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Thursday, November 29, 2018

How Utilities and Bankruptcy Interact

">Under 11 USC section 366,

"...a utility may not alter, refuse, or discontinue service to, or discriminate against, the trustee or the debtor solely on the basis of the commencement of a case..."

As the weather changes and it often comes up in discussions, can a utility company discontinue service after a case has been filed. Generally no, unless certain points are met under Section 366. 

A typical method, is a security deposit, after the case is filed, which will provide adequate protection to the utility company. 

Don't be caught off guard this time of year, with the onset of freezing temperatures, you could easily be left in the cold. 

For a free comprehensive consultation, call today, 313-343-9930. 

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