Can Public Utility Fees be Discharged?
Public utilities, such as the gas and electric company, are not permitted to discontinue service because of a bankruptcy filing. However, if the utility bill is included in the bankruptcy and not paid, then the utility has the right to demand that the debtor pay a deposit within 20 days to ensure the continuation of service. Sometimes, the utility company’s requested deposit is several times the amount of the bill. Thus, it often makes sense for a cash-strapped debtor to simply pay the bill.
