Utilities and Bankruptcy
If you are delinquent on utility service, the filing of a bankruptcy petition will prevent disconnection of service for 20 days. If you have already been disconnected, the utility must reconnect you. The utility will be able to apply any deposit to past due amounts. If the deposit is not enough to cover the arrearage, the balance of the past due amount will be discharged in a Chapter 7 bankruptcy or included in the payment plan as unsecured debt in a Chapter 13 bankruptcy.
To continue service beyond the date 20 days after filing, an agreement providing "adequate assurance" of future payment will have to be made with the utility. Restoring the deposit to the pre-filing amount or submitting as deposit an amount equal to two months average service is common.
If you are not delinquent on utility service, the utility cannot disconnect your service or demand a greater deposit.
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