Utility Bills & Bankruptcy

     There are many debts that can be wiped out in bankruptcy, including utilities such as gas, electric, and telephone. Many people are concerned that if they put their utility bills in bankruptcy the utility will shut off service. Do not worry about that because it is totally illegal for a utility to shut off service when a person files for bankruptcy.

     If you have had your service shut off because you have been unable to pay your bill, once you file for bankruptcy the utility is required to turn your service back on. The utility is not allowed to turn off service for someone who is in bankruptcy, as long as that person is making payments on his/her utility bill for service and usage that has taken place after the bankruptcy filing. This means that you do not have to pay any utility bill that was incurred before you filed for bankruptcy. You are only responsible to make payments for the utility bills that you incurred after your filing date.

Sometimes it takes the utility company a while to reset their computers and to bill you correctly. For example you might use $200 worth of electric and $200 worth of phone service during the month of June, and on July 1 you might get a bill for $400 for the electric and $500 for the phone bill. If you get a bill like this, it is a mistake. It simply means that the utilities have not yet updated their computers to reflect your bankruptcy filing. In this example you are only responsible for the $200 phone bill and the $200 electric bills that you incurred after your bankruptcy filing date.

     The utility company will normally require a security deposit for future usage. This is not a bad thing, because it is really like putting money in the bank. When you make a deposit to the utility, they have to keep your money in a special account and it normally earns interest at the rate of 6% per year. If you keep paying your utility bills after the bankruptcy has been filed, the utility will normally return both your deposit and the accrued interest within 12 months after your bankruptcy has been filed or it will give you credit on your new bill. Your deposit works for you and helps you.

      If for some reason the utility requires a deposit which is beyond your financial ability to pay, please let us know because we have the right to negotiate with the utility service to lower the deposit to something reasonable that you can easily afford.

      The bankruptcy law gives you the right to wipe out your pre bankruptcy utility bills. We therefore recommend in most cases that our clients include their utility bills as part of their bankruptcy. If for some reason your utility bill is up to date and rather small, you might just want to pay it off and not put it in your bankruptcy.

Cable TV: You are entitled to wipe out a pre-bankruptcy bill for cable TV by filing for bankruptcy. Since the cable TV company is not a utility, they will normally charge you a fee to turn on your cable service if it had been turned off before bankruptcy.

Utility Phone Numbers

     In the event you need to contact any of the local utility companies concerning your billing or questions about your service you can use the following telephone numbers or fax numbers. When calling you should ask to speak with someone in the bankruptcy department since they would have the most knowledge concerning your situation.

Company: Phone Number: Fax Number:
Verizon 800-635-4242 ::: 800-287-9933 ::: 973- 660-9576
South Jersey Gas 609-561-9000 ::: 888-766-9900 ::: 609-567-2684
Atlantic Electric 609-645-4594 ::: 800-642-3780 ::: 609-645- 4455
Vineland Electric 856-794-4021 ::: 856-794-4340
Comcast Cable 856-692-2100 ::: 1-800-COMCAST ::: 856-427-4601  

 If you have any questions concerning your rights and responsibilities, and the responsibilities of the utility company with respect to outstanding bills owing to your phone company, gas company, and electric company, feel free to ask us.