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Utility service


If a debtor is past due for any utility service when a bankruptcy is filed, the amount owed at the time of filing is dischargeable. 

A utility company can charge a security deposit for post-petition service, usually an amount equal to 2-3 months of the average bill. Xcel Energy, for example, usually stretches payment of the post petition security deposit over a couple of monthly bills or so. If utility payments remain current in the future, a debtor eventually should get the security deposit credited back. 

See 11 U.S.C. § 366 - Utility service.


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