Can I discharge utility bills with bankruptcy?
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I fell behind on my rent, credit card bills, and utility bills and amassed considerable debt. Can I discharge utility bills with bankruptcy?
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Yes, utility bills may be discharged by way of bankruptcy, which prevents the utility company from carrying out their threat of cutting off your utilities. By filing for Chapter 7 of the U.S. Bankruptcy Code, a debtor can discharge all of his or her consumer or unsecured debt, including back rent, utility bills, medical bills, personal loans and credit cards. Unsecured debt consists of debt consisting solely of a borrower's promise to pay and is not supported by collateral. Chapter 7 provides debtors with an opportunity to have start on a clean slate. Therefore, by filing for bankruptcy, a debtor's utility bills are forgiven or permanently retired, and he or she is no longer under a duty to pay them. To qualify for a Chapter 7 discharge, a debtor must not have obtained another Chapter 7 discharge within the past eight years.
Posted by Yara Zakharia on 18 May 2010
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