Legal Question in Bankruptcy in Idaho

Collection Efforts by Utilities

Can the telephone company shut-off your service while a bankruptcy is in progress? They have been notified and they have called to demand payment and tell me that my service will be shut-off due to non-payment. Is this not a "collection effort"? Which is what I thought I was protected from by the "motion of stay".

Please inform me of what my rights are and how to ensure my service is not discontinued.

Thank you!


Asked on 11/02/97, 11:11 pm

2 Answers from Attorneys

Daniel Press Chung & Press, P.C.

Phone co./bankruptcy

While a utility such as a phone co. can't shut you off or make efforts to collect your pre-petition bill, the code provides that they can retain your pre-petition security deposit to be offset against your pre-petition bills, and that they can require you to post another security deposit. Failure to do so is grounds to terminate your service.

Your lawyer should have advised you of this.

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Answered on 11/03/97, 3:02 am
Patrick A. T. West Ohio Ticket Defense Patrick A. T. West, Attorney at Law

Utilities in Bankruptcy

The utility cannot demand payment for any part of the bill which was listed in bankruptcy. If, say, you were 3 months delinquent on your telephone bill when you filed and you scheduled the entire 3 months of bills among your unsecured debts, the telephone company cannot try to collect the past due amounts. On the other hand, if it has been a month since you filed and you hav not paid your bill for that month, the telephone company can shut you off for not paying that one month's bill.

Look at your schedules. See what arrearages are scheduled. If the telephone company is trying to collect notwithstanding the bankrtuptcy, ask for a contempt order. Maybe you can get a couple months of free telephone service because of the telephone company's contempt.

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Answered on 11/03/97, 11:30 am


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