Legal Question in Bankruptcy in Illinois

Utility Security Deposits

I have recently claimed bankrupty and my utilities were included. They are now asking for enormous deposits or they will shut my utilities off. What are my rights?


Asked on 4/25/03, 12:17 pm

1 Answer from Attorneys
Thaddeus Hunt Law Offices of Thaddeus Hunt

Re: Utility Security Deposits

When you file a Chapter 7 bankruptcy you receive protection from collection from creditors and the "wiping out" of most debts (including utilities). However, a creditor is not required to extend you credit or service.

Alternatively, it is questionable if an utility company is using the notion of a large security deposit as a "back door" to collecting on the debt owed to it. I would be interested in knowing the debts to the utility company and the amount they are requiring in a security deposit.

Please email or telephone my office at (312) 236-9906 to discuss.

Very truly yours,

Thaddeus J. Hunt

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Answered on 4/27/03, 12:35 am


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