Legal Question in Bankruptcy in Wisconsin
im in a chapter 13 and my power company is stating i owe them a deposit that is due by the 1st of october i put them in the 13 plan what is this deposit for and is there a way i can get a extention on this
1 Answer from Attorneys
The bankruptcy code allows public utilities to request a deposit applicable toward future services as a condition of continued service in the future. The good news, however, is that this deposit can only be applied to future services which are not discharged in the bankruptcy in any event (unlike your old bill, which is completely discharged and forgiven in the bankruptcy). In other words, this is money which you would have to pay anyway in order to remain connected in the future, i.e., "money in the bank" for this winter's heat bill. You should talk to your attorney about negotiating the extension; the negotiations may cost you more than simply paying as much as you are able to pay towards the requested deposit amount. In my experience, utilities are frequently understanding of those making a sincere and significant effort to pay, even if the payments are not the full amount demanded. My comments here are not legal advice, nor do they create an attorney client relationship between us; rather they are only for public educational purposes on this website. You are; however, always welcome to contact my office in Racine to discuss any additional questions which you may have.
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