Delinquent Utilities and Disconnection Under New Bankruptcy Provision

By Cathy Moran, Esq. (Redwood City, CA)

Bankruptcy debtors with delinquent utility bills got a measure of protection from interruption in their service under an amendment to the Bankruptcy Code in the omnibus spending bill enacted December 27,2020.

Individual debtors cannot have their utilities disconnected as long as they make some payment for service provided promptly after the commencement of the case.

The newly created subsection (d) in 11 . . .

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From the Editor – Dismissal

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By The Honorable William Houston Brown (Retired) Undistributed funds returned to debtor upon dismissal. Under § 1327(b)’s vesting requirement, unless a confirmed plan provides otherwise, any undistributed funds held by the trustee at dismissal of the case must be returned to the debtor. Although not necessary to rely on § 347(b)(3), the conclusion on effect of vesting at confirmation was...

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Angela M. Scolforo

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