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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