The bankruptcy code prohibits utility companies from shutting off or refusing to give you services because you filed bankruptcy. As soon as you file, this prohibition will go into effect. It is similar to the automatic stay that goes into effect when you file your case, but is slightly different. The most important difference is that the prohibition against shutting off service will terminate, and the utility will be allowed to disconnect your service, if “adequate assurance” of future payment is not made within 20 days of filing. Typically, “adequate assurance” means an additional utility deposit. If adequate assurance is given, than the utility cannot disconnect your service, even if you owe back payments that are being discharged in your bankruptcy case.
