Missouri Laws on Bankruptcy and Utility Payments

Bankruptcy can be a challenging and overwhelming process for individuals and families seeking relief from overwhelming debt. In Missouri, understanding the laws surrounding bankruptcy and how it affects utility payments is crucial for those considering this option. This article delves into Missouri's bankruptcy laws, the types of bankruptcy available, and how these laws influence utility obligations during bankruptcy proceedings.

In Missouri, individuals typically file for Chapter 7 or Chapter 13 bankruptcy. Chapter 7 bankruptcy, often referred to as "liquidation bankruptcy," allows debtors to discharge unsecured debts, such as credit card bills and medical expenses. In contrast, Chapter 13 bankruptcy involves creating a repayment plan to pay off debts over three to five years while allowing individuals to keep their assets.

One essential aspect to consider when filing for bankruptcy is how it affects utility payments. In Missouri, utility companies are prohibited from terminating or refusing service based solely on a bankruptcy filing. However, there are specific regulations that both the debtor and the utility companies must adhere to.

Under the Missouri Public Service Commission rules, utility companies cannot disconnect service for reason of a bankruptcy filing. However, if a debtor has outstanding bills from the utility before filing for bankruptcy, the company may require payment of those arrears to continue service. This means that maintaining utility service while navigating bankruptcy may involve additional considerations, particularly in terms of pre-existing debts.

It is also important to note that when you file for Chapter 7 bankruptcy, your bankruptcy trustee may address any arrears owed on utilities as part of the overall bankruptcy estate. If you anticipate difficulty maintaining utility services due to past due balances, it is wise to communicate with your utility provider to explore options for payment plans or resources that may assist in settling your account.

For those filing Chapter 13, utility payments can be included in your repayment plan. This allows you to manage past due utility amounts while maintaining necessary utility services during the bankruptcy process. By making timely payments as outlined in your plan, you can ensure the continuity of your utility services.

Another critical consideration is the timing of your bankruptcy filing in relation to your utility bills. If you are facing financial difficulties and foresee the need to file bankruptcy, it might be beneficial to assess your current utility obligations. Filing before accruing more debt may provide relief and prevent utility companies from pursuing disconnection.

Overall, understanding Missouri laws regarding bankruptcy and utility payments is essential for anyone considering filing for bankruptcy. It is recommended to consult with a bankruptcy attorney who can provide legal advice tailored to your unique situation and guide you through the complexities of the bankruptcy process, especially concerning utility payments.

In conclusion, while Missouri laws protect individuals in bankruptcy from losing utility services due to the filing itself, past due balances can present challenges. Keeping communication open with utility providers and adhering to repayment plans are vital steps in ensuring that both your financial obligations and necessary services are managed effectively during and after the bankruptcy process.