Can Utility Bills Be Included in Chapter 13?

Yes, you can absolutely include past-due utility bills in a Chapter 13 bankruptcy.

When you’re drowning in debt, the fear of getting your lights, water, or gas shut off is one of the worst feelings in the world.

It’s not like a credit card bill you can ignore for another week. This is about keeping your home livable. You start getting bright pink shutoff notices, and you’re forced to wonder, “Will bankruptcy even help with this, or am I going to be left in the dark?”

It’s a terrifying thought. But here is the good news:

The second you file for Chapter 13, an “automatic stay” immediately stops all utility companies from shutting off your service. It also gives you a way to deal with the past-due balance.

In this guide, we’ll explain exactly how Chapter 13 handles your utility bills, how it protects your service, and what happens to that overdue amount in your repayment plan.

How Utility Bills Are Treated in Chapter 13 Bankruptcy

In a Chapter 13 case, utility debts fall under the category of nonpriority unsecured claims. This means they are treated similarly to credit cards, medical bills, and personal loans. Unlike priority debts—such as certain taxes or domestic support—utility arrears do not have to be paid in full unless your plan proposes to do so.

Here’s how they are typically handled:

• Placed into your 3–5 year repayment plan
• No interest continues to accumulate on the arrears
• You may pay only a percentage of the total balance
• Any unpaid amount after plan completion is discharged

Can Utility Shutoffs Be Stopped by Filing Chapter 13?

Yes. Filing Chapter 13 triggers the automatic stay, a legal protection that prevents creditors—including utility providers—from disconnecting service or attempting collection on past-due bills.

Once your case is filed, the utility company must:

• Stop shutoff plans
• Reconnect service if it was recently disconnected (in many cases)
• Stop all collection activity

However, utilities are allowed to request a deposit for future service. These deposits are typically modest and are allowed under the Bankruptcy Code to ensure ongoing payment.

What Utility Debts Can Be Included?

Utility Deposits After Filing

Most Utah utility providers require a security deposit after filing Chapter 13. This deposit ensures future payments and typically equals one to two months of average service charges. You usually have about 20 days after filing to submit the deposit.

If you miss this deadline, the utility company may request permission from the bankruptcy court to disconnect service. A bankruptcy attorney can help you negotiate the lowest possible deposit or contest an unreasonable one.

How to Prevent Utility Shutoffs Before Filing Chapter 13

Ideally, you want to avoid losing service before your case is filed. While Chapter 13 can stop shutoffs, taking smart steps in the weeks leading up to filing can keep things more stable for your household.

Strategies that may help include:

• Contacting the utility company early to request a short-term payment arrangement
• Paying at least a small amount toward the bill to show good faith
• Asking about medical or hardship programs if someone in the home has serious health needs
• Timing your bankruptcy filing so the automatic stay activates before the shutoff date

When you meet with a bankruptcy attorney, bring recent utility bills and shutoff notices. This allows your lawyer to prioritize urgent accounts and help plan the filing date around critical deadlines.

Do Ongoing Utility Bills Need to Be Paid During Chapter 13?

Yes. While past-due balances are handled inside the plan, all new utility bills must be paid on time after filing. Falling behind on post-petition bills can lead to shutoff and may complicate your Chapter 13 case.

The best approach is to treat your current utility usage as part of your core monthly budget. Chapter 13 is designed to free up cash flow so essential bills—like housing, food, and utilities—become manageable again.

How Utility Bills Fit Into a Utah Chapter 13 Repayment Plan

A Chapter 13 repayment plan divides your debts into categories. Utility debts fall into the last priority tier, meaning you may repay anywhere from 0% to 100% of the balance, depending on your income, household size, and disposable income calculation.

Your plan payment is based on:

• Regular income (wages, self-employment, etc.)
• Reasonable and necessary living expenses
• The total of secured and priority debts
• What is left over as “disposable income”

For more on how the plan works, review What Chapter 13 Bankruptcy Can Do for You.

How Much of Your Utility Debt Will You Pay?

The amount you pay on utility arrears depends on your Chapter 13 plan structure. Here’s a general comparison to show where utility bills fit among other debts:

How Chapter 13 Interacts With Utah Utility Assistance Programs

Many Utah households use energy assistance programs to help manage high bills, especially during winter. Filing Chapter 13 does not prevent you from receiving help through these programs. In fact, using assistance wisely can make it easier to stay current on post-petition utilities.

Important points to understand:

• Energy assistance is often not treated as taxable income and generally does not count against your ability to file.
• Programs aimed at low-income households can work alongside Chapter 13 to support your budget.
• By reducing new utility costs, assistance leaves more room in your monthly finances to stay on track with your plan payment.

If you currently receive—or may qualify for—utility assistance, let your bankruptcy attorney know. It can be factored into your budget and plan design.

Common Utah Utility Providers and How They Handle Bankruptcy

Most major Utah utility companies have established bankruptcy departments. They routinely work with Chapter 13 filers and comply with federal requirements.

• Rocky Mountain Power — typically requests a deposit after filing and communicates directly with your attorney if issues arise.
• Dominion Energy — usually requires a post-petition deposit within a set timeframe and expects prompt payment of new bills.
• Local water districts and city utilities — generally follow bankruptcy stay rules but may have their own internal deposit policies.

Can Utility Providers Refuse Future Service After Chapter 13?

No. Utilities cannot deny service solely because you filed bankruptcy. However, they can require a reasonable deposit and may limit payment arrangements for future bills. As long as you pay current usage, most providers treat you like any other customer.

What Happens to Utility Debts If Your Chapter 13 Case Is Dismissed?

If your Chapter 13 case is dismissed before completion, the protection of the automatic stay ends. At that point, utility companies can resume normal collection activity on any remaining balances that were not paid inside the plan.

This can lead to:

• Renewed shutoff threats or disconnections
• Collection calls and letters
• Possible demands for larger deposits to restore or keep service

In some situations, you may be able to convert your case to Chapter 7 or refile Chapter 13. If you run into trouble making plan payments, it is important to talk to your lawyer quickly—before dismissal—so you keep as much protection in place as possible.

How Chapter 13 Helps Prevent Repeated Utility Problems

Because Chapter 13 consolidates debts and sets predictable payments, it often prevents the cycle of repeated shutoff threats. Your income is reorganized into a structured plan, giving you a clear path to stability.

By wiping out or reducing unsecured debt, the plan frees up cash flow so that essential bills—like utilities, rent or mortgage, food, and transportation—can be paid on time. Over three to five years, this consistency can dramatically improve your financial health.

To understand how bankruptcy helps long-term, see Rebuilding Credit After Bankruptcy.

Should You Include Every Utility Debt in Your Chapter 13 Case?

Yes, if you want complete protection. Leaving out a utility debt may allow that provider to continue collecting or shut off service. Disclosing all debts ensures the automatic stay applies across the board and that each creditor is treated properly under the plan.

Your attorney will review your bills and credit report to identify all utility-related balances, including accounts that have already gone to collections.

How BDJ Express Law Helps With Utility Debts in Chapter 13

Our attorneys evaluate your full financial picture, including overdue utilities, mortgage arrears, vehicle payments, taxes, and unsecured debts. We ensure your repayment plan protects you from shutoffs and gives you breathing room while complying with Utah bankruptcy requirements.

We also communicate directly with utility providers, negotiate deposit amounts where possible, and help you stay current on new bills after filing so you keep essential services running smoothly.

Get Experienced Chapter 13 Help From BDJ Express Law

If utility bills are becoming unmanageable, Chapter 13 may offer immediate protection and a clear path toward restoring financial stability. Our firm guides Utah families through every step of the bankruptcy process with speed, precision, and compassionate support.

Call BDJ Express Law now for a free consultation: 801-316-8441

Request a confidential bankruptcy evaluation