Utility companies

utterly_ashamed

Hi me again!

What happens with utilities like water and electric when you file for bankruptcy?

I’m not behind on any bills. I read that utility companies are all informed when you file regardless of whether you have arrears or not and as such they have to then treat you as a new customer.

I spoke to a debt charity today however and they said they had never heard of utility companies being informed unless they were listed as creditors.

Does anyone have an experience / know about this?

TheGardener

Yes, my OR informed all the utilities even though I wasn't behind with the instalments. What happened was:
water - Account was closed and a new account from the date of the BR opened and the bill calculated from that date to the end of the year and a new DD set up.
Energy - same as water - the balance of the bill to the date of BR was cleared and a new account number starting from the date of BR with a zero balance was opened. Although I was up-to-date on the DD's, there was a small balance from the previous winter bill so I was technically in debt.
Phone/internet - no response from them - nothing changed.

Most people pay by DD and many folk are technically 'in debt' (or have historical debts they include in the current bill) as they spread the annual cost out over the year so it is logical that the OR would contact the utilities.

Kimberley

Do they force you to go onto a pre payment meter?

TheGardener

Pre-payment meters were not even mentioned to me. My record of paying my DD on time was perfect. I was simply issued with a new account number and had to set up a new DD.

utterly_ashamed

Thanks for that info!

My main worry is being forced to go on pre payment meters as I’m a rented accommodation and really don’t want to draw any attention to my situation! Also I’m classed as disabled so meters wouldn’t necessarily be hugely suitable for me.

TheGardener

There is no real reason that pre-payment meters would be installed but it may depend on which energy supplier you have.

What's more concerning is that a debt adviser would not be aware that the OR would contact the utility companies given that a large number of energy customers would have a technical debt if they pay by DD spreading the cost of winter fuel over the summer months.

Polgara48

I've been through this, I have no idea whether my utility companies were contacted, I was up to date and paying by DD and just carried on doing so, same for my sky & mobile phone contracts.

To reassure you on your other point I've been informed that if you are disabled they cannot put you onto card meters, they're not allowed as this could cause problems for you - ie having to get top ups, reaching the meter etc. I was told this by my energy provider.

Are you also aware you can claim a warm homes discount? If elegible it's £140 per year paid off your bill in Feb, you have to reapply each year to your energy provider. Also let them know you are disabled as they can make more flexible arrangements re any appts, works needed etc. If you already know all this ignore

luvchocolate

I was not aware if my examiner contacted the utilities as they continued as normal with no change whatsoever.
I changed suppliers whilst B.R was showing on my credit file and was asked to pay £300 deposit to be refunded upon me paying 6 payments by D.D, never a mention of a pre payment meter.

utterly_ashamed

Yeah I!!!8217;m getting a bit concerned with these !!!8216;debt advisors!!!8217;. So far two charities have tried to steer me towards an IVA rather than bankruptcy (guessing maybe cos they earn money setting them up ?). I have no assets at all - no house or car - but will prob have to pay in to an IPA because I!!!8217;m earning. Why string it out for 5 years instead of 3? Advisor told me IVA payments more manageable and budget to live on more generous but I was under the impression IVA and BR living expenses were more or less the same ...

Butts

My Bankruptcy didn't affect my Utilities at all, just carried on paying the monthly payments as before on each.

TheGardener

utterly_ashamed wrote: »

Yeah I'm getting a bit concerned with these debt advisors. So far two charities have tried to steer me towards an IVA rather than bankruptcy (guessing maybe cos they earn money setting them up ?). I have no assets at all - no house or car - but will prob have to pay in to an IPA because I'm earning. ...

If 2 advisers are suggesting IVA then it might be the best way to go - I didn't mean to suggest the advisers you had were completely off the mark - just that on that small detail.