One of the biggest concerns of Bucks County debtors is what happens to their utility services if he/she fell behind in payment prior to filing for bankruptcy. Do not be alarmed!
Section 366 of the Federal Bankruptcy Code provides the debtor with continuance of service providing “adequate assurance” for future service is given within twenty days of filing a Bucks County Chapter 7 or a Chapter 13. The assurance can be a cash deposit, letter of credit, certificate of deposit or some other security agreed upon by debtor, utility company and trustee. Generally, the utility company requests a reasonable monetary amount.
In many communities, like in Bucks County, it often happens that there are a limited number of utility providers so it would be difficult for a debtor to find another company to serve his/her needs. The "adequate assurance" provision provides the debtor with some level of security knowing that, going forward, his electric , phone or gas, will not be turned off.
Of course, the the Bucks County debtor must continue to make regular payments in order for the assurance to remain in effect.
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