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Will My Utility Company Take My Deposit When I File Bankruptcy?

Filing bankruptcy is a difficult decision that comes with many consequences. One of those consequences is the possible loss of your security deposit with your utility company.

When you file for bankruptcy, the court will issue an automatic stay. This means that creditors are not allowed to take any action against you without the court's permission. However, there are some exceptions to this rule and utility companies are one of them.

If you have a past due balance with your utility company, they may be able to take your deposit in order to cover the outstanding amount. This is because utility companies are considered priority creditors in bankruptcy cases.

If you're facing financial difficulties and are considering filing bankruptcy, it's important to speak with an experienced attorney who can help you understand all of your options and their potential consequences.

The Law Offices of Omar Zambrano has helped thousands of people and businesses in the past to get out of debt and start over.

Our goal is to help you find a fresh start so FAST!

Schedule your free consultation today! By Calling 626-338-5505 or visiting us at 12738 Ramona Blvd Baldwin Park CA 91706


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