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How personal bankruptcy allows you to keep the lights on

One of the consequences of not being able to pay your Tennessee energy bills is that one day you may come home, flick on a light switch, and find your lights no longer work. Not only that, but your television and computers will not come on, your air conditioner will not cool your home and your refrigerator no longer cools your food. As it has turned out, your utility company has decided to switch off your power, leaving you in the dark and adding misery to your financial problems.

The Huffington Post points out that utility costs actually are one of the top ten reasons why people go bankrupt. Even if you have not incurred a lot of credit card debt, student loan debt or other expenses, the problem of rising costs of air conditioning, heat and electricity can propel some homeowners into financial debt. The need to maintain a home’s utilities may make it seem impossible to get a handle on your finances, and if your utility company is not appeased, they will shut off electricity to your home.

This is where declaring personal bankruptcy comes in. With bankruptcy comes a stay on bill recollection efforts, which can provide you an important breather in rebuilding your finances. As part of the bankruptcy process, you will have to come up with a payment plan that prioritizes which debts to pay off. Findlaw recommends that paying off your utilities should be at the top of your list along with mortgage payments or vehicle loans. You would want to prioritize these debts because unlike credit card payments or other consumer debt, these kinds of debts generally come with smaller interest rates attached.

This benefit of personal bankruptcy allows you to prioritize payments that allow you to stay in your home, keep your car and maintain your home's utilities. Once you have been able to make payments for your life necessities, you can work out plans to pay off other debts down the line, and in the process, keep your home’s lights on.    

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We help people file for bankruptcy relief under the Bankruptcy Code.