I’m looking for advice about bankruptcy. I have a utility debt of $44k that the Maine PUC says I need to pay $2,500 monthly on top of about $1,000 in monthly usage, which I just can’t afford. I want to file bankruptcy but am concerned about whether this could be considered fraud. Also, I plan to close my business and maybe go back to school. Will bankruptcy clear my utility debt and any unpaid bills directly owed to my college?
No worries, filing bankruptcy due to inability to pay isn’t fraud. Many file because they simply can’t keep up with their bills. Utility debts are generally dischargeable.
Bianca said:
No worries, filing bankruptcy due to inability to pay isn’t fraud. Many file because they simply can’t keep up with their bills. Utility debts are generally dischargeable.
Good to know! It’s a relief that utility debts might be included in the discharge.
As long as you’re not hiding assets or income, it’s perfectly legal to file bankruptcy. Utility bills can be part of it, so no need to worry about fraud.
Ira said:
As long as you’re not hiding assets or income, it’s perfectly legal to file bankruptcy. Utility bills can be part of it, so no need to worry about fraud.
Makes sense! I’d never try to hide assets. Thank you!
If you owe the college directly (like tuition bills), it might get discharged, but it depends. Student loans generally don’t, but direct debts to the school sometimes do.
Winter said:
If you owe the college directly (like tuition bills), it might get discharged, but it depends. Student loans generally don’t, but direct debts to the school sometimes do.
That’s exactly what I needed to clarify—thank you!
If your school bill is for past tuition or fees, it might be discharged in Chapter 7. But check with a bankruptcy lawyer about the specifics.
Leith said:
If your school bill is for past tuition or fees, it might be discharged in Chapter 7. But check with a bankruptcy lawyer about the specifics.
I’ll reach out for more specifics, thank you!
Not fraud at all if you’re genuinely unable to pay. Bankruptcy laws are there to help people who can’t keep up with debts. Filing is totally within your rights.
Jody said:
Not fraud at all if you’re genuinely unable to pay. Bankruptcy laws are there to help people who can’t keep up with debts. Filing is totally within your rights.
That’s reassuring. Appreciate your input!
Some people worry about fraud accusations, but it only becomes an issue if you’re hiding money/assets or lying about your income. Sounds like you’re in the clear!
Linden said:
Some people worry about fraud accusations, but it only becomes an issue if you’re hiding money/assets or lying about your income. Sounds like you’re in the clear!
Good to know! Definitely not hiding anything.
Bankruptcy is meant to help people like you who have had a tough time. Be honest with your trustee about your records. They understand that not everyone has perfect records!
Ann said:
Bankruptcy is meant to help people like you who have had a tough time. Be honest with your trustee about your records. They understand that not everyone has perfect records!
Great to hear! I’ll do my best with what I have.
In Chapter 7, sole proprietorship debt is usually discharged since it’s tied to your personal finances. So, the utility debt should qualify.
Gray said:
In Chapter 7, sole proprietorship debt is usually discharged since it’s tied to your personal finances. So, the utility debt should qualify.
This is really helpful. Thank you for explaining!
If you owe your college directly, include it in the filing. Sometimes schools hold transcripts for unpaid bills, but bankruptcy might release you from that debt.
Westley said:
If you owe your college directly, include it in the filing. Sometimes schools hold transcripts for unpaid bills, but bankruptcy might release you from that debt.
Thanks! I’ll look into including the college bills in my filing.
I had a similar utility debt issue, and bankruptcy wiped it out. It’s worth filing if you can’t afford their payment plan.