Bankruptcy and your utility bills in Ontario
Unsecured debts are debts where the creditors have no rights over explicit assets of the person owing the debt.
Secured debts are typically loans where the debtor promises the lender that certain assets can be seized by the lender, if the debtor does not honour the terms of the loan.
When filing for personal bankruptcy, you are only discharged from unsecured debts. If you want to be discharged from secured debts, you would have to surrender the assets you pledged as security to the creditor. If there is a shortfall between what you owe to the secured creditor and what the asset was worth, this difference would be an unsecured debt and would be discharged in the bankruptcy.
If you are behind in your utility bill payments by more than a month, this is an unsecured debt and can be included in your bankruptcy.
Please note that if the utility provider you are using is the only utility provider in your area, you cannot be refused service simply because you filed for bankruptcy on their debt, BUT, the utility provider does not have to provide you the service on a credit basis, and you may need to pay upfront for the services or remit a deposit to the utility to ensure future service.
If you find you have debt that you were not able to deal with contact our office today for a free initial consultation and see what your options are. Make the best financial decision for yourself, and get out of debt.