Will My Utility Company Take My Deposit When I File Bankruptcy?
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Your utility company might keep your security deposit when you file bankruptcy. The company is allowed to keep any security deposit that you paid them before bankruptcy. It's also allowed to charge you a reasonable security deposit for future services after you file.
Written by Upsolve Team.
Updated November 11, 2021
If you're filing bankruptcy, you may be wondering if your utility company can take your security deposit. The short answer is maybe.
The utility company is allowed to keep any security deposit that you paid them before bankruptcy. They are also allowed to charge you a reasonable security deposit for future services after you file. That said, they may not do either, or they may do both — it's up to them.
This is probably a small price to pay for a financial fresh start, but it's worth considering.
