Bankruptcy Forms: Filing Bankruptcy Chapter 7 Bankruptcy Software Chapter 13

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TITLE 11–BANKRUPTCY

CHAPTER 3–CASE ADMINISTRATION

Sub Chapter IV –Administrative Powers

Sec. 366. Utility service

   (a) Except as provided in subsection (b) of this section, a utility 
may not alter, refuse, or discontinue service to, or discriminate 
against, the trustee or the debtor solely on the basis of the 
commencement of a case under this title or that a debt owed by the 
debtor to such utility for service rendered before the order for relief 
was not paid when due.
    (b) Such utility may alter, refuse, or discontinue service if 
neither the trustee nor the debtor, within 20 days after the date of the 
order for relief, furnishes adequate assurance of payment, in the form 
of a deposit or other security, for service after such date. On request 
of a party in interest and after notice and a hearing, the court may 
order reasonable modification of the amount of the deposit or other 
security necessary to provide adequate assurance of payment.

(Pub. L. 95-598, Nov. 6, 1978, 92 Stat. 2578; Pub. L. 98-353, title III, 
Sec. 443, July 10, 1984, 98 Stat. 373.)


                      Historical and Revision Notes

                         legislative statements

    Section 366 of the House amendment represents a compromise between 
comparable provisions contained in H.R. 8200 as passed by the House and 
the Senate amendment. Subsection (a) is modified so that the applicable 
date is the date of the order for relief rather than the date of the 
filing of the petition. Subsection (b) contains a similar change but is 
otherwise derived from section 366(b) of the Senate amendment, with the 
exception that a time period for continued service of 20 days rather 
than 10 days is adopted.


                        senate report no. 95-989

    This section gives debtors protection from a cut-off of service by a 
utility because of the filing of a bankruptcy case. This section is 
intended to cover utilities that have some special position with respect 
to the debtor, such as an electric company, gas supplier, or telephone 
company that is a monopoly in the area so that the debtor cannot easily 
obtain comparable service from another utility. The utility may not 
alter, refuse, or discontinue service because of the nonpayment of a 
bill that would be discharged in the bankruptcy case. Subsection (b) 
protects the utility company by requiring the trustee or the debtor to 
provide, within ten days, adequate assurance of payment for service 
provided after the date of the petition.


                               Amendments

    1984--Subsec. (a). Pub. L. 98-353 inserted ``of the commencement of 
a case under this title or'' after ``basis''.


                    Effective Date of 1984 Amendment

    Amendment by Pub. L. 98-353 effective with respect to cases filed 90 
days after July 10, 1984, see section 552(a) of Pub. L. 98-353, set out 
as a note under section 101 of this title.

                  Section Referred to in Other Sections

    This section is referred to in sections 106, 901 of this title.



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Note: For affordable legal assistance The Center For Debt Management highly recommends Standard Legal's Do-It-Yourself Bankruptcy Forms Software Kits. For credit repair services,
the most trusted law firm in America with over 15 years of experience is Lexington Law Firm.

For more bankruptcy help and bankruptcy alternatives, go to Bankruptcy Resources

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Legal Resource Center: United States Code TITLE 11 Filing Bankruptcy Forms Software