Bill Summary
The Preventing Termination of Utility Services in Bankruptcy Act of 2019 is a proposed bill that aims to amend title 11 of the United States Code. This amendment would eliminate the requirement for individuals filing for bankruptcy to provide assurance of payment for utility services in certain circumstances. The bill states that if the debtor pays any outstanding utility debts within 20 days of filing for bankruptcy, and continues to pay their utility bills on time during the bankruptcy proceedings, they will not be required to provide proof of future payment. This legislation is intended to protect individuals from having their utilities shut off while going through the bankruptcy process.
Possible Impacts
1. This legislation could potentially help individuals in bankruptcy by allowing them to continue receiving necessary utility services without having to provide assurance of payment, which can be difficult for those already struggling financially.
2. On the other hand, this legislation could also potentially harm utility companies, as they may not receive the assurance of payment they typically require, leading to potential financial losses for these companies.
3. This legislation could also create a burden on the court system, as cases involving individuals who are unable to pay for utility services may increase due to the removal of the assurance of payment requirement. This could potentially slow down the bankruptcy process and create backlogs in the court system.
[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 9013 Introduced in House (IH)]
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116th CONGRESS
2d Session
H. R. 9013
To amend title 11 of the United States Code to dispense with the
requirement of providing assurance of payment for utility services
under certain circumstances.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
December 17, 2020
Mr. Johnson of Georgia introduced the following bill; which was
referred to the Committee on the Judiciary
_______________________________________________________________________
A BILL
To amend title 11 of the United States Code to dispense with the
requirement of providing assurance of payment for utility services
under certain circumstances.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Preventing Termination of Utility
Services in Bankruptcy Act of 2019''.
SEC. 2. AMENDMENT.
Section 366 of title 11, United States Code, is amended by adding
at the end the following:
``(d) Notwithstanding any other provision of this section in a case
in which the debtor is an individual, if the debtor pays in the 20-day
period beginning on the date of the order for relief debts owed to a
utility for service provided during such period and thereafter pays
when due debts owed to such utility for service provided during the
pendency of the case, then the debtor may not be required to furnish
assurance of payment.''.
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