By: dmc-admin//June 30, 2008//
Bankruptcy
Utility deposits
A utility may not require a debtor to post a deposit for continued service under 11 U.S.C. 366(a), if it would violate state law.
"Because the Debtor has income of less than 200% of the Poverty guidelines, state law would not permit WE Energies to require the Debtor to post a deposit. Under sec. 366(a) it would not be unlawful discrimination for the utility to require a deposit of a Chapter 7 debtor that is not required under state law."
08-23636 In re: Cannon
E.D.Wis., Kelley, Bnkr. J.