If you decide to write to any of these services, be
sure to include your: name, address, phone number, previous addresses for
the past two years, social security number, birth date, employer,
signature—and be sure to include your payment. (You'll have to call to get
the payment amount.) Proof of identity such as a photo copy of your driver’s
license will also be required. Normally you are better off if you just pay
for the report.
20) Can I file jointly with my spouse? Does my
spouse have to file or sign if I want to file individually? Yes,
you can file jointly. No, your spouse doesn't have to file but, if most of
your debts are joint debts, he or she may want to. There is no need for a
spouse to file if the debts are not in his or her name. If you are filing a
Chapter 7, and the bills are also in your spouse’s name, he or she generally
should file to be protected. (Co-signers are protected in a 13 with 100%
plans, but are not in a Chapter 7.) There should be no additional charge
for a spouse filing, but some firms charge extra. The only extra work to do
in a joint filing is adding an additional name and social security number to
the petition.
21) Will it affect my spouse’s credit? Is
he/she responsible for my credit cards if he/she is an authorized user?
No, filing will not affect your spouse's individual credit, but if he or she
is a co-signer on any debt that is not paid that will affect him or her.
The fact that you filed bankruptcy does not appear on a spouse's credit
report unless he or she also files bankruptcy.
Unless your spouse has signed to be legally
responsible, they are not responsible. However, many credit card companies
will argue that she is responsible. They may even put a “no pay” on her
credit report if the amount is unpaid; however, she may ask any credit
reporting service to correct that. If she does so, the credit card company
will have to show that she signed for it. If they can’t, it will be removed
from her credit report file. In other words, the credit card collectors may
try to collect from her by claiming she is liable, but she really is not.
If they damage her credit record, it may be grounds for a lawsuit. Credit
is normally granted based on a score from your past payment history, the
amount of debt that you owe, the length of time you have been repaying
present credit, if you have opened credit recently, and the types of credit
accounts you have.
22) Will my co-signers be protected?
Co-signers are protected only in a Chapter 13 to the extent that the plan
pays the full amount of the co-signed debt. If the plan pays the debt
completely, the co-signer is protected, but it will be listed in his or her
credit record as being paid late. The Creditor may ask the co-signer for any
remaining portion of the debt if it not paid completely. In a Chapter 7,
the co-signer will have some small protection regarding the collateral
during the proceeding, but only because the Creditor can’t go against the
property of the estate. After a Chapter 7 is over, the Creditor will
proceed against the co-signer personally.
23) Can I file a personal bankruptcy and not
have it affect my business? If you own your own business, the
business is a part of your assets. If it is worth very much, it may be
property of the Court. If your business files bankruptcy, it won’t affect
you because the business does not own you.
24) Can Bankruptcy stop foreclosures, wage
assignments, help me get my license back from an uninsured accident, stop
evictions, a judgment, or remove a lien? Yes.
25) What will happen to my bills? When
you file a bankruptcy, a Court order goes into effect that keeps Creditors
from legally collecting from you. When you are discharged (i.e., the
bankruptcy is final), the Creditor "charges off" the debt and gets a tax
deduction for the loss. The bill is not paid, and the debt shows up as a
bankruptcy charge-off on your credit report. Some Creditors will attempt to
get around the law and will continue attempts to collect after the
bankruptcy is filed. They can be sued for this, but you need to prove they
did it. One of the best methods is to record their call and then surprise
them in Court with it when they deny ever making the call. Most Creditors
that ignore the law will never send you letters or anything on paper after
you file, but they may make phone calls hoping that you will pay anyway.
26) What if I keep getting bills? You
will continue to get some bills from bankrupted debts after you file. What
happens is that the Bankruptcy Court sends out notices to the addresses that
you give to them (that is why correct addresses are so important), but some
Creditors never get these notices and continue to bill you. You should make
copies of your hearing notice. If you get a bill from a Creditor, send them
a copy of the bill and the notice. Some Creditors will continue to send
bills even if they receive notice. It may be that their computer can’t stop
sending out the bills, or they may simply be ignoring the stay hoping that
you will pay anyway. We can file a motion for contempt with the judge, and
we may also be able to sue for a violation of the Fair Debt Collections
Practices Act.
27) Do I have to pay my bills during the Chapter
7 or 13? No. Don’t pay any bill until after you file a Chapter 7
until you have negotiated with the creditor to keep the property. Don’t pay
any payment in a Chapter 13 unless it is the regular monthly mortgage
payment or car payment, and the 13 was filed to catch up the arrearage. A
stay is a federal Court order to stop. If the item is secured, your overdue
payments will continue to add up while you don’t pay on the item. However,
the Creditor can't take the collateral until the stay is terminated. If no
reaffirmation is filed within 45 days after the bankruptcy is filed, the stay
terminates and the bank can take the car. The Creditor may also file a
motion to terminate the stay after the bankruptcy is filed. Bankruptcy
stops your obligation to pay, but the Creditor still has a lien and rights
in the property. You often quit paying for items when you file so that you
have time to decide if you want to work out a repayment, redeem, or
surrender. I have rarely ever had a bank refuse to agree to repayment, but
you don’t want to make payments if they aren't going to let you keep the
property. Signing a reaffirmation will make you liable for any deficiency
if you have it repossessed later. In some rare cases, with people who are
never going to repay, the bank may refuse to reaffirm. Some credit unions
may refuse to keep a car or mortgage unless you also repay their credit
cards. In cases like this, you may want to redeem property instead. That
is why you don’t want to make payments just before or after you file. You
can take the time to negotiate your options. You don’t have to be caught up
on your payments to reaffirm, but some banks may request it—and all of them
want it.
28) Who notifies the Creditors and bill
collectors? After the bankruptcy petition is filed, the Court mails
a notice to all the Creditors listed in the schedules. This usually takes
1-2 weeks.
29) Do I have to go to Court? Not
exactly, but you will have to attend a hearing presided over by the
bankruptcy Trustee. This hearing is called the 341 Hearing (Meeting of
Creditors). At this hearing, the Trustee (who is an Attorney) will ask
questions, under oath, regarding the content of your bankruptcy papers,
assets, debts, and other matters. It is very much like a deposition, not
like a trial. If you can’t attend (example: if you are in the service
overseas), you can answer the questions by Affidavit. The Trustee is not
the judge. He is there to take any assets from you, if he can, and to check
the accuracy of your paperwork. The Trustee represents the banks—not
you. In a Chapter 13 you will have a second hearing to get your discharge
if your case was filed after October 2005. In this hearing you must show
that you are not charged or convicted of a crime of fraud or further behind
in support.
30) Where is my 341 hearing? Your 341
hearing is always at the Federal Court closest to you.
In Louisville, your hearing will be on the 5th
floor of the Federal Gene Snyder Courthouse at 6th and Broadway.
Use the elevator on the 6th street side, next to the Courier
Journal newspaper building. Hearings are on Tuesdays and Fridays, and the
hearings only last about 5 minutes each. If your paperwork is done
correctly, the hearing will be very short. Just bring your warm body,
Documents, proof of insurance on your car, a picture ID, and proof of your
social security number (social security card, W-2, etc.) to the hearing.
In Lexington, the hearings are at 100 Vine St. In
Frankfort, they are at the Federal Courthouse. Some Courts, such as the
Eastern District, require you and or your attorney to bring a second set of
documents.
31) What do I wear to the hearing?
Don’t wear cut-offs or jeans with holes in them and don’t wear sandals.
Suits are not required, but dress properly for a hearing in Federal Court.
Children are not supposed to be in the hearing room. Do not borrow
and wear flashy jewelry. This is not the time to brag about how rich you
are or how much you own. The Trustee is looking for assets to take from
you. He is not your friend. He represents the persons that you owe.
You must report what you own and it’s real value, but don’t brag about your
income and how much your car is worth—especially if you don’t have any.
Save that for when you want to impress the opposite sex in bars.
32) Do you show up with me at the hearing?
Of course! We take care of you, and hold your hand through the process. We
don't just file the paperwork. However, there is some work that you must do
on your own and, if you read this manual thoroughly, you should be able to
make the most of your bankruptcy without too much help from us.
33) When should I file tax returns if I am going
to file bankruptcy? If I file in December do I keep my refund? If
you are considering filing a bankruptcy, you must file your tax returns. No
file returns…. no file bankruptcy. If you can get your refund before you
file. If you do and spend it, you will keep your refund no matter how much
it is. You have a general exemption (in Kentucky) that can protect a
refund. If you get your refund after you file bankruptcy, and the refund is
over the exemption, you may lose part of your refund. File a quick refund
if you have to or apply any refund amount to next year’s tax debt. If you
are considering filing in the later part of the year, file before December.
If you file in January, you may have to wait for some time after you get
your refund back. You will be asked when you got your refund and how you
spent it if you got a large refund. We strongly suggest filing long before
December, rather than filing in December or January. Some trustees start
claiming tax refunds in November.
34) What will happen to my house and car?
Usually, you keep them. If your equity is less than or equal to your debt
and exemption for the property, you keep the property. You are allowed to
keep a certain amount of property in bankruptcy. When we prepare your
bankruptcy we will tell you if you are at risk of losing property. At the
time of filing, all your property that is not exempt belongs to the Court.
The idea is to exempt it all so that you keep it all. Of course, the law
concerning what property you can keep varies from state-to-state. See the
state exemptions in Section 10. We can provide you with the exemptions for
your state if they are not listed.
35) Do I have to keep up the insurance on my
vehicle? Will my rates be affected or will I be dropped? If you
fail to keep full coverage insurance on your vehicle paid for three months,
the Creditor may automatically pick up your vehicle according to the local
rules in the Western District of Kentucky. Other jurisdictions have similar
rules.
36) Can a Creditor be forced into a
reaffirmation or agreement to allow me to keep property in a Chapter 7? Can
a Creditor be forced into redemption? No, a Creditor can’t be
forced into a reaffirmation or work out. A Creditor can be forced in
redemption.
If the bank does not agree to a workout, it will
usually take a large loss from selling the vehicle at an auction, or the
house in a foreclosure. It may even violate federal lending rules by
refusing to workout a home mortgage. A bank is able foreclose or repossess,
regardless of whether you are in a bankruptcy. If they have started a
foreclosure, the filing of the bankruptcy stops the foreclosure but, in a
Chapter 7, the bank may file a motion with the Bankruptcy Court and ask to
foreclose anyway. If a Chapter 13 offers a good repayment plan, the Court
will not approve any foreclosure. If the bank is adamant that it wants the
house or car back, it may do so in a Chapter 7 and take a loss. Normally,
the bank will rethink their decision and give you one more chance to make
payments, but no one can force them to.
A redemption is an agreement to pay the bank what the
security is worth in one lump sum. They cannot refuse the redemption after
the judge orders it.
37) Can I choose which Creditors I repay?
Yes, you can pay one Creditor, but not another, after the bankruptcy. By
doing this, you can keep one car, but not another, or keep a credit card,
but let a lemon auto go back.
38) Can I revoke a reaffirmation? Yes,
but it must be revoked within 60 days of the 341 hearing or before
discharge, whichever comes first. It should be revoked in writing and sent
by certified mail so you have proof.
39) I want my house or car to go back. Will I
lose it immediately? No. You will normally have until the 341
hearing to return your car and owe nothing until then. Use that period of
time to look for another vehicle you can afford.
If you choose to let your house go back, you will
normally have about a year to live in it rent free for some period of time.
The shortest period for a foreclosure is about 6 months, and we have seen it
take up to 2 years. Consider filing an answer to a foreclosure to stay in
the home longer. Remember, a repossession will normally do a lot more
damage to your credit than a bankruptcy. Filing a Chapter 13 to catch up on
your payments (within 2 years) is one way to keep your home. The only good
reasons to let your house go back are that you have a large amount of
negative equity in it, a bad mortgage or that it is an overwhelming burden.
40) Will I lose my 401(k) or retirement fund?
No, your retirement is completely exempt and protected under
Kentucky law. Other states have other exemptions to protect retirement
plans. However, you should talk to a qualified Attorney to get his
opinion. The United States Supreme Court has held that pension plans,
401(k) plans, and other “ERISA-qualified plans” are generally excluded from
the Bankruptcy Estate under 11 U.S.C. sec. 541(c)(2). Unlike 401(k) plans,
IRA accounts are not ERISA-qualified plans. However, in Kentucky and
most other states, an IRA may be excluded from the Bankruptcy Estate or
otherwise exempt because of a state statute. Some Bankruptcy Court judges
have held that an IRA may be partially exempt under 11 U.S.C. sec.
522(d)(10)(E).
41) I have a personal injury lawsuit—will I lose
those funds? In Kentucky, you can keep up to about $18,500 as an
exempted amount of a personal injury lawsuit that you have pending if both
are injured you may keep 37,000. Other states have different rules.
42) XYZ finance company took my Household Goods
as collateral. Do I have to turn them over? Well, it is possible
that you may be able to avoid such liens, if they are old enough and if you
have not borrowed within a certain time before filing bankruptcy. Also you
should consider a redemption.
43) I was just sued and they have just attached
my paycheck or bank account what can I do? If property was taken
from you just before filing bankruptcy, and it was over $600, it can
normally be gotten back. Liens on property that were from a lawsuit can be
removed. Garnishments and foreclosures can be stopped. The sooner you seek
help, the sooner you can stop the procedure. It is important to seek help
as quickly as possible.
44) Am I liable for the taxes on items gave up
in Bankruptcy Court? No. People often give up cars and then the
new owner fails to pay the tax on the car and licenses it in another state.
In such cases, the tax bills will continue to be sent to the Debtor even
though he gave up the property. To correct this in Kentucky, we file an
affidavit with the County Clerk’s office to correct the matter, attaching
the discharge as proof that the Debtor did not have the car after the date
of the discharge.
45) If the Trustee doesn't want the property,
can I have it? Yes. But if you hide an asset you have committed
fraud and you lose hidden assets.
46) How long do I have to repay in a Chapter13?
You can s-t-r-e-t-c-h out your payments and take up to 5 years, but no
longer than 60 months, to repay in a Chapter 13. Kentucky local rules,
require that you can only take up to 2 years to catch up overdue payments to
stop a foreclosure or repossession.
47) What happens if I quit making my payments in
a Chapter 13? Your Chapter 13 will be dismissed from Court, and you
will go back to owing the original debt and being unprotected. You will not
be able to re-file for 6 months.
48) Can I reduce my monthly payments in a
Chapter 13? Yes, a Chapter 13 can reduce your monthly payments. It
can also reduce your interest rates to 12%, 10%, or even 0% on tax, secured,
and unsecured debts.
49) Do I have to pay back 100% of what I owe in
a Chapter 13? No. You can repay as little as 10% to your unsecured
Creditors in a Chapter 13. Your Chapter 13 must pay at least what a Chapter
7 would have paid. In some states and after 10-2005 certain plans may pay
much less than 10% if that is all you can afford. You must repay your
disposable income.
50) Can I pay some Creditors and not others in a
Chapter 13? You can’t (shouldn’t) discriminate and pay one
unsecured Creditor class differently than other unsecured Creditors in that
class. However Secured unsecured and priority debts are paid differently.
51) Should I try a Debt Counseling Service
instead of filing bankruptcy? How do Debt Counseling services work?
"Debt Counseling Services" are often high-interest loan companies. Other
times, they are agencies that pocket 10-50% of the monthly money that you
pay to them as fees for their "counseling". Most of these services will
combine your bills and send a partial payment to each bill that you owe.
Your credit will be listed by the credit card companies as delinquent for
sending in partial payments, and the reduced amounts sent in may not even
cover the interest that a debt charges. These "Counseling Services" are
often simply rip-offs that pretend to be charities or helping agencies.
If you pay a debt counseling service $100 a month, what
happens is that they take up to $40 for themselves and then send your
Creditors $60. Your bills fall even farther behind. Eventually, Creditors
file lawsuits and you are forced into bankruptcy anyway. Very few of
these "repayment plans" work and over 90% fail, leaving you worse off.
Another scam is that some debt counseling companies will charge thousands of
dollars by promising to find you a consolidation loan as a loan broker or
mortgage broker. These loans end up being at a high-interest rate or they
pocket your money and never give you the loan. Others strip the equity from
your home. Whatever method used, "Debt Counseling Services" are often scams
meant to take your money when you are already in trouble.
Also be wary of using services that claim to “repair”
your credit file. Some may attempt to create a new credit file by getting a
new social security number. Changing your identity is a felony, especially
if you steal another person’s identity. Creating a false identity and using
it may also be a felony.
52) How long should I keep a copy of my
Bankruptcy?
You should keep a copy of your bankruptcy, with your
tax papers, for at least 7 years. You will need them for any mortgage
application but they are now filed electronically and available for download
at any bankruptcy attorney’s office if you filed after October 2002. You
are only required to keep receipts 3 years by the tax department—after 3
years they have the burden of proof—but keep tax and bankruptcy records for
7 years anyway.
53) When will I be able to get credit again?
Normally, you will qualify for a home mortgage at normal rates within 2
years if you let your home go back in foreclosure you will qualify in 3
years after the discharge of your bankruptcy. You will be able to get other
credit within 6 months to a year. Your ability to get credit is based on
your income and your history of repayment, as well as the security you
offer. You should be able to purchase a car or house if you reaffirm one or
two debts and pay for them on time after your discharge. You always have to
be able to afford what you are buying on credit or meet credit standards.
You will have to reestablish your credit by paying on time after your
filing. In Kentucky, we will be happy to talk to you and recommend home
mortgage bankers and other services that will assist you in cleaning up your
credit file so that you can qualify for a home—or that work specifically
with bankrupt Debtors. There are also companies that lend to you while you
are in bankruptcy and just after bankruptcy. 722 Redemption Funding will
sell you a car at wholesale price (at about 21% interest), and they will
also finance the redemption of some cars at the wholesale book value.
54) Will my employer and landlord find out about
my bankruptcy? Bankruptcy petitions are public records; however,
under normal circumstances, no one will know you filed a bankruptcy petition
unless you tell them. Chapter 13 Debtors are often required to make
payments through wage garnishment, which means the employer will learn about
the bankruptcy.
55) Will this affect my getting an apartment?
Many of the larger apartment complexes are owned by banks, and banks tend to
grant leases according to credit bureau reports. This may affect you.
Small landlords will call former landlords and may not check credit
reports.
56) Can employers discriminate or fire me?
Generally no. There is an anti-discrimination section of the Bankruptcy
Code that prevents employers and the state of Kentucky from denying you
licenses or discriminating against you when hiring. But do yourself a
favor: Keep it to yourself. They generally won’t know unless you tell
them.
57) Are there bankruptcy crimes? Yes.
Criminal statutes related to bankruptcy can be found at 18 U.S.C. sections
151 to 157. Examples of bankruptcy crimes are knowingly and fraudulently
concealing assets, lying under oath or on bankruptcy schedules, and
knowingly and fraudulently filing a false proof of claim. Bankruptcy fraud
can also be used to support a RICO claim. Bankruptcy crimes are often the
result of claiming you don’t own property that you do own or that has been
transferred to conceal it from the Court.
58) Do I have to disclose all of my assets?
Yes. If you knowingly and fraudulently conceal an asset from the Court, you
have committed a felony and you can be fined up to $5000, imprisoned for up
to five years, or both. However, this is rare and normally comes up in only
the worst cases. In addition, the Court can deny discharge, or dismiss or
convert your bankruptcy proceeding.
59) Can I run up charges on my credit cards just
before filing? The official answer is “No”. Many people do make
some minor charges on their charge cards just before filing. Charges of
over $1000 on any one card within 90 days before filing are presumed to be
fraudulent and non-dischargeable. Luxury items of 500 within 90 and Cash
advances of 750 within 70 days are non-dischargeable. Charges to an account
more than 90 days before filing are presumed proper regardless of the
amount. But the rule that you cant charge within 90 days of filing isn’t
written in stone there are 12 factors that the judge will use to determine
if it is fraudulent.
There is no reason to pay any further on debts that you
are planning to avoid in bankruptcy. Normally, you should file as soon as
you can, but it won’t matter if you pay the bills or not before you file.
It doesn’t matter if you owed $10,000 or $10,000,000 before you filed or
whether or not you paid on time before you file bankruptcy.
60) Can I give property away just before filing?
Gifts of property over $600 just before filing are improper, and the
Court can go after that property and the person you gave it to. Gifts under
$600 are not improper. For example, give one gift of $900 to your child,
and that is improper. But, give two separate gifts of a $450 computer and a
450 car to go to college—even minutes apart—and that should be proper.
61) Can student loans or taxes be bankrupted?
(YES, in certain cases) If someone tells you it can't be
done, it often means that he doesn't know how to do it—or that he doesn't
want to do it. Student loans over 7 years old were dischargeable until
October 1998, but are no longer bankruptable in a Chapter 7 unless you get a
hardship discharge although this normally require disability or retirement
it is possible.
62) Can I bankrupt my utility bill?
Yes, but they may make you pay a deposit equal to one month's service to
keep service with them. Cable TV is the exception because it is a luxury not
a utility. Cable TV can discontinue service if you bankrupt their bill.
You won’t have to pay it but they don’t have to turn it back on until you
do.
If you include utilities in your bankruptcy, you need
to immediately advise your utility phone water gas and electric company that
you have filed and tell them your case number and the date you filed. If you
simply file a Chapter 7, don't pay, and don't contact them, you may end up
having your service turned off. It may be a month before the utility finds
out that you have filed, so if you list a utility advise them immediately.
63) Can bankruptcy stop a lawsuit? Yes,
but it will not stop criminal cases or criminal restitution. Criminal
restitution is not bankruptable.
64) Can I get my drivers license back?
If you have lost your license due involvement in an accident where you had
no or too little insurance, filing bankruptcy will restore your license. We
have the forms! Fax forms to 502-564-3250 in Frankfort
65) Can bankruptcy help with tax matters or high
rates and penalties? Yes, bankruptcy can get rid of income taxes,
reduce interests and penalties in a cram-down Chapter 13. You can include
taxes and student loans in a Chapter 13 repayment plan. Filing a Chapter 7
can also get rid of a tax lien if it impairs your equity in a property to
the amount that your exemption is impaired. For instance, let’s say you
have a $50,000 house, a $20,000 tax lien, and the mortgage is $42,000. Your
exemption is $5000, so the IRS’s lien could be reduced to $3000. If the
house is worth $45,000, the government would have no lien at all on the
house. A lien can be reduced to only the equity left in the home after your
exemption.
66) What are predatory lenders? Certain
Lenders don't care if you ever repay them not: They lend not on your
ability to repay, but instead based on the equity that they can steal from
your home or in their ability to overcharge you and then sell the very
profitable loan to another lender. When you fail to pay, they foreclose to
collect. They charge prepayment penalties, higher interest, and upfront
loan costs to get you the loan. They often use unfair lending tactics, like
flipping and packing, to increase income and then don't keep the loan but
sell it to another company. They target poor, elderly, minorities, and the
uneducated in advertising and overcharge heavily so that the loan can never
be paid off. Home improvement companies will sometimes use these mortgage
companies to process loans for home improvements that are poorly made (if
they are made at all), and the result is that you have signed away your home
for second-class home improvements. Predatory Lenders often overcharge for
filing fees, reporting costs, and closing fees, and then fail to report the
charges. If you are lucky, you will be able to sue them for
truth-in-lending violations and, perhaps, have a free home. The more they
steal or overcharge you, the more proud they are of doing it to you.
67) What if my question isn't answered here?
Send your question to the Law Offices of Nick C. Thompson, and we will try
to help you. Make sure you tell us where you live. Please keep in mind
that we can not provide legal advice over the Internet or answer questions
about state law (other than in Kentucky, and Indiana, where we are
licensed). This book is for informational purposes only. It will give you
ideas for questions to ask to your Attorney and help you to save thousands
of dollars. You must ask your Attorney about the issues specific to your
case. Most bankruptcy Attorneys, such as us, do provide free initial
consultations and can provide you with the guidance you need to decide
whether or not to file a bankruptcy petition and what you, specifically,
need to do.
68) I have a small retirement accounts is it
exempt? My regular stock brokerage cash account on the day of filing will
only have a minimal amount (if any) of cash and some shares of companies who
are bankrupt and as of the moment, the stock is worthless.
Normally retirement accounts can’t be taken by
creditors or the bankruptcy court. The question is whether or not this is a
retirement account. Just calling it a retirement account does not make it
one. Real retirement accounts can’t be assigned or attached. If it can be
easily spent by you, assigned, or attached it isn’t a retirement account for
purposes of the exemption. Of course putting large amounts of money into an
account just before filing (within 6 months) is wrong.
If the stock is worthless you can list it and if the
trustee abandons it then it will belong to you. However at the moment of
filing your Chapter 7 bankruptcy all your property technically belongs to
the Trustee.
69) I notice that you have a few more creditors such
as the IRS and utilities listed on my bankruptcy that I don’t owe.
This is just me covering all the bases and insuring that you bankrupt every
possible person. Yes you can bankrupt last month's bill and the worst they
can do is ask for a deposit equal to one month's service.
