Bankruptcy and Utility Bills in Ann Arbor
Facing bankruptcy can be one of the most challenging experiences in a person’s life, bringing a whirlwind of financial uncertainty and emotional stress. In Ann Arbor, Michigan, individuals going through bankruptcy know that utility bills can quickly become a source of anxiety, especially when faced with the looming threat of disconnection due to escalating arrears.
Overview of Utility Services in Ann Arbor
Utility services are essential for daily life, providing residents with water, electricity, gas, and other necessary amenities. In Ann Arbor, the availability and management of these services can significantly impact residents, especially during financial hardships like bankruptcy.
Key Utility Providers
- Water Services: The City of Ann Arbor manages its water supply, ensuring access to clean and safe drinking water for all residents.
- Electricity: DTE Energy is the primary provider of electricity in Ann Arbor, supplying power to homes and businesses across the city.
- Natural Gas: Consumers Energy is the main natural gas provider, offering heating and cooking gas to residents.
- Internet and Telecommunications: Several companies, including AT&T and Xfinity, provide internet and phone services, which are increasingly vital for communication and remote work.

Ann Arbor Utility Resources
Utility services are fundamental to maintaining a stable and comfortable living environment. Access to water, electricity, and gas is not just a convenience; it is critical for health, safety, and quality of life. Utility Assistance in Ann Arbor
If you’re struggling to pay your utility bills, several local programs can help. Below are resources available for Ann Arbor residents:
1. Washtenaw County Community Action
Program: Utility Assistance for low-income households
Contact: (734) 544-300
2. Michigan Energy Assistance Program (MEAP)
Program: Energy bill assistance for low-income households
Contact: Call 211 or visit Michigan 2-1-1 for local providers
3. DTE Energy Assistance
Program: Assistance with energy bills for DTE customers
Contact: (800) 477-4747
4. Consumers Energy Assistance
Program: Assistance for Consumers Energy customers
Contact: (800)477-5050
5. Salvation Army of Washtenaw County
Program: Emergency utility assistance (when funds are available)
Contact: (734) 971-9781
6. United Way 2-1-1
Program: Free, confidential helpline for utility assistance info
Contact: Dial 2-1-1 or (800) 552-1183

Impact of Bankruptcy on Utility Bills
Bankruptcy can have significant implications for your utility bills and services, influencing everything from payment obligations to service continuity.
A. Discharging Past Due Utility Bills
- Chapter 7 Bankruptcy: Most unsecured debts, including overdue utility bills, are generally dischargeable, allowing individuals to eliminate past due amounts such as electric, gas, and internet bills.
- Chapter 13 Bankruptcy: Overdue utility bills can be discharged, but they are typically paid after higher priority debts, such as child support or taxes. Any balance remaining after completing the repayment plan will also be discharged.
B. Ongoing Payment Obligations
- Responsibility to Pay: Despite the protections bankruptcy offers, debtors must continue to pay for any utility services used after filing. Failing to keep up with these payments can result in service disconnection.
- Impact on Creditworthiness: Keeping current on utility bills during and after bankruptcy is necessary for rebuilding credit. Failure to pay ongoing utility bills can negatively affect future service applications and credit ratings.
C. Utility Deposits and Fraud Considerations
- Deposits: While utility providers cannot refuse service due to a bankruptcy filing, they may require a security deposit based on the debtor’s creditworthiness.
- Fraud Claims: In rare cases, if a utility company can demonstrate that a debtor committed fraud, that particular debt may not be included in the bankruptcy discharge.

When you are approaching a bankruptcy filing, you may have concerns about how to continue covering your utilities. Contact Frego & Associates for bankruptcy help today and discuss how to stay current on utility payments throughout the process.