Get Lights On After Bankruptcy in Texas | Your Rights + Real Options

The Big Picture: What Happens to Your Lights When You File

When you file bankruptcy, three things happen with your light bill:

Your Old Bill Gets Handled

Whatever you owed before you filed? That's now part of your bankruptcy case. In Chapter 7, it gets wiped out completely. In Chapter 13, it gets rolled into your payment plan. Either way, they can't keep hounding you for it.

You Get 20 Days of Protection

The moment you file, an "automatic stay" kicks in. For 20 days, no light company can cut you off for old bills. But here's the catch - by day 20, they can ask for a deposit to keep service going. 11 U.S.C. Section 366

New Bills Are On You

Any power you use AFTER filing? That's a new bill. Bankruptcy doesn't cover it. You gotta pay that as it comes, or they can shut you off just like anyone else who doesn't pay.

Chapter 7 vs. Chapter 13: What's Different for Your Lights?

Both types of bankruptcy protect your service and eventually clear the old debt. The main difference is timing.

7 Chapter 7 (Liquidation)

- Old light bill: Completely wiped out, usually in 4-6 months
- Protection: 20 days where they can't cut you off
- Deposit: Almost always required to keep service
- New bills: Pay 100% directly, not covered by bankruptcy

Best for: Getting a clean slate fast. Debt's gone in months, not years.

13 Chapter 13 (Payment Plan)

- Old light bill: Rolled into your 3-5 year payment plan, pay a portion
- Protection: 20 days where they can't cut you off
- Deposit: Required, usually paid outside the plan (upfront)
- New bills: Pay 100% directly, not covered by bankruptcy

Best for: Keeping assets while catching up on debt over time.

If You're in Chapter 13 - Stay Current

The automatic stay only protects old debt. If you fall behind on NEW light bills during your Chapter 13, they can still cut you off without asking the bankruptcy court. Those new bills are your responsibility.

Your Federal Protections (Section 366)

There's a specific part of bankruptcy law - 11 U.S.C. Section 366 - that deals with utility service. Here's what it says in plain English:

What Light Companies CAN'T Do

- Refuse you service just because you filed bankruptcy
- Cut you off for old bills during the first 20 days after you file
- Demand more than "adequate assurance" (in Texas, that's capped at about 2 months' bills)
- Keep trying to collect debt that was discharged

What Light Companies CAN Do

- Ask for a deposit (even if you never had to pay one before)
- Cut you off after day 20 if you don't provide "adequate assurance"
- Disconnect for non-payment of NEW bills (the ones after you filed)
- Run a credit check when you apply for new service

Texas Rules: What Deposits Can They Actually Charge?

Texas has its own rules through the Public Utility Commission (PUCT) that limit how much light companies can ask for. PUCT Rule 25.478

The Deposit Cap

In Texas, a light company can't ask for more than the greater of:

1. One-fifth (1/5) of your estimated annual bill, OR
2. Two months of estimated bills

Example: If your average bill is $150/month, the deposit can't be more than about $300. If they're asking for $500+, that's against the rules.

Getting Your Deposit Back

Here's something to look forward to: PUCT rules say the light company has to refund your deposit (usually as a bill credit) after 12 months of on-time payments. You also get interest on that deposit while they hold it.

So yeah, the deposit stings now. But it's not gone forever - it's more like forced savings you get back next year.

Timeline: Filing to Stable Lights

Here's what typically happens and when:

Filing Day

Automatic stay kicks in. Light company can't cut you off for old bills starting now.

1-5

Days 1-5: Notify Your Light Company

Call them. Give them your case number. Ask for the "bankruptcy department" if they have one.

1-20

Days 1-20: The Deposit Letter Arrives

They'll send something asking for "adequate assurance" - that's the deposit. Figure out if you can pay it or if you need to go pay-as-you-go instead.

Day 20: DEADLINE

If you haven't paid the deposit or switched to pay-as-you-go by now, they CAN cut your lights. Don't let this sneak up on you.

1-12

Months 1-12: Rebuild Mode

Pay every bill on time. Whether you're on pay-as-you-go or regular service with a deposit, consistent payments are building your track record.

Month 12: Deposit Refund

If you paid a deposit, request it back. 12 months of on-time payments = you get your money (plus interest). If you're on pay-as-you-go, you can now get a letter of credit to qualify for regular rates.

Which Light Companies Work With Bankruptcy Filers?

In Texas, you've got two main paths: pay-as-you-go (no credit check) or traditional plans (they'll run credit).

Type	Bankruptcy Policy	Deposit	Best For
Pay-As-You-Go	Friendly - no credit check. Bankruptcy doesn't matter.	None. Just $40-75 startup balance.	Getting lights on TODAY. Avoiding deposits entirely.
Traditional Plans	Will run credit. Bankruptcy triggers deposit requirement.	Yes - typically $200-400 (2 months estimated).	Lower rates if you can afford the deposit upfront.

Pay-As-You-Go Light Companies

Companies like Payless Power don't run credit checks at all. They don't care about bankruptcy. You pay upfront (around $40-75), and that money goes straight toward your power - not a deposit. Approval is instant, lights can be on today.

The catch: rates are higher (30-50% more than traditional). Think of it as a bridge, not forever.

Traditional Light Companies

TXU, Reliant, Gexa, Green Mountain - these will check your credit. A bankruptcy will flag. They'll ask for a deposit.

Good to know: Some have deposit waivers for seniors (55+), victims of family violence, or medically vulnerable customers. Ask about these if they apply to you.

Real Situations, Real Answers

"I'm about to file - should I get my lights set up first?"

Yes, if you can. It's easier to be an existing customer when the bankruptcy hits than to open a new account with a fresh bankruptcy on your record. They can still ask for a deposit after you file, but you avoid the hassle of starting from scratch while everything's in flux.

"I just filed and need to move - can I get lights at my new place?"

Yes, but expect a deposit. Your bankruptcy's now on your credit report. Traditional light companies will see it and ask for $200-400 upfront. If that's too much right now, go pay-as-you-go - Payless Power and others don't check credit at all.

"My bankruptcy discharged 2 years ago - why am I still paying deposits?"

Credit report timing. Bankruptcy stays on your report for 7-10 years, and light companies use that to decide on deposits. But here's the workaround: if you've paid ANY utility on time for 12 months (lights, water, gas, anywhere), get a "letter of credit" from them. Show that to the new light company and they often skip or lower the deposit.

"My old light company says I still owe, but that debt was discharged."

That's not allowed. If they're trying to collect a discharged debt, they're violating federal law. Send them your discharge papers. If they keep it up, file a complaint with the PUCT (1-888-782-8477) and tell your bankruptcy attorney - the court can sanction them.

"There's a switch hold on my address from the old discharged debt."

It needs to be removed. Call the old light company's collections department. Tell them the debt was discharged in bankruptcy and you need the switch hold released. You'll need to send proof - your discharge papers or a letter from your attorney. If they drag their feet, file a PUCT complaint.

The Path Forward: Rebuilding After Bankruptcy

Bankruptcy's a reset. Here's how to use it to actually get ahead:

Start With Pay-As-You-Go If Needed

Can't afford a deposit right now? Pay-as-you-go gets your lights on today with no credit check. Yes, rates are higher. Treat it like a bridge, not your forever plan.

Pay Every Bill On Time

Whether you're on pay-as-you-go (keep that balance positive) or traditional service (pay by the due date), consistent payments are building your track record. This matters for what comes next.

At 12 Months, Get Your Letter of Credit

After a year of on-time payments, call your light company and ask for a "letter of credit." This proves you're reliable - even if your credit score doesn't show it yet.

Switch to Better Rates

Use that letter of credit to apply for a traditional plan. Many light companies will waive or reduce the deposit with proof of good payment history. You're now paying less for the same power.

Special Deposit Waivers

Some people can skip deposits regardless of credit or bankruptcy:

- Seniors (55+): Waiver available if you don't have a delinquent balance with the current light company
- Victims of family violence: Waiver with certification letter
- Medically vulnerable: Waiver with proof of medical necessity

Ask specifically about these when you call. Not every rep knows about them.

If a Light Company Gives You Trouble

Know your rights, and don't be afraid to use them:

Steps to Take

Call them first. Ask for the bankruptcy department or special handling. Fax or email your Notice of Bankruptcy Filing (Form 309A).

Know the law. Mention "11 U.S.C. Section 366" and that you're within your 20-day protection period (if you are).

File complaints if needed. PUCT handles Texas utility issues: 1-888-782-8477. For discharge violations, contact your bankruptcy attorney.

Frequently Asked Questions

Can they cut my lights off if I file bankruptcy?

Not right away. Federal law gives you 20 days of protection after you file. During that time, no light company can shut you off for old bills. But you'll probably need to put down a deposit by day 20 to keep service going. And you still have to pay any new bills that come after you file.

Does bankruptcy wipe out what I owe my light company?

Usually, yes. In Chapter 7, your old light bill gets wiped out completely - typically within 4-6 months. In Chapter 13, it gets rolled into your payment plan and you pay a portion over 3-5 years. Either way, they can't keep coming after you for it once it's discharged.

Can a light company say no because I filed bankruptcy?

They can't refuse you service just because you filed. That's federal law. But they CAN ask for a deposit - and in Texas, that's usually about 2 months of estimated bills ($200-400). If you can't swing the deposit, pay-as-you-go is always an option with no credit check at all.

What's this "adequate assurance" thing I keep hearing about?

It's a fancy legal term that basically means deposit. When you file bankruptcy, light companies are allowed to ask for money upfront to protect themselves. In Texas, they can't ask for more than about 2 months worth of estimated bills.

I have a switch hold from an old bill that got discharged. Now what?

Call that light company and tell them the debt was discharged in bankruptcy. You'll need to send them proof - your discharge papers or a letter from your attorney. They have to remove the hold. If they give you trouble, file a complaint with the PUCT at 1-888-782-8477.

My bankruptcy was years ago but they still want a deposit. Why?

Bankruptcy stays on your credit report for 7-10 years, and most light companies check credit when you sign up. The good news: if you've been paying ANY utility on time for 12 months, you can get a letter of credit to skip or lower the deposit. Or just go pay-as-you-go - they don't check credit at all.

This guide is for informational purposes only and does not constitute legal or financial advice. Bankruptcy is complex - always consult with a qualified bankruptcy attorney for your specific situation. For official utility rules, visit the Public Utility Commission of Texas. NoDepositLights.com is powered by Compare Power (PUCT License BR190020).