Moving to a new home can be stressful enough without having to worry about unpaid utility bills at your old place. If you move out and leave electric, gas or water bills unpaid, it can create some serious consequences. In this guide, we’ll cover what can happen if you fail to pay your utility bills when vacating a property.
Utility Companies Will Want Payment
First and foremost, the electric, gas and water companies will expect full payment of any outstanding balance you owe. Utility services are provided based on the agreement that you pay for what you use each month. The utility companies have a right to pursue collection of unpaid bills, even after you move.
Leaving bills unpaid may result in
- Past due notices and phone calls requesting payment
- Disconnection of service at your new address
- Being sent to collections agency
- Potential damage to your credit score
The utilities will use all normal methods to collect your debt, just like any other unpaid bills you may owe
Service Disconnection at New Address
Most utility providers share information on customer payment histories. If you failed to pay bills at your last address, the new utility company may refuse to connect service until you clear the debt.
You may experience disconnection or refusal of:
- Electricity service
- Natural gas service
- Water and sewer service
- Landline phone service
Without utility services, it’s difficult to live in a new home. This can create a major incentive to pay off your past due balance.
Landlord Will Be Responsible
If you were renting, the landlord will become responsible for paying any utility bills you leave unpaid. They may face service disconnection even though they were not the actual customer.
The landlord can then:
- Deduct the amount from your security deposit
- Send your account to collections to recover funds
- Take legal action to obtain a judgement against you for the unpaid bills
You create a messy situation for the property owner when you stick them with your utility debt. Expect an angry landlord along with pursuit of the money owed.
Damage to Your Credit Score
Just like any other type of bill you don’t pay, unpaid utility accounts can end up as negative items on your credit report. This commonly occurs when an account is placed with a collection agency.
Late payments and collections damage your credit score as follows:
- Up to 30 days late – Little impact
- 30-60 days late – Moderate impact
- 60-90 days late – Major impact
- Collections – Severe impact
Poor credit score makes it harder to qualify for loans, credit cards, rental housing, cell phone plans, and more. A financial mess can follow you if utility debts are mishandled when moving.
Legal Action Could Be Taken
For very large unpaid utility bills, the service provider may choose to take legal action against you. This can result in:
- Being taken to small claims court
- Having a judgement filed against you
- Potential wage garnishment
- Property liens
Lawsuits and property liens become public records that further damage your credit and financial reputation. Don’t let an untreated utility debt escalate to the point of legal intervention.
Strategies for Handling Utilities When Moving Out
To avoid hardship from unpaid utility bills, use these tips when changing addresses:
- Notify companies several weeks before move out date
- Request final bill to be sent ASAP
- Provide forwarding address to receive final bill
- Pay final bill by move out date
- Cancel services effective on move out date
Following proper cut-off procedures can help avoid headaches. Work closely with each utility provider for a smooth transition.
If unable to pay in full, ask about payment plan options before leaving the property. Leaving the new resident or landlord stuck with your bills causes much bigger problems.
What If You Can’t Afford to Pay?
For low-income households struggling with utility bills, assistance programs are available in most states. Explore options like:
- LIHEAP – Provides federal energy bill assistance
- State welfare programs
- Local non-profit and church programs
- Payment matching or bill reduction through utility companies
oolRelief from full payment may be possible in cases of genuine financial hardship. Reach out for help to avoid service disconnection. Disclosing inability to pay bills is better than simply ignoring them and moving.
Don’t Abandon Unpaid Utility Debts When Moving
A smooth transition when changing addresses means properly closing utility accounts and paying final bills. Failure to pay electric, gas, water and other utility bills can trigger significant repercussions like collections, credit impacts, refusal of service at your new home and legal action. Work with providers, seek assistance if needed and take responsibility for any outstanding balances you owe. Wise resolution of utility bills will prevent lasting money and credit problems after you move.
How do I apply for AMP?
You can apply for AMP when you apply for LIHEAP. If you are already in LIHEAP, you can apply for AMP directly through your electric company. If you get your electricity through Central Maine Power, they have their own online AMP application. Call your utility company and ask to sign up for AMP. Or you may be able to find the application form on the company’s website.
Who can be in the program?
To sign up for AMP:
- You must be enrolled in the Low-Income Home Energy Assistance Program (LIHEAP). If you are not enrolled, you must apply for, and be accepted into, LIHEAP before you can apply for AMP.
- You must owe your electric company $500 or more. Also, you must be more than 90 days late on what you owe.
- Your electric bill debt must be for your home (not a business). Your home must be your year-round home (not a seasonal home).
To stay in the program after you sign up:
- You must pay your regular monthly bill. If you do not make your regular payments, then you may get kicked off the program. You may not be able to get back on the program. So you need to pay your regular monthly bill.
- You must work with your utility company to see if there are ways you can reduce how much electricity you use. This is a free program.
What Happens If I Don’t Pay My Electric Bill? (Worst Case Scenario)
FAQ
Does an unpaid electric bill affect credit?
The Takeaway. The three main credit bureaus don’t count rent, phone, electric, and other utility bills as credit accounts, so one late payment or on-time payments won’t usually affect your score.
What happens if you don’t pay your consumer’s energy bill?
If you don’t pay they shut it off – all of it. You have the opportunity to set up a payment agreement so that doesn’t happen. That’s much better than having to pay the full bill plus a fee to get it back on.
How late can you be on your electric bill before they shut it off in California?
Shut-Off TimelineDays from Bill Issue DateAction TakenDay 27$10 late fee assessed on unpaid amounts. Day 3610-day shut-off notice sent and $15 late fee assessed. Day 4448-hour shut off notice sent. Day 46Utilities shut-off.
Are landlords responsible for unpaid utility bills in California?
Legally, unpaid utility bills are the responsibility of whoever’s name is on the bills. If your tenants pay you directly for utilities and you pay the bills, you would have to pay these fees.
What if I can’t pay my utility deposit?
The company will hold the deposit in case you can’t pay in the future. If you’re in danger of losing utility service, your first step is to contact your utility company. The customer service rep should be able to point you in the direction of state, local, and federal resources that can help you keep your services.
What happens if a utility company shuts off?
But the utility company can turn off your services if you don’t pay your bill or make the required deposit, if you don’t make payments on time, or if you don’t let the utility company use its equipment. As a general rule, your utility company must send you a notice and try to get in touch with you before your service is cut off.
Can a utility company provide services if a customer doesn’t pay?
Yes. A lot of people think that if a customer doesn’t pay their bill, the utility company still has to provide services. This isn’t true, but there are safeguards in place to keep life-saving services going—more on that below.
Can a landlord cut off your utilities?
A landlord cannot, however, cut off your utilities as a way to force you out. There should be a “utilities” or “repairs and utilities” clause in a lease or rental agreement that spells out who pays for what services and bills. Typically, landlords pay for garbage and sometimes water (if there is a yard).
Can a ll let an apartment sit empty while you pay bills?
In other words, the LL can’t just let the apartment sit empty while you pay the bills. Enter your zip code to see attorneys available in your area. Unfortunately, you still have to follow the rules of your lease until November, even though you moved out one month early.
Should I file for bankruptcy if I’m behind on my utility bills?
If you are behind on all your bills, filing for bankruptcy might be worth considering. Getting rid of all your debt, including your past-due utility bills, will not only give you more money each month, but the utility company won’t be able to cut you off while you’re in bankruptcy.
