When it comes to filing Chapter 7 bankruptcy, debts incurred before filing are called pre-petition debts, that debtors are discharged from, whereas debts incurred after a filing are post-petition payments, which debtors still must pay on.

It can be challenging to determine a pre-petition debt versus a post-petition payment. For example, mortgage payments, car loans, and other secured installment debt are usually due monthly, but since the loan was presumably taken out before the filing, the entire debt is considered a pre-petition obligation.

When it comes to post-petition payments to utilities, the Bankruptcy Code requires debtors to furnish adequate assurance of payment to the utility within 20 days of the petition date. The purpose of this policy is to prevent the threat of termination from being used to collect pre-petition debts while not forcing the utility to provide services for which it may never be paid.

Bernstein-Burkley’s Bankruptcy and Restructuring group provides substantial knowledge and research on the topic of pre-petition debts versus post-petition payments, and is ready to help creditors and debtors through the process.

Contact our team at Bernstein-Burkley today at 412-456-8100 to see how we can assist you in Bankruptcy and Restructuring services.