With the uncertainty that has been a way of life for Wisconsinites over the past year, paying for everyday expenses has become a challenge for many. If you have been unable to pay utility costs, you probably have not had to worry about losing your services. After all, Wisconsin has had a moratorium on utility disconnections since March 24, 2020.
That moratorium is coming to an end. The Public Service Commission recently voted unanimously to end the disconnection moratorium on April 15, 2021. After that date, utility companies may disconnect services for customers who are behind on their utility bills.
Your debt-to-income ratio
If you cannot pay for utility services, you may want to calculate your debt-to-income ratio. This is essentially how much debt you have relative to your income.
To calculate the ratio, add up all your monthly bills and divide them by your gross monthly income. If your calculation reveals a debt-to-income ratio above 43%, you may have too much debt to stay on top of your financial obligations.
Bankruptcy relief
Even though Wisconsin’s moratorium on disconnecting utility services is coming to an end, you may have an option for maintaining service.
When you file for bankruptcy protection, utility companies typically may not shut off vital services. Furthermore, your bankruptcy filing may discharge many of your outstanding debts, potentially leaving you with more money to pay utility bills in the future.
Ultimately, you simply cannot live without utilities. If you are facing disconnection of your services, understanding your financial situation and looking for debt relief may help keep your utilities on.
