United States Code
11 U.S.C. § 366 — Utility service
Section 366 addresses electricity, gas, water, and similar utility service when a bankruptcy case is filed. Subsection (a) bars a utility from altering, refusing, or discontinuing service, or discriminating, solely because the case was commenced or because a pre-petition bill went unpaid. Subsections (b) and (c) set the exception: the utility may act if it does not receive adequate assurance of payment for future service within the stated period.
Losing power, water, or heat is one of the first fears people have when they file. Section 366 is the part of the Bankruptcy Code that speaks directly to that — it limits what a utility may do because of the filing itself, and it sets a short deadline for providing security for future service. Because the deadline runs in days, this is one of the sections worth reading early rather than later.
Can the utility shut off my power just because I filed bankruptcy?
Subsection (a) answers this directly. It states that, except as provided in subsections (b) and (c), a utility may not alter, refuse, or discontinue service to the trustee or the debtor, and may not discriminate against them, solely on the basis that a case was commenced under title 11 or that a debt owed to the utility for service rendered before the order for relief was not paid when due. Two things are worth noticing in that sentence. First, the protection is tied to the word "solely" — subsection (a) speaks to action taken on those two grounds. Second, subsection (a) opens by pointing to subsections (b) and (c), which set out when a utility may act. So subsection (a) is not the whole rule; it is the general statement that the following subsections qualify.
What is "adequate assurance of payment" and when is it due?
Subsection (b) provides that a utility may alter, refuse, or discontinue service if neither the trustee nor the debtor, within 20 days after the date of the order for relief, furnishes adequate assurance of payment in the form of a deposit or other security for service after that date. Note what the assurance covers: service going forward, after the order for relief — not the older unpaid balance described in subsection (a). Subsection (c)(1)(A) then defines the term for purposes of that subsection, listing a cash deposit, a letter of credit, a certificate of deposit, a surety bond, a prepayment of utility consumption, or another form of security mutually agreed on between the utility and the debtor or the trustee. Subsection (c)(1)(B) adds a limit: an administrative expense priority does not constitute an assurance of payment.
What if the deposit the utility wants is too large?
The section contemplates that the amount can be contested. Subsection (b) states that on request of a party in interest, and after notice and a hearing, the court may order reasonable modification of the amount of the deposit or other security necessary to provide adequate assurance of payment. Subsection (c)(3)(A) provides a parallel path for the amount of an assurance of payment under paragraph (2). Subsection (c)(3)(B) then restricts what the court may weigh in deciding whether an assurance is adequate under that paragraph: it may not consider the absence of security before the petition date, the debtor's timely payment of utility charges before the petition date, or the availability of an administrative expense priority. In other words, a long record of paying on time is expressly outside what the court considers under that paragraph.
Are the rules different in a chapter 11 case?
Yes, and subsection (c)(2) is where the difference appears. It provides that, with respect to a case filed under chapter 11 and subject to paragraphs (3) and (4), a utility referred to in subsection (a) may alter, refuse, or discontinue utility service if during the 30-day period beginning on the date of the filing of the petition the utility does not receive adequate assurance of payment that is satisfactory to the utility. Two differences from subsection (b) stand out on the face of the text: the period is 30 days measured from the petition filing date rather than 20 days from the order for relief, and the assurance is described as satisfactory to the utility. Paragraph (3) is the counterweight, since it lets a party in interest ask the court to modify that amount.
What happens to a security deposit I already gave the utility?
Subsection (c)(4) addresses deposits made before the case. It provides that, notwithstanding any other provision of law, with respect to a case subject to that subsection, a utility may recover or set off against a security deposit provided to the utility by the debtor before the date of the filing of the petition, without notice or order of the court. That is a narrow but practical point: money already sitting with the utility as a pre-petition deposit is treated differently from other property, and the text does not require the utility to seek court permission first. If you gave a deposit when service was first connected, it is worth locating that record before the deadlines in subsections (b) and (c)(2) run.
This summary is our plain-English explanation, written to help you find the right part of the text below. The section itself is the authority — where the two differ, the text controls.
Text of 11 U.S.C. § 366
Reproduced in full from the official source, verified as of July 2026. View it at the source.
(a) Except as provided in subsections (b) and (c) of this section, a utility may not alter, refuse, or discontinue service to, or discriminate against, the trustee or the debtor solely on the basis of the commencement of a case under this title or that a debt owed by the debtor to such utility for service rendered before the order for relief was not paid when due.
(b) Such utility may alter, refuse, or discontinue service if neither the trustee nor the debtor, within 20 days after the date of the order for relief, furnishes adequate assurance of payment, in the form of a deposit or other security, for service after such date. On request of a party in interest and after notice and a hearing, the court may order reasonable modification of the amount of the deposit or other security necessary to provide adequate assurance of payment.
(c)(1)(A) For purposes of this subsection, the term "assurance of payment" means—
(i) a cash deposit;
(ii) a letter of credit;
(iii) a certificate of deposit;
(iv) a surety bond;
(v) a prepayment of utility consumption; or
(vi) another form of security that is mutually agreed on between the utility and the debtor or the trustee.
(B) For purposes of this subsection an administrative expense priority shall not constitute an assurance of payment.
(2) Subject to paragraphs (3) and (4), with respect to a case filed under chapter 11, a utility referred to in subsection (a) may alter, refuse, or discontinue utility service, if during the 30-day period beginning on the date of the filing of the petition, the utility does not receive from the debtor or the trustee adequate assurance of payment for utility service that is satisfactory to the utility.
(3)(A) On request of a party in interest and after notice and a hearing, the court may order modification of the amount of an assurance of payment under paragraph (2).
(B) In making a determination under this paragraph whether an assurance of payment is adequate, the court may not consider—
(i) the absence of security before the date of the filing of the petition;
(ii) the payment by the debtor of charges for utility service in a timely manner before the date of the filing of the petition; or
(iii) the availability of an administrative expense priority.
(4) Notwithstanding any other provision of law, with respect to a case subject to this subsection, a utility may recover or set off against a security deposit provided to the utility by the debtor before the date of the filing of the petition without notice or order of the court.
(Pub. L. 95–598, Nov. 6, 1978, 92 Stat. 2578; Pub. L. 98–353, title III, §443, July 10, 1984, 98 Stat. 373; Pub. L. 109–8, title IV, §417, Apr. 20, 2005, 119 Stat. 108; Pub. L. 116–260, div. FF, title X, §1001(h), Dec. 27, 2020, 134 Stat. 3221.)
Notes and amendment history
Published by the official source alongside the section above. These notes record how the text has changed over time and the reasoning behind those changes. They are not the operative rule — the enacted text is the section itself.
Historical and Revision Notes
legislative statements
Section 366 of the House amendment represents a compromise between comparable provisions contained in H.R. 8200 as passed by the House and the Senate amendment. Subsection (a) is modified so that the applicable date is the date of the order for relief rather than the date of the filing of the petition. Subsection (b) contains a similar change but is otherwise derived from section 366(b) of the Senate amendment, with the exception that a time period for continued service of 20 days rather than 10 days is adopted.
senate report no. 95–989
This section gives debtors protection from a cut-off of service by a utility because of the filing of a bankruptcy case. This section is intended to cover utilities that have some special position with respect to the debtor, such as an electric company, gas supplier, or telephone company that is a monopoly in the area so that the debtor cannot easily obtain comparable service from another utility. The utility may not alter, refuse, or discontinue service because of the nonpayment of a bill that would be discharged in the bankruptcy case. Subsection (b) protects the utility company by requiring the trustee or the debtor to provide, within ten days, adequate assurance of payment for service provided after the date of the petition.
Editorial Notes
Amendments
**2020**—Subsec. (d). Pub. L. 116–260, §1001(h)(2), struck out subsec. (d) which read as follows: "Notwithstanding any other provision of this section, a utility may not alter, refuse, or discontinue service to a debtor who does not furnish adequate assurance of payment under this section if the debtor—
"(1) is an individual;
"(2) makes a payment to the utility for any debt owed to the utility for service provided during the 20-day period beginning on the date of the order for relief; and
"(3) after the date on which the 20-day period beginning on the date of the order for relief ends, makes a payment to the utility for services provided during the pendency of case when such a payment becomes due."
Pub. L. 116–260, §1001(h)(1), added subsec. (d).
**2005**—Subsec. (a). Pub. L. 109–8, §417(1), substituted "subsections (b) and (c)" for "subsection (b)".
Subsec. (c). Pub. L. 109–8, §417(2), added subsec. (c).
**1984**—Subsec. (a). Pub. L. 98–353 inserted "of the commencement of a case under this title or" after "basis".
Statutory Notes and Related Subsidiaries
Effective Date of 2020 Amendment
Pub. L. 116–260, div. FF, title X, §1001(h)(2), Dec. 27, 2020, 134 Stat. 3221, provided that the amendment made by section 1001(h)(2) is effective on the date that is 1 year after Dec. 27, 2020.
Effective Date of 2005 Amendment
Amendment by Pub. L. 109–8 effective 180 days after Apr. 20, 2005, and not applicable with respect to cases commenced under this title before such effective date, except as otherwise provided, see section 1501 of Pub. L. 109–8, set out as a note under section 101 of this title.
Effective Date of 1984 Amendment
Amendment by Pub. L. 98–353 effective with respect to cases filed 90 days after July 10, 1984, see section 552(a) of Pub. L. 98–353, set out as a note under section 101 of this title.
Guides that rely on 11 U.S.C. § 366
Plain-language explanations on this site that cite this section.
By Antonio G. Jimenez, Esq. · Florida Bar No. 21022
Last reviewed July 27, 2026 · Sources verified July 27, 2026 · How we verify
Every figure on this page is drawn from a primary legal source and checked against our canonical legal database before publication. Bankruptcy.law is not a law firm and does not provide legal advice.
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