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I’m again with extra info relating to what “6 months meals, gas and provisions” really means. We final talked about grocery retailer Gift playing cards – whether or not they’re thought of an exempt asset. At this time I want to point out a couple of issues relating to prepaying your utility payments.
Let’s return to February of this 12 months. A married couple filed a chapter 7 chapter petition with a logical try to offer 6 months value of gas and/or provisions, as allowed beneath the required exemptions. Particularly, they listed on their schedule C pay as you go utilities within the combination quantity of $3,333.50. Their trustee objected.
The debtors reasoned as such. As we now have stated earlier than, ARS 33-1124, Arizona’s meals and gas exemption law, permits for an ambiguous “6 months meals, gas and provisions.” As a result of they might not merely buy an equal quantity of electrical energy or pure gasoline and retailer it of their yard shed, the debtors estimated their common month-to-month utilities and submitted prepayment in an quantity equal to six months time.
There’s a catch. The combination schedule C sum might be damaged down as follows: “the debtors paid Qwest the quantity of $1,000; Arizona Public Service, the quantity of $1,400; the Metropolis of Phoenix, the quantity of $750; and Southwest Fuel Firm, the quantity of $183.50.”
The Courtroom agreed that to offer in kind6 months value of doubtless hazardous and unstable gas (would you need your neighbor storing 6 months value of propane of their yard shed?) is illogical, unsafe and simply plain unlawful. Thus, not like the Gift card instance, prepayment was deemed a suitable substitute.
Nonetheless, the Courtroom then questioned whether or not these utilities really fell beneath the exemptions allowed by ARS 33-1124. As a result of ‘gas’ has not been outlined in Arizona case law, they turned to trusty previous Webster, who outlined gas as “[A]ny materials, as coal, oil, gasoline, wooden, and many others., burned to provide warmth or energy……[F]issile materials from which nuclear power could be obtained, as in a nuclear reactor……”
Thus, the Courtroom concluded that “offering pure gasoline or electrical energy are inside the parameters of the definition. Nonetheless, the deposits with the phone/Web supplier or the Metropolis are usually not inside the definition of gas”. So, Arizona Public Service (electrical energy) and Southwest Fuel (gasoline) are in; Quest (telephone/Web) and Metropolis of Phoenix (trash/water) are out.
What have we realized at this time?
1. Prepayments in direction of utilities offering “gas” could also be exempt for a financial quantity equaling 6 months of fee.
2. Web/telephone and water trash are usually not ‘gas’ and thus related exemptions don’t apply.
We may additionally deduce from this that the Courtroom doesn’t think about these excluded utilities as ‘provisions,’ as this may change their exemption standing. So, in closing, I want to repeat the query I’ve requested earlier than… What on the earth it a provision?
