How Will the Government Shutdown Affect Bankruptcy Proceedings?
With parts of the federal government officially shut today, and a compromise is still unsure, lots of federal government employees will be experiencing adverse economic effects. Federal government employees are expecting to sign furlough papers and return home. Nonetheless, many of them are still waiting to see the affects of their departments. About 800,000 workers are expected to be ordered to stay at home on furlough. The government assured it will continue to support programs that are crucial to keeping public security and safeguarding property.
Throughout the furlough, Americans will certainly not receive an income during the closure and might have to deal with bankruptcy. There is a possibility that Congress will certainly compensate them as soon as the furlough ends. Yet there is no assurance. Regrettably, it will certainly be the dedicated federal workers that will surely feel the consequences of the shutdown the most. Many will be compelled to use credit cards through this challenging time. Credit card bills may pile up and lead to impending bankruptcy.
Federal courts will continue to conduct hearings and decide on cases. However, the justice department has actually prompted its lawyers to stop or hold off non-critical civil issues. In relation to bankruptcy courts, the Administrative Office of the U.S. Courts for the Federal Judiciary released a statement. Bankruptcy courts will continue to be open, along with case management and electronic case filing systems(CM/ECF). Still, if the shutdown continues for several weeks, people that have filed bankruptcy can anticipate hold-ups or cancellation of 341 hearings, delays in verification of Chapter 13 plans, and other delays. Cancellation of bankruptcy cases will only happen if it does not compromise the safety of human life or the security of property under the terms of Anti-Deficiency Act.
If you have questions about your plans to file bankruptcy in New Jersey, please contact NJ bankruptcy attorney, Karina Lucid. She will be more than happy and able to assist you during this challenging time.