Pelley Law Office LLP
Dallas Office
Plano Office
Sherman Office
214-733-1775
972-608-0335
903-813-4778

No Charge For Initial Consultation ($250 value)

Menu Contact

Over 80 Years Of Combined Experience

View Our Practice Areas

Is government shutdown slowing bankruptcy cases?

Bankruptcy courts in the United States are open for business despite the continuing partial shutdown of the government. That does not mean that the courts are operating at full steam.

The concern that raises among some observers is that consumers and businesses who may be in desperate need of debt relief through bankruptcy may find the process running much slower than usual. The U.S. Justice Department confirms that the Trustee Program is only being staffed at one-third of normal levels. That's the program tasked with monitoring bankruptcy cases through the system to ensure the rights of all stakeholders, debtors and creditors alike.

As of the first of the month, officials in the busy bankruptcy jurisdiction of Southern New York, which includes Manhattan, were saying that they had enough funds to keep skeleton operations going for 10 days.

They said they didn't know for sure what would happen when that window closed, though they noted that judges and court employees have been deemed essential employees. Apparently we will begin to see what will happen in just a few days unless the shutdown is resolved.

Shy of any resolution, the bankruptcy court's top judge has issued an order saying that delays will be the norm in any bankruptcy suit or other contested matter until the day after a law restoring Justice Department funding has been signed by the president.

What all this means for readers of this blog is that the bankruptcy system remains open in Texas districts for now. That could well change if the shutdown goes on much further. As with all issues related to bankruptcy matters, it's best to consult with an attorney to be certain of your options.

Source: WSJ.com, "Government Shutdown Hits Bankruptcy Watchdogs," Joseph Checkler and Stephanie Gleason, Oct. 1, 2013

No Comments

Leave a comment
Comment Information

Awards & Recognition

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

Office Locations

Plano office
Sherman office
Dallas office

Plano Office
1312 14th Street, Suite 100
Plano, Texas 75074

Phone: 972-608-0335
Map & Directions

Sherman Office
905 North Travis Street
Sherman, Texas 75090

Phone: 903-813-4778
Map & Directions

Dallas Office
6060 North Central Expressway, Suite 602
Dallas, Texas 75206

Phone: 214-733-1775
Map & Directions