Effects of Federal Shutdown on Bankruptcy

[Idjut]

Just curious. We had our 341 meeting in early September, filed Chapter 7. The US Trustee filed the motion of presumed abuse 10 days later (which our attorney told us would happen due to being above median, but special circumstances changed our income level). The 30 day deadline for the Trustee to drop the motion or file the motion to have us convert/dismiss is coming up soon. What if the Trustee's office is closed due to the furlough? What happens if the motion isn't filed in time? I hate to think it could be delayed or postponed.

[justbroke]

The question is does the United State's Trustee (UST) office have enough staff to do anything. The Courts are open because they are essential to the operation of the Federal Government. The UST may decide to file some sort of Omnibus Motion to have all (341) meetings, hearings and times extended, but that's pure speculation.

The only way to tell the affects in your District and on your UST's office, would be to contact the UST's office for your District... or your attorney. The worse case is that the UST files a motion to extend the time to respond to motions in all cases as well as continue hearings to a later date.

[Idjut]

Thanks for the reply. I've since done some research on my own, and from what I can see, it will be business as usual in federal courts until October 15th, then they will reassess the situation. Our 30 days are up on Oct 18th. I'm hoping we'll be close enough that they will file whatever they're going to file a couple days early. The waiting game is already stressful enough without adding another thing to worry about.

[AngelinaCat]

30 days? Don't you mean 60 days?

[Idjut]

30 days from the date the presumption of abuse was filed for the UST to file a motion to dismiss or convert. Our 60 days till (hopefully) discharge won't be up until beginning of November. Sorry, I should have been more clear.

[frogger]

From one of the Bankruptcy Judges:

Please note that the United States Bankruptcy Court and Clerk's Office will continue to operate under its normal schedule, including matters set for hearing and public hours, in the event of a government shutdown on October 1, 2013.

Also, §341 meetings of creditors will be held, as noticed.

Thank you.

[frogger]

Received yesterday:

10/10/2013
2014 Funding Lapse Update -
The Judiciary has severely restricted spending from fee and other accounts not tied to Congressional fiscal year allocations in the period since October 1. As a result our court continues to operate with the available fund balances through October 17 or 18. As previously announced, once those funds are exhausted we will continue to exercise the judicial function of the United States in conformity with the Anti Deficiency Act. At that time we will implement our plan to continue operations including, at least initially, accepting new cases, receiving pleadings in pending cases and resolving disputes through the judicial process. Until further notice the electronic filing and docketing system (CMECF) will remain operational, deadlines will remain in place and all matters will be heard as scheduled.

[justbroke]

Couldn't they sum it up as "Business As Usual"?

[frogger]

Couldn't they sum it up as "Business As Usual"?

That would be too easy for the common folk to understand........

[Idjut]

Thanks for the replies everyone. This is a huge relief. The UST contacted my attorney last week to see if anything had changed in our situation in regards to our circumstances. They have not. Looks like they will be filing the motion to drop the presumption of abuse in the next couple days according to our attorney. The end of the week can't come soon enough. I don't want to count the chickens before they hatch, but it looks like our discharge is on schedule for early November.

[justbroke]

That would be too easy for the common folk to understand........

LOL! As if "... we will continue to exercise the judicial function of the United States in conformity with the Anti Deficiency Act" is easier to understand. I had to look up the Anti-Deficiency Act!

I didn't really need to look up the Anti-Deficiency Act, but I was trying to make a point. Sometimes, plain language is better to use. Just say simply that, as an essential government service, the Judiciary will continue to function despite the budgetary issues.