Can I File Bankruptcy if the Govt Shuts Down?

Posted on March 3, 2011 at 9:11am by

Mystery solved, thanks to Hope Huntington of The Sader Law Firm. The answer is yes you can. A government shutdown would not prevent the filing of a bankruptcy case, according to Roberta Kostrow, Operations Manager for the U.S. Bankruptcy Court for the Western District of Missouri. “The Judicial Branch does not foresee any issues with the continued operation of the ECF filing system in the event of temporary federal budget issues,” she commented on Tuesday.

Fortunately, a government shutdown has temporarily been avoided. President Obama signed a short-term spending bill yesterday, averting a potential shutdown for two more weeks. The resolution passed by a large majority and will cut $4 billion in spending by targeting programs that Obama had already earmarked for elimination. However, it only buys two weeks to come up with a funding solution for the remainder of the fiscal year (ending September 30th).

According to a Congressional Research Service Report, the last time the government shut down, hundreds of National Park Service sites, museums and monuments were closed, resulting in a loss of an estimated 2 million visitors. Over 1 million federal employees stayed home, mainly those employed within the Departments of Education, Veteran Affairs, HUD, and Social Security Administration. Those seeking travel to or from the U.S. with visa and passport applications found their requests went unprocessed. Over 3,500 bankruptcy cases were temporarily suspended.

Thus, in the event of a government shutdown, though pending cases could experience delays or suspensions, filing new cases should be a non-issue. “According to the Court Clerk here in Kansas City, even if the government shuts down temporarily, we still should be able to get cases filed,” said Neil Sader.

Are considering filing bankruptcy? It may be the best move for you and you’ll need a reliable Kansas City bankruptcy attorney who can provide immediate relief, in spite of the looming government shutdown. Neil Sader and The Sader Law Firm have more than 30 years of combined experience in Chapter 7 bankruptcy, Chapter 11 bankruptcy and Chapter 13 bankruptcy cases and can help provide you with the financial freedom you deserve. Contact an attorney at The Sader Law Firm today for a free consultation at (816) 281-6349 to find out whether you qualify for bankruptcy and to learn more about the options available to you.

[Update] Chief Judge Robert E. Nugent of the District of Kansas just released a statement today regarding the possibility of a government shutdown. While contingency plans are being made, Judge Nugent has made it clear that essential new and ongoing matters will be attended to as usual.



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