BANKRUPTCY COURTS AND COVID 

GOOD NEWS - The pandemic slowed down but did not stop the bankruptcy courts. The courts adapted to this latest crisis much as they have adapted to all past crisis situations. In person court hearings were replaced by telephonic court hearings, most case and motion filing swere not affected because the court already used electronic filing systems. Trustee meetings were adjusted so that all, instead of some, were to be held telephonically. Documents were transmitted over secured lines to secure websites, as was previously the case. Except for the lack of personal ocntact, most things remained the same, except everything took longer - mostly because court staff were not working in the courts, but rather from home, with remote access. 

At some point, someone needs to stamp something ro sign something, or needs information regarding a situation, and this is where things slowed down. One of my clients discharges was delayed a few months due to the bankrutpcy clerks' filing backlog, although clients were still protected by the automatic stay during this time. 

Slowly the courts are opening again to physical visits, assuming you are not sick. Before you know it, things will generally get back to almost normal. There will probably be a surge in filings once mortgage foreclosure moratoriums expire. 

Also, some new issues will likely arise in bankruptcy filings, such as possible misuse of paycheck protection loans, treatment of IRA and 401(k) loans and unemployment supplements, preferential paybacks of family loans, ability to pay Chapter 13's due to lost employment, etc. For example, if inflation hits us suddenly and hard, then standard allowance tables and ceilings may not realistically apply to adequately protect debtors. It will be once again an interesting and challenging time for attorneys and their clients. 

Still, we will all adapt. We always have in the past. This time will not be different. 

So, hang in there. 

Marvin Wolf, Esq.