Covid Lockdowns Explained

To say the CoronaVirus (CoVid-19) Pandemic has changed everything is an understatement. It really is estimated that 1/3 of businesses and rental unit tenants did not pay their rent on-time in March or April. That number is expected to climb as the lockdown of our businesses and people continues amid the CoVid-19 risks of infection and serious illness, in certain cases death. Luckily, in Ventura County, we have not had the degree of carnage that Americans in New York City are having. However, our county next door, Los Angeles County isn't exactly having the same stellar results that we have been enjoying in Ventura County.

With financial worries mounting, and everything changing week by week, you may be wondering how all this will affect you if you file for bankruptcy or are already along the way of your bankruptcy. There are actually law firms available to help. They are carefully following all of the changes as they appear, and they are here to help you throughout the bankruptcy process during these incredibly challenging times. Discuss several of the changes you'll be going through and answer several of your most significant questions.

Are the Bankruptcy Courts Still Open?

Yes, Conversely, most court hearings will be done over the phone, not in-person. Everything you say will be recorded and entered in to the official record as if you were in person. If you fail to make yourself available at the prescribed time, it can and almost certainly will be entered in to the record as a 'no show' and that's a big no-no with the court.

Can I Still File for Bankruptcy Throughout the Corona Virus Shutdown?

Yes, the courts continue to be allowing bankruptcy cases and motions to be filed through the CoronaVirus crisis. The only real difference is bankruptcy and court appearances will be observing these new CoronaVirus pandemic protocols.

Will My 341 Bankruptcy Meeting be Postponed

All pending 341(a) meetings of creditors (initially scheduled for March 25, 2020, through April 10, 2020) have been continued to a later date, most to be determined. This order will probably be extended. Everything remains fluid right now.

In a Chapter 13 case, the continuance of the creditor meetings won't relieve debtors of their obligation to commence making plan payments to the Trustee not later than 30 days after the date the petition was filed. Debtors may make these payments electronically Read More On this page TFS (dot) com.

Can I Keep the Financial Relief Payments I Receive Through the Covid-19 Financial Crisis?

The bankruptcy trustee will not be seeking the turnover associated with any economic relief payments linked to the coronavirus economic crisis. That money you may use for your most immediate financial needs.

Do I Still Need to Make My Mortgage Payments Throughout the Corona Virus Shutdown?

Yes. You will still need to continue to make payments as promised. Under certain circumstances a law firm could possibly be able to get some relief from the court.

If you have not filed yet, a law office could be able to get some relief through your creditor as per the new laws passed by Congress. Bear in mind, your bank holding your mortgage must be notified of your financial challenges or job loss just before you missing payments.

Will My Bankruptcy Discharge Be Delayed As a result of the Corona Virus Crisis?

Your final bankruptcy discharge could be put off if your 341 meeting is rescheduled or continued until further notice. Stay informed with updates through your court or trustee. Updated information could also be sent to you by mail, even after your meeting has taken place. It is important that you follow all the requirements communicated to you, you will discover no excuses for missing hearings, or court dates.

Will My Bankruptcy Automatic Stay Be Affected by These Changes Due to Covid-19?

Not unless your bankruptcy case has been dismissed. Otherwise, the automatic stay will remain in effect unless certain exceptions are met, for example your creditor requests relief from stay. Debtors who file multiple bankruptcy cases in a short quantity of time may be denied an automatic stay also and you will not be permitted to use the CoronaVirus being an excuse.