To say that the CoronaVirus (CoVid-19) pandemic has changed everything is an understatement. It is estimated that 1/3 of business and rental unit tenants did not pay their rent on time in March or April. That number is expected to rise as the closure of our businesses and people continues amid risks of infection and severe illness from CoVid-19, in some cases death. Fortunately, in Ventura County, we haven’t had the level of carnage that Americans are having in New York City. Still, our next-door county, Los Angeles County, isn’t seeing exactly the same stellar results that we’re enjoying in Ventura County.
With financial worries on the rise and everything changing week by week, you may be wondering how all of this will affect you if you file for bankruptcy or are already in bankruptcy proceedings. There are law firms out there to help. They are carefully tracking all changes as they come along, and are here to help you through the bankruptcy process during these incredibly challenging times. Discuss some of the changes you’ll face and answer some of your biggest questions.
Are bankruptcy courts still open?
Yes, however, most court hearings will be held over the phone, not in person. Anything you say will be recorded and entered into the official record as if you were in person. If you cannot be available at the prescribed time, it can and will most likely be entered on the record as ‘no-show’ and that is a big no-no with the court.
Can I still file for bankruptcy during the Corona virus lockdown?
Yes, the courts are still allowing bankruptcy motions and cases to be filed during the coronavirus crisis. The only real difference is bankruptcy and court appearances will observe these new CoronaVirus pandemic protocols.
Will my 341 bankruptcy meeting be postponed?
All pending 341(a) creditors’ meetings (initially scheduled for March 25, 2020 through April 10, 2020) have continued to a later date, most to be determined. This order will probably be extended. Everything is still fluid at the moment.
In a Chapter 13 case, continuation of meetings of creditors does not relieve debtors of their obligation to begin making plan payments to the Trustee no later than 30 days after the date the petition is filed. Debtors can make these payments electronically at TFS (dot) com.
Can I keep the financial aid payments I receive during the Covid-19 economic crisis?
The bankruptcy trustee will not seek billing for any financial assistance payments related to the coronavirus economic crisis. You can use that money for your most immediate financial needs.
Do I still need to make my mortgage payments during the Corona virus shutdown?
Yes. You will still have to continue making payments as promised. Under certain circumstances, a law firm may be able to obtain some relief from the court.
If you haven’t already filed, a law firm may be able to get some relief from your creditor under new laws passed by Congress. Of course, your bank that holds your mortgage must be notified of your financial challenges or job loss before you miss payments.
Will my bankruptcy discharge be delayed due to the Corona virus crisis?
Your final bankruptcy discharge may be postponed if your 341 meeting is rescheduled or continued until further notice. Stay informed with updates from your court or trustee. Updates can also be mailed to you, even after your meeting has taken place. It is important that you follow all the requirements that have been communicated to you, there are no excuses to miss hearings, or short dates.
Will my automatic bankruptcy 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, such as your creditor requests a waiver of the stay. Debtors who file multiple bankruptcy cases in a short period of time may also be denied an automatic stay and will not be allowed to use the CoronaVirus as an excuse.
Should I contact my creditors during this coronavirus crisis?
The court will notify creditors in accordance with the law, so you do not need to contact your creditors.
Do you need help with your bankruptcy during the CoronaVirus pandemic?
Law firms are there to help you through this challenging crisis. Filing for bankruptcy can seem overwhelming and complicated, especially with all the changes and uncertainty going on, but they can help you navigate your way to help you complete your bankruptcy. Let them know how they can help you.