Federal Government Shutdown and Bankruptcy Courts

If congressional budget negotiations ever lead to a government shutdown, the U.S. bankruptcy courts may keep the federal judiciary running.

According to Eric Morath, a writer for the the Daily Bankruptcy Review, federal court officials are preparing contingency plans that fund the courts by means of collected fees rather than appropriations. Morath notes that Bankruptcy courts collect substantial fees from filers and could be an important source of funding.

Judge Randall L. Dunn, a Bankruptcy Judge in Portland, Oregon and president of the National Conference of Bankruptcy Judges had noted that during the government shutdowns during the mid-1990s, bankruptcy fees funded the entire federal court system for roughly two weeks.

If any of the above information triggers any concerns for you, please feel free to share them with us. We understand just how burdensome debt related issues can seem. While debt defense, Fair Debt Collection Practices Act and bankruptcy issues can all get pretty complex in a hurry, our attorneys have devoted their careers to these areas of the law. To set up a time to go over your situation with us just click an open appointment slot on our calendar. As always, both phone and in-person consultations are free and we are happy to answer your questions.

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