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Bankruptcy Court and COVID-19

Bankruptcy COVID clients that were awaiting hearings and those that have filed since March 2020 are benefiting from the Operating Orders and other changes that occurred in the Bankruptcy Court as Judges addressed safety and the economic hardship of debtors caused by COVID.

Hearings.  The dockets set for 341 Hearings (First Meetings of Creditors) and Confirmation Hearings were converted to telephonic hearings. Prior to COVID-19 SCLS clients traveled as far as 80 miles each way for hearings. The hearings set after March and continuing do not require internet or video, simply a working telephone. Clients and attorneys may dial in from wherever they are at a set time.

Plans. Chapter 13 Plans filed prior to March 13, 2020 can be extended from five to seven-year plans if related in some way to COVID. The Courts are liberally construing the cause of the hardships and approving amended plans.

Other Updates.

  • Chapter 13 Trustees have not filed Motions to Dismiss for Non-Payment since March; although this will resume this week with settlement options.
  • Trustees have not attempted to claim an interest in extra monies distributed during the crisis. In the past no tax refund was safe from their grasp.

To find out if you qualify for free bankruptcy representation, contact our Intake Office at 888-346-5592 or apply online at www.sclegal.org.

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