The Federal shutdown may affect some areas of the federal government, but not the court system. The U.S. Federal Courts are considered essential services that do not shut down alongside non-essentials. Bankruptcy courts, as part of the federal court system, will remain open during the government shutdown.
This is good news for individuals who still need to take advantage of bankruptcy protections. They can get immediate relief. It is always advised that they contact an attorney to provide services in filing bankruptcy cases.
Most notable of pending bankruptcy cases is the City of Detroit’s bankruptcy filing. This case will not be interrupted. Along with it, the thousands of pending Chapter 7, 11, 12, and 13 cases handled by the Bankruptcy Court for the Eastern District of Michigan.
Chief judges of the federal Bankruptcy and U.S. District courts in Detroit have signed orders continuing operations even if the partial government shutdown continues into next week.
Administrative orders released today say all current services and staffing are essential and that employees must report to work.
Chief Bankruptcy Judge Phillip Shefferly wrote that if no resolution to the shutdown comes by Monday the federal judiciary will operate under the terms of the Anti-Deficiency Act, which allows essential work to continue.
He also notes that the court is taking on the largest municipal bankruptcy filing in U.S. history. Emergency manager Kevyn Orr filed Detroit’s bankruptcy petition in July.
The government shutdown began Oct. 1 after President Barack Obama and Senate Democrats rejected Republican demands to defund the new health care law.
Crains Detroit: http://www.crainsdetroit.com/article/20131010/NEWS01/131019988/shutdown-wont-halt-detroit-bankruptcy-court-work#
