Joel R. Glucksman
Partner
201-896-7095 jglucksman@sh-law.comFirm Insights
What Does the Government Shutdown Mean for Bankruptcy Courts?
Author: Joel R. Glucksman
Date: October 11, 2013
Key Contacts
Back
Several high-profile bankruptcy law cases are currently being deliberated across the country, ranging from Detroit’s historic Chapter 9 municipal bankruptcy to any number of large corporate filings. In light of the Oct. 1 government shutdown however – the first since 1996 – consumers, businesses, and third parties alike are wondering how the court system will be affected and whether landmark cases will be allowed to proceed.
The U.S. federal courts have announced that they will continue to hear cases without interruption, despite the government shutdown, albeit with more frugality in mind. The Administrative Office of the U.S. Courts reports that the courts will rely heavily upon fee revenues and funds from appropriations that aren’t expiring, in order to allow them to work without delays. The Justice Department noted that its attorneys also plan to postpone non-critical civil matters until the government resumes operations. These steps will enable the courts to function efficiently until Oct. 15. After that, however, full functioning of the legal system may become dicier.
In the Bankruptcy Courts, specifically, judges will continue to hear cases, and attorneys, clerks, and staffers will maintain their responsibilities. Due to a Constitutional provision, judges are automatically entitled to their salaries until Oct. 15, but must obtain authorization from the Secretary of the Treasury if the shutdown continues past this date. With regard to clerks and staffers, however, judges will be permitted to retain employees that are “essential to the resolution of cases.” However, these workers may not be paid until after the shutdown ends.
As each court will have some measure of discretion to determine which personnel will stay on during this period, it is unlikely that bankruptcy law cases whose outcomes may have a large impact on the economy will feel the heavy effects of the shutdown.
- Practices: Corporate Transactions & Business, Bankruptcy & Creditors' Rights, Bankruptcy Litigation
- Locations: Red Bank, NJ, New York City, Little Falls, NJ
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Related Posts
See all
Eviction Is Not Always the End: Understanding Post-Possession Rent Claims in New Jersey and New York
No. An eviction does not automatically end a tenant’s obligation to pay rent. Post-eviction rent claims are common because recovering possession resolves who has the right to occupy the premises, but it does not extinguish the tenant’s contractual obligations under the lease. Whether unpaid or future rent remains owed depends on three factors: the lease’s […]
Author: Donald M. Pepe
Company Dissolved? Legal and Financial Consequences to Expect
A company is dissolved; legally, it ceases to exist. Accordingly, dissolution results in significant legal and financial consequences. It is a process that must be properly managed to avoid continuing liability. The Corporate Dissolution Process Corporate dissolution is the legal process of formally closing a corporation, paying its debts and distributing the remaining assets. Most […]
Author: Jay McDaniel
The Legal Implications of Signing a Triple Net Lease
A triple net lease is a commercial lease in which the tenant pays the property’s real estate taxes, insurance, and maintenance costs, known as the three nets, in addition to base rent. They are most often used in freestanding retail and office buildings and in large single-tenant industrial properties, with terms that typically run 10 […]
Author: Donald M. Pepe
When to Settle and When to Fight: A Litigator's Framework
Every lawsuit comes with a cost, and knowing when to settle a lawsuit is one of the most consequential decisions a business owner will face. Experienced litigators understand how to minimize cost and obtain certainty for their clients. For many business owners, the decision is viewed almost entirely through a financial lens: What will it cost […]
Author: Sean M. Pena
A Whistleblower Just Filed a Complaint Against Your Company: Here's What to Do Now
Few situations create more uncertainty than learning that an employee has filed a whistleblower complaint. Questions arise immediately: Is the allegation legitimate? Should the employee be placed on leave? Do we need to notify our insurance carrier? Are we now prevented from disciplining the employee if there are unrelated ongoing work related issues? There is […]
Author: Sean M. Pena
Assignment for the Benefit of Creditors: An Alternative to Bankruptcy for Distressed Businesses
When a business reaches the point where it can no longer service its debts or otherwise resolve its liabilities, management is often faced with a difficult question: is a bankruptcy filing necessary or is there another way to perform an orderly liquidation or sale of the business assets? While Chapters 7 and 11 of the […]
Author: John D. Giampolo
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.