Can You Still File Bankruptcy in a Federal Government Shutdown?
Congressional gridlock over a new budget has caused an indefinitely shutdown of many government services. The good news for those struggling with debt is that all federal courts will remain open and functional during the furlough. That means that if you've recently filed a bankruptcy petition or are considering bankruptcy as a debt-relief option, you won't face any additional roadblocks.
Federal courthouses are remaining open due to provisions under the Anti-Deficiency Act, which mandates that "essential" government work continues in the event of a federal funding shortfall. This provision will protect many government services until the 17th of October, at which point only the most essential services will be kept open.
The Office of the Judiciary issued a statement that it will reassess its financial situation on or around October 15, as assess whether it can continue operations during the shutdown. Until then, it will continue to process all court cases as regularly scheduled.
Leaders in Congress were unable to pass a new budget for the fiscal year that begins October 1st, as Senate Democrats were unwilling to consider a provision attached by a vocal minority of House Republicans that calls for an end to Obamacare. The President's signature health care law has a major milestone today, with mandated health care exchanges opening across the country.
One major rallying point around health care reform is the number of American's who cite their inability to pay for medical bills as a major reason causing them to file for bankruptcy protection.