What will happen on October 1st if we see a government shutdown? I think we learned a lot from the 16 day government hiatus of 2013. The same shutdown that cost the United States between $2 billion and $6 billion in economic output. That very same thing could happen again in a matter of weeks.

Put politics aside. Let’s talk about what this means for the everyday average person.

If we go into another shutdown we will see government employees on furlough’s as we did a few years ago. Why the government workers are off, they will not be receiving their normal paycheck. The court system will be on emergency status.

Here’s what you need to know; If you have been thinking about filing for bankruptcy it would be best to do it before the shutdown. Now, if the United States Congress cannot come to terms over a budget the bankruptcy courts could potentially shutdown. More than likely, they will go to emergency status. This will have the bankruptcy courts run on a thin staff. This will also cause any case filing to be delayed due to the smaller staff sizes working in the court system.

A few things that you need to know, the primary purpose of bankruptcy is the elimination or reorganization of debt. When someone files for bankruptcy that also provides protection to them against foreclosure, garnishments, liens or levies on their house or property. In case of a shutdown homeowners that are facing foreclosure would not be able to stop a foreclosure sale and workers would not be able to stop garnishments. This once again could cost taxpayers billions of dollars, as it did two years ago.

We did learn a lot from 2013. We learned that a lot of people felt the hurt of not receiving their normal paycheck. We learned that bankruptcy courts thin their staff down and go to emergency status. However, if we are in a government shutdown and you are facing foreclosure it could potentially be bad news for your home or property.

If you are thinking about filing bankruptcy, Castle Law Office provides a free consultation. You can call us at 816-842-6200 or you can email us and set an appointment with a Castle Law Office Attorney to discuss your options.

Jason C. Amerine
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President and Owner, Castle Law Office of Kansas City
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