Coronavirus Bankruptcy

Anticipated Increase in Bankruptcy Filings

Earlier this week, Newsom ordered all non-essential businesses to close, including bars, beer pubs and wineries. San Francisco Bay area officials ordered some 7 million residents to “shelter in place” on Monday, prohibiting people from leaving their homes, except under “limited circumstances,” according to the order. Dawn Kopecki, Coronavirus: California estimates 25.5 million residents — 56% of the state — will get virus in next 8 weeks. CNBC, Mar. 19, 2020, at 1, https://www.cnbc.com/2020/03/19/coronavirus-california-estimates-25point5-million-residents-56percent-of-the-state-will-get-virus-in-next-8-weeks.html.

On March 20, 20202, Sacramento implemented a mandatory stay-at-home order. As part of the order, residents are told to stay at home except for “essential activities, essential government functions, or to operate essential businesses.” The order mandates the closure of all bars, wineries, and brewpubs. It also orders an end to all in-dining at restaurants, but still allows for home delivery and takeout. All gyms, bingo halls, and card rooms will also be required to close. Matthew Nuttle, Here's what Sacramento County's coronavirus stay-at-home order applies to, ABC, March 19, 2020, at 1, https://www.abc10.com/article/news/health/coronavirus/sacramento-county-shelter-in-place-coronavirus-covid/103-d6218d97-f198-4247-8907-844146b00a8b.

The mandatory business closures may continue beyond the initial eight weeks. Regardless, these initial closures have resulted in mass layoffs. "During a press conference Monday night, Newsom reported that the daily average of claims over the last seven days is 106,000. The normal average per day is just 2,500, meaning the number of jobless claims has increased by over 4,000%." Eric Ting, California's increase of unemployment insurance claims is absolutely staggering. SFGate, Mar. 24, 2020, at 1,. https://www.sfgate.com/politics/article/California-unemployment-coronavirus-numbers-news-15152303.php.

The dramatic increase in unemployment claims is a telling sign that bankruptcy filings will increase as a result of the coronavirus (COVID-19).

Pending Bankruptcy Matters

Notice from the United States Trustee Regarding the Continuance of Section 341 Meetings in Chapters 7, 12 and 13 Cases - Region 17
Monday, March 16, 2020

Effective immediately, all in-person chapter 7, 12, and 13 section 341 meetings scheduled through April 10, 2020, are hereby continued until a later date to be determined. Absent special circumstances, section 341 meetings may not proceed during this period except through telephonic or other alternative means not requiring personal appearance by debtors. Appropriate notice will be provided to parties in accordance with bankruptcy law and rules.

Meetings already noticed as telephonic meetings may proceed as scheduled.

This notice supplements the March 13, 2020 Notice from the United States Trustee Regarding the Rescheduling of Section 341 Meetings.

Questions should be directed to the field office Assistant United States Trustee.
https://www.justice.gov/ust-regions-r17/region-17-eastern-district-california-sacramento-and-modesto-divisions.

Sacramento Bankruptcy Attorney

Whether you're considering bankruptcy or simply trying to find a way to fix the debt problem, it is highly recommended that you speak with a bankruptcy attorney. Most attorneys will provide a free initial consultation and its an opportunity to learn the options. Feel free to contact Sacramento bankruptcy attorneys to set up a free initial meeting. Retirement accounts and bankruptcy mix very well together if handled correctly.

Call Us: (916) 241-3336


By: Trevor Carson

*The information provided in this post does not constitute legal advice or opinion. The information is for guidance purposes only. Individual situations vary and you should contact an attorney for a consultation. This post is considered a solicitation and advertisement. The post does not warrant the outcome of any matter. Sacramento Bankruptcy Attorney on coronavirus bankruptcy.

Sacramento Bankruptcy Resources

United States Bankruptcy Courts – Bankruptcies are filed in federal courts. Here is a link to the federal courts website for bankruptcies.

United States Bankruptcy Court, Eastern District – A link to the bankruptcy court in Sacramento.



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