Businesses throughout the world have had to alter their procedures during the Coronavirus pandemic. And Colorado courts and other government agencies are ultra careful. Did you file for bankruptcy just before the Colorado Stay at Home Order? Or maybe you are considering filing for bankruptcy in Colorado now. There are some things you should now about filing for bankruptcy in Colorado during Covid-19.
Am I still Protected from Creditors While Courts are Closed in Colorado?
Like many other states, Colorado has issued stay at home orders to reduce the spread of the coronavirus. If you have filed for bankruptcy, but the court in which you filed was closed before you completed the process, you will continue to be protected from creditors by the automatic stay. If you have not yet filed, and the court in which you would typically file is currently closed, you may want to consult an attorney to find out whether you can file in a different court.
United States Bankruptcy Court for the District of Colorado Current Operational Status
As of May 15th, 2020 The United States Bankruptcy Court for the District of Colorado has implemented a
courthouse entrance protocol to ensure the safety of the public and all court employees.
Anyone who meets any of the following criteria shall be denied entrance to the U.S. Bankruptcy Court for the District of Colorado:
- Individuals who have been in any country for which the CDC has issued a Level
3 travel health notice within the last 14 days (see the CDC website for more details)
- Individuals who reside, or have been in close contact, with someone who has been in any of the aforementioned countries in the last 14 days
- If you have been asked to self-quarantine by any hospital, health agency or medical professional
- Individuals who have been diagnosed with Coronavirus/COVID-19
- Those who have had direct contact with anyone who has been diagnosed with Coronavirus/COVID-19
- Individuals with apparent symptoms of COVID-19, such as fever, severe cough, or shortness of breath.
In addition, all entrants, including judges, staff, security personnel, contractors, attorneys, parties, and others entering the courthouse must follow social distancing guidelines. This includes the six feet apart and wearing a cloth face covering or mask. Face coverings must cover nose, mouth, and chin. And these must be worn at all times while in common areas of the courthouse. Such as the Clerk’s Office, courtrooms, entryways, hallways, and restrooms.
If you have a payment to make please note the clerk’s office is not accepted cash during this time. Only checks and money order will be accepted.
Changes to Colorado Bankruptcy Rules Under the CARES Act
The COVID-19 crisis has resulted in a few temporary changes to substantive bankruptcy rules under the federal Coronavirus Aid, Relief, and Economic Security (CARES) Act. These modifications will expire on March 27, 2021. Under this act, a debtor with a pre-existing Chapter 13 repayment plan can possibly extend their plan to seven years. But getting this modification requires notice and a hearing. And the debtor must show a material financial hardship resulting from the COVID-19 outbreak.
Do Stimulus Checks Count As Current Monthly Income When it Relates to Bankruptcy
The simple answer is no. Stimulus checks and other payments under federal law that are related to Coronavirus do not count as current monthly income. This is a relief for debtors seeking to file under Chapter 7. And these payments will not count as disposable income for debtors seeking to file under Chapter 13.
Section 341 Meeting of Creditors in Colorado
Debtors who file for bankruptcy under Chapter 7 or Chapter 13 typically need to attend a meeting of creditors. This is under Section 341 of the Bankruptcy Code. Section 341 meetings scheduled for cases in Colorado and filed through July 10, 2020 will be held over the phone. Appropriate notice will be provided to parties in accordance with bankruptcy law and rules.
Bankruptcy Attorney for Filing Bankruptcy in Colorado During Covid-19
Barry Arrington has years of history helping people through the difficult time of bankruptcy. He is up to date on all the changes for filing for bankruptcy in Colorado during Covid-19. You can certainly go through filing without an attorney but to make sure you get the best representation call Barry Arrington for a free consultation.