COVID-19 (coronavirus) and Bankruptcy: Frequently Asked Questions
By Tripp Huffstetler
At Sosna Law Offices, we are closely monitoring developments surrounding the outbreak of COVID-19. For now, all three of our offices are closed to public walk in. But rest assured, we are still working and conducting client appointments by telephone and other electronic means. We know you have questions, and we know you are worried. We share your worries, but I'd like to take the opportunity below to answer some common questions we've been getting over the past week and a half.
What if I can't make my Chapter 13 payment? Will my case be dismissed?
Our advice is to send in as much as you're able to send in, when you're able to send it. While neither the Court nor the Trustee can excuse payments during this time, the Trustee and the Court will generally be more lenient in terms of allowing you to catch up payments when the imminent threat of COVID-19 passes. The Trustee may still have to file a motion to dismiss, but we will have an opportunity to file a response and propose something that would catch up your payments. In some cases, we may also be able to modify your plan down the road in such a way that will bring you current.
If you are already subject to a "drop-dead" (meaning you're subject to a consent order that your payment be in by a specific day, typically the last day of the month), Trustee Bledsoe is not currently requesting dismissal despite the default. However, still try to send in as much as you can to avoid falling further behind.
The key is to show the Trustee and the Court that you are trying your best. If you're able to send something in, even if not a full payment, it shows your good faith and that you are honestly trying.
What if I am paying my mortgage or car payment directly, but can't make the payment this month?
Similar to the answer above, send in as much as you can. If you fall behind, the Creditor may file a motion for relief from the automatic stay. As always, we will monitor such motions and file responses on your behalf opposing the motion, in an effort to give you a chance to catch up the payments. Like with any other issue, we will be in contact with you directly to discuss your best options for dealing with this issue.
Is my hearing still going to happen?
If you have an initial ("341") meeting, those are postponed through the end of March. As of the date of this blog post, they are set to resume in April, though that could and likely will change. Stay tuned to our Facebook page for the latest updates. We will also reach out to each and every affected client directly with any changes to the meeting schedule.
If you have a hearing on a motion to dismiss, objection to confirmation, motion for relief from the automatic stay, or some other matter, please know that we are doing everything in our power to resolve that matter so that your appearance is not necessary. Even if we are not able to resolve it, we may be able to continue it, appear on your behalf, or have you appear telephonically. If you have a question about whether you need to appear at a hearing, just call us. At this point, it is extremely unlikely you would need to appear. For now, the Court is actively discouraging Debtors from attending hearings in person, and the Court is implementing other means of appearance such as telephonically.
Finally, even if you have a scheduled hearing, simply let us know if you have fears about attending. Whether you've had symptoms yourself, been exposed to someone with symptoms, or you are simply wary about appearing in public, let us know and we will continue your meeting to another setting or possibly have you appear by written interrogatories.
How can I submit paperwork to you?
There are many ways that you can submit paperwork to us. Our preference is that you scan and email it to office@sosnalaw.com or fax it to (252) 937-3028. If neither of these is an option, our Rocky Mount office has a secure dropbox in the front door, where you can physically drop off paperwork.
How can I make a payment toward my retainer?
Our preference, for now, is that you pay online by visiting this website: https://secure.lawpay.com/pages/sosna/trust. Please note that we can only accept debit cards or eCheck. If you wish to pay by credit card, it must be a friend or family member's credit card. This is due to our terms of service with our online payment provider LawPay. LawPay prohibits us from accepting credit cards from individuals who are filing bankruptcy.
If you are not able to pay online, you may drop off a check or money order through the drop box in our front door, but only in the Rocky Mount office. Alternatively, you can call us and we can take your debit card or eCheck payment over the phone.
What if I have questions about my case?
Call us! We've implemented procedures that will allow us to remain fully operational, even if we must work remotely. Regardless of what happens, including the possibility of a shelter in place order, we are still available to answer your questions as always.
We wish everyone health during this difficult time. Be safe, take care of each other, and wash your hands. If we can be of assistance, we are only a phone call away.