Bankruptcy Courts: Open for Business

During challenging economic times, Bankruptcy Courts serve an essential governmental and financial function. The COVID-19 outbreak has forced closures of businesses and governmental entities throughout the country, resulting in a cascade of financial distress across virtually every economic sector. The nation’s courts have not been immune from disruptions. Nearly all State Courts and Federal District Courts in major metropolitan areas have suspended non-emergency civil proceedings. These disruptions highlight the challenges faced by Bankruptcy Courts in balancing public health risks and ensuring materially unfettered access for new bankruptcy filings and pending bankruptcy cases.

To manage the effects of the pandemic, Bankruptcy Courts in each Federal District are formulating individualized approaches based on each court’s unique circumstances -- which include disparate levels of local exposure to the pandemic, varying disaster declarations and Shelter-in-Place Orders, and uneven investment in courtroom technology. Fortunately, uniform use of electronic case management software permits uninterrupted filing of bankruptcy cases, motions, and other submissions. Despite each court’s differences, Bankruptcy Courts have taken an approach similar to District Courts: suspension of in-person hearings in favor of telephonic court calls. Most Bankruptcy Courts also permit individual judges to take a case-by-case approach to trials and evidentiary hearings, which usually involves continuances of non-emergency matters until after the pandemic subsides. Notably, Bankruptcy Courts in the District of Delaware and the Southern District of Texas have implemented general procedures establishing the use of third-party video-conferencing applications to conduct trials. The implementation of video-conference technology for trials and evidentiary hearing could become more widespread if the duration of disaster declarations and Shelter-in-Place Orders remain in place for an extended period of time.

The following provides a summary of procedures established by Bankruptcy Courts in several large metropolitan providing for continued operations during the pandemic. The list also includes hyperlinks to Orders and Public Notices regarding procedures for telephonic court appearances and evidentiary hearings.

Central District of California

Motion Call: Telephonic

Trial/Evidentiary Hearing: Case by Case Basis

Procedures

Northern District of California

Motion Call: Telephonic

Trial/Evidentiary Hearing: Case by Case Basis

Procedures

District of Delaware

Motion Call: Telephonic

Trial/Evidentiary Hearing: Video Conference

Procedures