News: General News

Federal Government Shutdown Delays Bankruptcy Payments

Monday, January 7, 2019  
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If you’re awaiting payments from vendors that filed for chapter 7 bankruptcy protection, don’t expect to find them in your mailbox any time soon. As a result of the partial shutdown of the federal government, such payments are delayed. 

 

Justice Department employees oversee chapter 7 payments and must approve payment plans submitted by bankruptcy trustees. With those employees off the job during the shutdown, the process is at a standstill, according to The Wall Street Journal. Depending on the length of the shutdown, the backlog of payment plans requiring approval once the government reopens will likely delay payments further.