Covid19 Bankruptcy Lawyer Phoenix, AZ

How COVID-19 May Affect Bankruptcy

Covid19 Bankruptcy Lawyer Phoenix, AZIf there is one thing that is certain during the unprecedented Coronavirus pandemic, it’s that nothing is certain. Information changes on a daily basis. If you are considering filing for bankruptcy, have already filed, or are far along in the process, here is what we know so far about how COVID-19 may affect bankruptcy.


If you are considering filing for bankruptcy, be aware that most courts are closed to the public, but remain open to conduct business. As a result, filing is still possible for now. However, newly filed cases may experience longer than normal delays in processing.

The good news is that the “automatic stay” will still go into effect when you file. This means that you won’t have to deal with creditors and bills collectors, especially during this already stressful pandemic.


In general, because the courts are not allowing in-person business, most recently filed and pending bankruptcy cases will experience delays. Some hearings may be held over the phone, while others are still required to be in person. This means that your discharge may also be delayed.

Always check in with your lawyer, trustee, and local bankruptcy court to learn more about your specific situation. Be aware that most courts are inundated with calls at this time. Before calling, check your local court’s website first for answers to your questions.

  • Remember to Maintain Deadlines

Just because there may be delays in court hearings, you should still be aware of and maintain all deadlines associated with your bankruptcy case. Also, anyone already making Chapter 13 payments should continue to do so. Failure to maintain deadlines may result in further delays or even dismissal of your case.


On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security (CARES) Act was signed into law. As a result, many Americans will be receiving relief checks from the federal government. This may affect those who are filing or who have already filed in the following ways:

  • The relief checks may not have to be turned over to bankruptcy trustees.
  • The relief checks will also not count toward your income when filing for a Chapter 7 or Chapter 13.
  • Chapter 13 payments will not be recalculated based on the relief check.
  • Chapter 13 filers may have the option of modifying their repayment plans based on Covid-19 hardships.


If you are experiencing financial hardship due to Coronavirus, consider contacting a lawyer. Hiring a lawyer to assist you is one of the most important steps in successfully filing bankruptcy and avoiding legal consequences. Hiring an experienced bankruptcy lawyer is even more important during the COVID-19 pandemic as court policies and procedures are constantly in flux. Find someone who is already familiar with the bankruptcy court and rest assured knowing that your case is in competent hands. Contact the Covid19 Bankruptcy Lawyer Phoenix, AZ residents trust from Kamper Estrada, PLLC for a free initial consultation.