On April 6, 2020 Chief Judge DiFiore announced an expansion of the types of cases the court will adjudicate in the near future. While the specifics are yet to be unveiled, a plan is in the works for judges to conduct settlement and compliance conferences by phone or video; with the primary goal stated as facilitating settlements in existing cases. In addition, the court will make an effort to reduce its motion backlog, in a further effort to clear its existing backlog of cases and push them forward.
Accordingly, defendants in existing debt relief cases may continue to be prosecuted. In other words, their cases may be moving nearer to their eventual end. Whether the appearance is conducted telephonically or by video, it is more important to note that it appears they will be conducted in the near future, thereby pushing the case forward and creating mandates by the Court. These Defendants may be called on to defend or resolve theses cases (most likely by settlement) in the near future. If one is not in the position to do so, whether based on a reduction in income, loss of job or other adverse action as a result of the Covid-19 outbreak (or otherwise), this may be problematic.
This announcement by the Court may also signal a quick return to the filing of debt collection lawsuits by creditors. Those of you with outstanding debt may be subject to a lawsuit in the near future. We will continue to monitor the changes in the court system and hope to keep you apprised of its ramifications, but it is important to be ready to consider this distinct possibility.
If you find yourself in need of legal representation, please contact the office for an evaluation. It is important to note that current Pro Se Defendants, in some cases, may still be a good fit for private legal defense. Additionally, those that find themselves a Defendant in a debt lawsuit in the near future should contact to the office for an evaluation. If one is not in a position to defend themselves or settle these lawsuits, they should consider contacting our office for a no-cost bankruptcy evaluation.
Call the Law Office of Simon Goldenberg, PLLC at (888) 301-0584 for a free legal evaluation.