Can You Still File Bankruptcy in Sacramento, CA During the Government Shutdown?

When the federal government shuts down, millions of Americans feel the effects — from delayed paychecks to frozen programs and general uncertainty. If you’re already struggling with debt, the last thing you need is confusion about whether the courts are still open or whether you can seek financial relief.
The good news: you can still file for bankruptcy in Sacramento, California, during a government shutdown.
Here’s how it works, what to expect, and how to protect yourself during this period of disruption.

✅ The Bankruptcy Courts Are Still Operating

The United States Bankruptcy Courts are part of the judicial branch, not the executive branch, which means they generally remain open during a federal government shutdown.
While certain government functions pause due to funding lapses, the judiciary continues operating using reserve funds for a period of time. Even if the shutdown extends, “essential court functions” — such as filing new bankruptcy petitions, processing cases, and enforcing the automatic stay — continue.

In Sacramento, bankruptcy cases are handled by the U.S. Bankruptcy Court for the Eastern District of California, located at 501 I Street, Sacramento. As of now, the court continues to accept both Chapter 7 and Chapter 13 filings electronically and in person. That means you can still file your petition and immediately gain the protection of the automatic stay, which stops most collection actions, lawsuits, garnishments, and foreclosures.

⚖️ What Might Change During a Shutdown

Although you can still file your case, the shutdown can slow things down behind the scenes. Here’s what you should know:

1. Reduced Staffing: Some administrative or support staff may be furloughed, leading to longer response times for scheduling hearings or processing certain motions.
2. 341 Meeting Delays: The Meeting of Creditors (also called the 341 hearing) may be postponed or rescheduled if the assigned Chapter 7 or Chapter 13 trustee is affected by limited operations.
3. Plan Confirmation Delays: In Chapter 13 cases, confirmation hearings could be pushed back a few weeks.
4. Payment Processing: If your bankruptcy plan involves payments to the IRS or another federal agency, those payments could take longer to post.

While these issues can cause some short-term frustration, your right to bankruptcy relief is not suspended. Your case continues to move forward, even if it progresses more slowly than normal.

🏛️ Sacramento-Specific Considerations

In the Sacramento Division, bankruptcy cases are electronically filed using the CM/ECF system, which remains operational during a shutdown. Hearings are often conducted via ZoomGov or in person, depending on the judge.
If you’re represented by an experienced Sacramento bankruptcy attorney, your lawyer can continue to access the court’s systems, file petitions, motions, and schedules, and communicate with the trustee.

At Liviakis Law Firm, we’ve handled many cases during past government shutdowns. We closely monitor information from the Chapter 13 trustees (such as David Cusick and Lilian Tsang) and the court clerk’s office to track any schedule adjustments or administrative updates. Our goal is to make sure your filing goes through smoothly, with minimal delay or uncertainty.

💼 What If You’re a Federal Employee or Contractor?

Many Sacramento-area residents work for or contract with state and federal agencies — including employees at the Department of Veterans Affairs, CalTrans, the IRS, and other federal offices.
If you are a federal employee or contractor who has been furloughed or had pay delayed, your income may fluctuate — which could affect your bankruptcy means test or Chapter 13 plan feasibility.

Here’s what to keep in mind:

• Means Test Timing: The bankruptcy means test looks at your average income from the past six months. If your income temporarily drops during the shutdown, you may now qualify for Chapter 7 relief when you didn’t before.
• Chapter 13 Plan Adjustments: If your income interruption is temporary, your attorney can help you structure your plan payments to account for that gap.
• Proof of Income: You’ll still need to provide documentation of recent pay stubs or bank statements. If your pay is delayed, keep records of furlough notices or communications from your employer.

Every situation is unique — which is why consultation with a Sacramento bankruptcy lawyer is critical before you file.

💡 Why You Shouldn’t Wait to Get Help

Even during a government shutdown, your creditors don’t stop calling.
Collection lawsuits, wage garnishments, and foreclosure proceedings can continue under state law unless you file a bankruptcy petition to invoke the automatic stay. Waiting too long could mean losing your car, your paycheck, or even your home equity.

By filing now, you can:

• Stop all collection activity immediately
• Freeze interest and penalties on dischargeable debts
• Protect your home from foreclosure
• Pause wage garnishments
• Begin rebuilding your financial life under court protection

Delaying until the government reopens could cause unnecessary stress or missed opportunities for relief. If your financial situation is worsening, it’s almost always better to file sooner rather than later.

🧭 How to File During the Shutdown

Here’s how Liviakis Law Firm helps Sacramento residents file even in uncertain times:

1. Free Initial Consultation: We review your income, debts, and eligibility for Chapter 7 or Chapter 13.
2. Electronic Case Preparation: All petitions and schedules are filed online using secure, court-approved systems.
3. Immediate Automatic Stay: Once filed, your creditors must legally stop all collection efforts.
4. Guidance Through Delays: If your case involves postponed hearings or trustee meetings, we handle all communication and rescheduling for you.
5. Continued Representation: Even if the shutdown drags on, our firm continues to operate normally — your case will never stall because of government delay.

🔚 The Bottom Line

Yes, you can still file bankruptcy in Sacramento, CA during the government shutdown.
The courts remain open, filings continue, and your rights to debt relief are protected by law.
However, due to reduced staffing or administrative delays, your case may take slightly longer to process — which makes having an experienced local attorney more important than ever.

At Liviakis Law Firm, we’ve helped hundreds of Sacramento families navigate bankruptcy successfully — even during unpredictable events like government shutdowns and pandemics.
If you’re struggling with overwhelming debt, falling behind on bills, or facing creditor harassment, don’t wait for the government to reopen. Take control today.

📞 Call to Action

Contact Liviakis Law Firm for a free consultation with a Sacramento bankruptcy attorney.
We’ll review your finances, explain your options under Chapter 7 or Chapter 13, and help you file safely — even during a shutdown.

Call (916) 459-2364 or visit www.liviakislaw.com to schedule your consultation today.