Bankruptcy law another blow for Katrina victims
Page | 1 | 2 | 3 |

Current bankruptcy cases
Bankruptcy filings are climbing ahead of the implementation date on the new law, and experts expect this trend to continue through Oct. 16. "I can say that there have been increased filings of bankruptcy, but most of that trend has only started in the last couple of weeks," says Botes. "People put off filing for bankruptcy as long as possible, so although they've known about the pending change for months, they have just started filing.

"Many of our clients have files that aren't complete, and they simply can't make it into our offices and we can't contact them," he says.

Prochaska notes that many courthouses are closed due to the effects of the hurricane.

"I've heard second- and thirdhand that the conditions of the courthouses in the affected area are very bad," he says. "In most courthouses, the document storage is in the basement, while the people are on the second or third floor or above, so many of the documents already filed may have been destroyed."

Some courts, such as the United States Bankruptcy Court, Eastern District of Louisiana, which is located in New Orleans, are closed. Chief Judge Jerry Brown has extended all bankruptcy filing deadlines until Sept. 26 and will also be rescheduling trial and hearing dates. This court will relocate from New Orleans to Baton Rouge. In the U.S. Bankruptcy Court, Southern District of Mississippi, debtors who had been scheduled to appear between Sept. 8 and Sept. 15 have been granted a stay until Oct. 6. This court is also currently closed.

Help available
Both the American Bar Association and the American Bankruptcy Institute have numerous lawyers who have volunteered to help Katrina victims. More than 900 ABA members have volunteered to assist Katrina victims with any legal matters on a pro bono basis. Prochaska says that victims of natural disasters typically need help with more immediate needs first, such as filing insurance claims, but that once those immediate needs are taken care of, the ABA's volunteers will be available to help with bankruptcy cases. ABI members are experts in bankruptcy, and their assistance is specifically targeted to that area. Here's how to get help:

Go to the American Bar Association Web site for information on legal services available to Katrina victims. Victims in Alabama should call (800) 354-6154; victims in Louisiana should call (800) 310-7029, and victims in Mississippi should call (866) 255-4495.

Go to the American Bankruptcy Institute's Web site to contact volunteer attorneys directly for help with bankruptcy issues.