The Bankruptcy Code is full of deadlines. Examples abound: Courts will presume nondischargeable any luxury goods or services debtors purchase on or within 90 days of their petitions. The same goes for cash advances made on or within 70 days bankruptcies. Creditors have until 60 days after the first meeting of the creditors to challenge these purchases, which debtors can rebut. Debtors have 15 days after their cases are filed to complete their bankruptcy schedules, if they did not file them with their petitions. I could go on, but you get the idea. New York bankruptcy debtors may be curious about what these time periods mean. Put differently, are these business days (especially for court filings)? Do they include weekends? Holidays?
The short answer to these questions is that they are calendar days.
As for the longer answer, the Bankruptcy Code does not specify what a “day” is. Rather the Federal Rules of Bankruptcy Procedure includes a rule, Rule 9006, titled, “Computing and Extending Time,” which sounds like something from a science fiction story but answers the essential questions about deadlines debtors might be asking.
Generally, the day that triggers a time period, e.g. the filing date, is excluded from the computation. Then, debtors must add the number of days within the time period, including Saturdays, Sundays, and legal holidays. The last day of the period is also included. So if the filing date was on Thursday, October 12th, then the schedules would be due Friday, October 27th.
So, what happens if the last day is a Saturday, Sunday, or legal holiday? According to Rule 9006, the time period extends until the next day that is not a Saturday, Sunday, or legal holiday, and that day is the last day in the time period.
This isn’t always the last word, though. Rule 9006 authorizes federal courts to issue orders regulating how parties can file papers when the clerk, who accepts and stamps filings, is inaccessible. In the Bankruptcy Court for the Eastern District of New York, which handles Brooklyn bankruptcy cases, and Central Islip, which hears Suffolk County bankruptcy cases, the court has a standing order governing after-hours filings. The courthouse in Brooklyn has a night depository that is always open, and the one in Central Islip is open until 7:00 p.m. on business days excluding legal holidays. More details on the Eastern District’s after-hours rule are here.
Of course, nowadays electronic filing is accepted throughout the federal courts, so late-night deadlines shouldn’t be an issue. I’ve written before on how to keep track of your bankruptcy.
Incidentally, “legal holidays” are New Year’s Day, Martin Luther King Jr.’s Birthday, Washington’s Birthday, Memorial Day, Independence Day, Labor Day, Columbus Day, Veterans’ Day, Thanksgiving Day, Christmas Day, and any holiday declared by the president or Congress. Holidays declared by state governments count too. The Bankruptcy Court for the Eastern District of New York lists its court holidays here.
The debtors who are most likely to make mistakes regarding computing and extending time are those who choose to file without a lawyer. If your financial situation is deteriorating, then consulting with an experienced New York bankruptcy lawyer can help you strategize your options and avoid filing mistakes.
For answers to more questions about bankruptcy, the automatic stay, effective strategies for dealing with foreclosure, and protecting your assets in bankruptcy please feel free to contact experienced Brooklyn bankruptcy attorney Bruce Weiner for a free initial consultation.
