11/13/2025 | Press release | Distributed by Public on 11/13/2025 14:42
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UNITED STATES BANKRUPTCY COURT DISTRICT OF NEW JERSEY
NOTICE TO THE BAR AND PUBLIC CONCERNING
GOVERNMENT REOPENING AS APPLIED
TO THE UNITED STATES AS A PARTY
Following a lapse of Congressional appropriations funding the Federal Government and a resulting shutdown on October 1, 2025, Chief Judge Christine M. Gravelle issued General Order of the United States Bankruptcy Court for the District of New Jersey as Applied to Bankruptcy Cases and Adversary Proceedings with the intent to avoid any default or prejudice to the United States, debtors or other litigants, with respect to deadlines, motions or adversary proceedings which apply to, or may include the United States as a party.
Upon notice from the Director of the Administrative Office of the Courts that the Federal Judiciary would be entering Phase 2 of a lapse in appropriations on October 20, 2025, Chief Judge Gravelle entered a Shutdown Order on October 17, 2025, implementing the Court's Lapse in Appropriations Plan. The Lapse in Appropriations Plan, which was drafted in accordance with Volume 13, Chapter 2 of the Guide to Judiciary Policy and operates under the terms of the Antideficiency Act, 31 U.S.C. § 1341, et. seq., requires the Federal Judiciary to reduce judicial operations during Phase 2 and allows the performance of excepted functions only.
Whereby the lapse of Congressional appropriations funding has expired by the funding of the Federal Government through Congressional appropriations, please be advised that, on November 13, 2025, Chief Judge Gravelle entered the attached General Order Concerning Government Reopening as Applied to United States as a Party ("Reopening Order"). The Reopening Order: (i) reinstates matters relating to the United States that were suspended during the funding lapse and (ii) addresses deadlines as to the United States that were set to expire during and after the funding lapse. Although the Reopening Order does not affect deadlines or other rights concerning motions, adversary proceedings, or appeals involving parties other than the United States, litigants otherwise affected by the Order may seek relief from the Court by way of motion.
Dated: November 13, 2025 Jeanne A. Naughton, Clerk
UNITED STATES BANKRUPTCY COURT DISTRICT OF NEW JERSEY
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IN RE: ALL MATTERS IN THE UNITED STATES BANKRUPTCY COURT FOR THE DISTRICT OF NEW JERSEY INVOLVING THE UNITED STATES AS A PARTY |
GENERAL ORDER CONCERNING GOVERNMENT REOPENING AS APPLIED TO UNITED STATES AS A PARTY
The relief set forth on the following pages, numbered two (2) through four (4) is hereby ORDERED.
Dated: November 13, 2025
This matter is before the Court upon the November 12, 2025 reopening of the Federal Government by funding through Congressional appropriation, thereby terminating the period of a lapse in appropriations (the "Lapse Period") addressed by the Court in its prior General Orders entered on October 1, 2025 (the "Phase I General Order"), and October 17, 2025 (the "Phase II General Order").
During this Lapse Period, the United States represented to the United States District Court for the District of New Jersey ("District Court") that certain Department of Justice attorneys and employees of the federal government, including the United States Attorney's Office for the District of New Jersey ("U.S. Attorney's Office"), were prohibited from working, even on a voluntary basis, except in very limited circumstances, including "emergencies involving the safety of human life or the protection of property." 31 U.S.C. § 1342. This lapse in appropriations required a reduction in the workforce of the U.S. Attorney's Office and other federal departments and agencies, including the Office of the United States Trustee, with respect to civil cases.
In response, this Court entered its Phase I General Order suspending all litigation in a bankruptcy case or adversary proceeding pending in this District, involving as a party the United States of America, its agencies, and/or any other party represented by the Department of Justice or the United States Attorney's Office ("the United States"), until such time as the federal government was funded by congressional appropriation or for a period set forth in any relevant District Court Standing Order.
Insofar as the Lapse Period has expired by the funding of the Federal Government through Congressional appropriation, it is hereby
ORDERED that, absent other direction or order from the Court, all pending adversary proceedings, contested matters, or litigation (including motions and deadlines) related to the United States' claims and in which the United States or its' employees are direct parties to such proceeding are hereby reinstated as of December 1, 2025; and it is
FURTHER ORDERED in all pending cases in which the governmental proof of claim bar date and administrative expense bar date were set to expire during or after Lapse Period, those bar dates are hereby extended as to the United States, for 43 days from the existing bar date, representing the number of calendar days between the October 1, 2025 lapse in Congressional appropriations and the November 12, 2025 funding of the Federal Government through Congressional appropriation. (By way of example, if the Court had set a governmental bar date of October 31, 2025 prior to the governmental shutdown, pursuant to terms of this Order, the new governmental bar date would be December 13, 2025); and it is
FURTHER ORDERED that any deadline that was set to expire during or after the Lapse Period in a Joint Scheduling Order or Joint Mediation Order in any pending adversary proceeding to which the United States is a party, including deadlines for completion of discovery and filing dispositive motions, are hereby extended for 43 days from the existing deadlines. Trial dates will be adjourned by the chambers of the presiding judge to a date not less than 43 days from the currently scheduled trial date. Upon the request of a party the Court may, in its discretion, hold a scheduling conference to further modify the dates based upon the facts of each case; and it is
FURTHER ORDERED that in any case where the deadline to file a complaint objecting to dischargeability was set to expire during or after the Lapse Period, as to the United States, that deadline is also hereby extended for 43 days from the existing deadline; and it is
FURTHER ORDERED that any deadline to object to discharge, as to the United States, which expired during the Lapse Period or within the first fourteen calendar days from the entry of this Order, shall be granted an extension of fourteen calendar days from the date of this order; and it is
FURTHER ORDERED that notwithstanding the above, as to the United States, with respect to any governmental proof of claim bar date and/or deadline to object to dischargeability that would otherwise be reinstated by the terms of this Order within the first fourteen calendar days from the 4 entry of this Order, such bar date or deadline shall be granted an additional extension of fourteen calendar days. (For clarity, this provision affects any bar date or deadline which, after the 43- day extension, expires on or before November 27, 2025); and it is
FURTHER ORDERED that this order does not affect deadlines or other rights concerning motions, adversary proceedings, or appeals involving parties other than the United States; and it is
FURTHER ORDERED that any litigant affected by this Order may seek relief from the Court by motion; and it is
FURTHER ORDERED that nothing in this Order shall preclude any party from seeking further extensions of any deadlines set forth herein in accordance with the Federal Rules of Bankruptcy Procedure, United States Bankruptcy Court for the District of New Jersey Local Bankruptcy Rules, United States Bankruptcy Code, or other relevant authorities; and it is
FINALLY ORDERED that the Court may, in any particular matter, vary the effect or operation of this Order by separate ruling and respective docket entry.
The Court may renew or modify this Order depending on developments and incorporates by reference any relevant Standing Order entered by the District Court required to continue its operations in the most efficient manner.
The Court shall distribute this Order by:
a. Electronic mail to all registered CM/ECF users;
b. Mail to all self-represented debtors in a bankruptcy case;
c. Mail to all self-represented plaintiffs and defendants in adversary proceedings; and
d. Posting the Order and a Notice to the Bar on the Court's website.