The Administrative Office of the U.S. Courts and its IT contractor, BAE Systems, have confirmed that the systems supporting federal bankruptcy courts are back online following a cyberattack that occurred two weeks ago. The incident, which was disclosed on October 22, temporarily disrupted the Bankruptcy Noticing Center (BNC), a platform responsible for generating and transmitting bankruptcy notices across federal courts.
BAE Systems reported that no data was extracted during the incident, stating, “No other systems were affected. No data was extracted. There was no breach of any PII.” This assurance comes as federal court officials declared a “Bankruptcy Rules emergency” to manage the operational challenges posed by the outage, allowing judges to extend deadlines and issue related orders. This emergency declaration is set to last for 90 days, through January 2027, unless terminated earlier by court officials.
Restoration Efforts and Backlog Management
As of Monday, the BNC has begun processing a backlog of data from courts dating back to October 7, alongside new submissions. The court has indicated that paper notices generated during the outage will be prioritized based on production capacity and mailing readiness. Notices sent between October 13 and the recent restoration will include a warning indicating delays due to the cyberattack.
Federal court officials emphasized the importance of the emergency declaration, stating, “The declaration provides important flexibility to ensure that courts can address the effects of the outage and helps protect parties from potential prejudice resulting from delayed notice and related service disruptions.” This proactive measure aims to mitigate the impact of the disruption on legal proceedings.
Context of Recent Cyber Incidents
The attack on the BNC is part of a troubling trend of cyber incidents affecting federal systems in recent months. Other notable breaches have involved the Defense Department, the FBI, and the Department of Transportation, raising concerns about the security of sensitive government data. Recently, hackers released information on 41,000 employees of the Department of Homeland Security, prompting a swift response from agency officials who are working to address the situation.
As the BNC resumes operations, stakeholders are urged to stay informed about any changes to deadlines and procedures, particularly those affected by the recent disruptions. For further updates, individuals are encouraged to consult their legal representatives or the clerk’s office of their respective courts.
For more details on the incident and its implications, see the report from The Record.
