Business Debtor - A corporation, partnership, or unincorporated association may not file a bankruptcy petition or other court documents, or appear in court, without an attorney. See Local Bankruptcy Rule 9011-2(a).
 

Individual Debtor or Creditor – An individual debtor or creditor is not required to have an attorney in order to file a bankruptcy petition, file other documents, or represent themselves at court hearings. This is true regardless of a chapter 7, chapter 11, or chapter 13 bankruptcy case. However, it is difficult for an individual to be aware of and protect all rights without the assistance of a competent bankruptcy attorney.

FAQ Type:
Before Filing Bankruptcy

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No Related FAQs

An Attorney Who does Not Regularly Practice Bankruptcy law is often involved in a bankruptcy adversary proceeding because the attorney was involved in a lawsuit filed pre-petition or the attorney represented a creditor or had an existing relationship with another party in the past. This can present a significant learning curve for an attorney; however, the court expects that all attorneys appearing in adversary proceedings be informed of court procedures, statutes and rules. Inexperience with bankruptcy law is not a valid excuse for filing documents late or requesting a continuance of a court proceeding due to lack of preparation. An attorney should set aside time to become informed, to timely communicate with opposing attorneys, to file documents on time, and to prepare for court proceedings. If necessary, consult with a bankruptcy attorney or hire a bankruptcy attorney as co-counsel.

FAQ Type:
After Filing Bankruptcy

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No Related FAQs

An Attorney Who is Not Licensed in California can still represent a creditor in this court by obtaining court approval to appear pro hac vice.  It may be difficult for the attorney to provide legal services due to travel and because in certain scenarios telephonic appearances at court hearings are not allowed. A local attorney must also be designated as co-counsel. All attorneys should read the Local Bankruptcy Rules, especially LBR 2090-1.

Download Form: Application of Non-Resident Attorney to Appear in a Specific Case
Download Form: Order on Application of Non-Resident Attorney to Appear in a Specific Case

FAQ Type:
After Filing Bankruptcy

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No Related FAQs

An Adversary Proceeding is Different From the Main Bankruptcy Case - The main bankruptcy case involves a debtor and the creditors of that debtor, and the main bankruptcy case has its own separate electronic docket and case number. An "Adversary Proceeding" in bankruptcy court has the same meaning as a lawsuit in other courts. This means that one or more "plaintiff(s)" file a "complaint" against one or more "defendant(s)." In many situations an adversary proceeding is required if a plaintiff wants to obtain a particular type of relief. Consult Federal Rules of Bankruptcy Procedure Rule 7001 to determine if a particular type of relief requires an adversary proceeding.

When an adversary proceeding is commenced, the clerk's office starts a separate electronic docket to record all activity in the adversary proceeding. Each adversary proceeding has its own "adversary number" which can be found on the first page of the complaint, right below the main bankruptcy case number. An example is 2:AP:12-01501-VZ. This means an adversary proceeding (AP) filed in the Los Angeles division in calendar year 2012 and assigned to the Judge Vincent Zurzolo. After an adversary complaint is filed, the defendant has a specific deadline to file and serve a written response to the complaint, and then a series of pre-trial hearings/conferences take place until the lawsuit is settled, dismissed, or goes to trial.

FAQ Type:
After Filing Bankruptcy

See Also:
Case Number, What Does It Mean?

After starting a bankruptcy case, a debtor must stay closely involved with all activities in a bankruptcy case until a discharge is received AND the bankruptcy case is closed. In some ways, bankruptcy is like a deal that Congress has made with a debtor. If a debtor follows the bankruptcy rules and meets certain financial tests, a debtor obtains debt relief. But if a debtor does not pay attention to the bankruptcy case and does not follow the bankruptcy rules, rights will be lost, benefits delayed, and if the bankruptcy case is closed without a discharge being entered, a debtor may have to pay extra to reopen the bankruptcy case to achieve the debt relief desired. In some situations a bankruptcy case may be dismissed. Some ways that a debtor must remain involved with the bankruptcy case are:

A) Read all Mail Sent by the Court and Other Parties Related to the Bankruptcy Case – Pay close attention to all information sent by the court because a good way for a debtor to protect its rights is by staying informed about the bankruptcy case. For example:

• The Court may notify a debtor that certain forms were not filed, and there will be a deadline for filing the forms to avoid dismissal of the case. Generally all information is required to be filed no later than 14 days after a bankruptcy case was opened, and if not filed, the bankruptcy case may be dismissed with an order barring the debtor from filing again for a specific period of time (i.e., 180 days or more).
• A creditor may file a lawsuit to have its debt deemed non-dischargeable, and it is imperative that the complaint be answered within thirty (30) days of a summons being issued by the court.
• A creditor may file a motion asking the judge to allow the creditor to take action against the debtor. The written notice of motion will indicate the deadline for filing a written response, usually fourteen (14) days before the hearing. 

B) Notify the court of any change in mailing address -- If a debtor has a change of mailing address, it is the debtor's responsibility to promptly file a change of address form so that the Clerk's Office, trustee, and creditors know where to mail documents to the debtor. 

Download Form: Change of Address  (The debtor should also mail a copy of the change of address form to the trustee, U.S. Trustee, and all creditors.)

C) Understand the Concept of Due Process for all Parties – Due Process means that all parties must have the opportunity to prepare for the court hearing before the court makes a ruling. To prepare for a court hearing, a party must have time to prepare and review issues so that the party can determine the right action to take or which arguments to address. Bankruptcy court is not like television court programs. It is not appropriate to surprise the judge or surprise the trustee or creditor by showing up at a hearing with new witnesses or new evidence. The court only becomes involved when there are two sides that need a resolution. This means that the court AND the other party must be allowed to prepare for a court hearing. Therefore:

• A debtor must be presented with evidence in time to respond with its own evidence;
• A trustee or creditor must be presented with evidence in time to respond with its own evidence; and
• The court must be provided with evidence from all parties far enough in advance of a court hearing so that the court can properly review and consider all arguments and evidence.
   

D) Follow all Deadlines for Filing Documents and Submitting Evidence – When court hearings are scheduled or when the clerk's office is preparing to take action, a debtor will be sent a notice by the court, the trustee, or a creditor. The notice will clearly state the deadline for completing the action required, such as filing a document with the court, filing a written response to a motion, and/or mailing the response to the trustee or creditor. Therefore, pay close attention to deadlines for filing documents, deadlines for filing evidence to support a legal argument, and making court appearances because there may be serious financial consequences.

• If there is a deadline for filing a document or other evidence (and serving it on the opposing party), that deadline is the date the document must be received by the court. If a debtor mails a document to the court, generally allow at least three business days so that it is timely received. The postmark date does not count. Generally, documents and evidence must be filed with the court AND mailed to the other party fourteen (14) days before a hearing.
• Judges will generally not allow anyone to argue facts and the law at a hearing if the arguments were not written and timely filed and served on the opposing party.
• Following deadlines gives the opposing party confidence that the debtor is involved and is acting responsibly and participating in the process. Communication is a good way to get the opposing party to be patient and work collaboratively.

E) Promptly Communicate With Attorney – If a debtor has an attorney, and the attorney contacts the debtor about a court date or other papers that need to be filed, the debtor should call the attorney immediately. Do not wait until the last minute, as there are court deadlines that must be complied with, and it is not reasonable to expect the attorney to meet the deadline without a debtor's cooperation and information. Just because a debtor has an attorney does not mean that the court will reset hearing dates or give extra time to submit evidence and file documents. Failure to meet court deadlines or be present at court hearings can result in a bankruptcy case being dismissed or in the court granting a motion in favor of a creditor, EVEN IF A DEBTOR HAS AN ATTORNEY.

F) Attend the Mandatory 341(a) Meeting of Creditors – Within thirty (30) to forty-five (45) days after a bankruptcy case is filed, the debtor must show up at the Office of the United States Trustee so that a trustee and creditors can ask questions about the debtor's financial situation. This meeting is required under section 341(a) of the Bankruptcy Code and is called a 341(a) Meeting of Creditors. The clerk's office mails a notice that contains the date, time, and location of the 341(a) Meeting.

G) Attend all Court Hearings – Most court hearings are scheduled because a trustee or creditor filed a motion. If the court sets a hearing date to rule on a motion, the debtor should timely respond to the motion AND attend the hearing, regardless of whether or not the debtor has an attorney. 

• At a court hearing, the judge generally will explain the ruling to a debtor, and if the debtor has filed a written motion or response, the judge will allow the debtor to state the debtor's position on the motion.
• If a debtor has an attorney, this is an excellent time to talk with the attorney before and after the court hearing. Often a debtor has no defense to the motion. However, attending a court hearing is a good method for understanding the judge's ruling.
• Often a debtor is not represented by an attorney, and therefore the debtor may need to talk with the judge to understand the impact of a ruling. This is important because often a judge's ruling will be made in a simple order that either "denies" or "grants" a motion, without any other explanation or reasoning. A debtor will NOT be able to obtain an explanation by calling the judge's staff, calling clerk's office staff, or writing a letter to the judge.

H) Be Honest – Never hide information from the court or trustee and never be untruthful about details of financial condition. The bankruptcy case trustee, U.S. Trustee, or other parties can ask the court to deny a discharge of debts if a debtor provides false information. This may result in the loss of property and dismissal of a bankruptcy case without a discharge and loss of the bankruptcy case filing fee. The debtor may have transferred or given property to a friend or relative before or after the bankruptcy case was filed, and the court or trustee has the right to examine such transactions. Do not hide this information, as the bankruptcy court process is designed to benefit all creditors in a certain priority and plan for fairness. Sometimes property must be returned to the bankruptcy estate so that it can be distributed in accordance with these rules, and hiding information can be considered bankruptcy fraud and may result in criminal prosecution.

FAQ Type:
After Filing Bankruptcy

See Also:
Bankruptcy Case Vs. Adversary Proceeding, What Is The Difference?
Hearing, Do All Motions Require One?
Motion And Notice Of Motion, What Is It And Must A Response Be Filed?

Bankruptcy Code - The Bankruptcy Code is a collection of statutes that govern the rights and duties of individuals, businesses, trustees, and attorneys that are involved in a bankruptcy case. These statutes will often be cited in a bankruptcy case by parties who are discussing various rights and duties. The Bankruptcy Code is also called "Title 11 of the United States Code" or "11 U.S.C."

A copy of the Bankruptcy Code is available in law libraries, may be purchased from the Government Printing Office or some law bookstores or viewed online.

Bankruptcy Procedure- Procedural rules regarding bankruptcy cases are found in the Federal Rules of Bankruptcy Procedure ("FRBP") and Local Bankruptcy Rules for the Central District of California (LBR). Individual judges may also have their own procedures, forms and instructions.

Related Laws – Other laws of federal, state, or municipal governments may be applicable in a bankruptcy case because there are many situations that a debtor may be in at the time a bankruptcy case is filed. Examples are family law, contracts, real estate transactions, unsecured loans, taxes, medical situations, personal injury, etc. It is recommended to consult a bankruptcy attorney to discover which rules apply to the situation.

FAQ Type:
Before Filing Bankruptcy

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No Related FAQs

Petition Package – This is a compilation of all forms required to start a particular chapter bankruptcy case.

Petition – The document called a "Petition" is the official request to open a bankruptcy case, and the Petition contains basic information about a debtor's contact information, attorney, chapter number, and signature.

Other Forms – While a Petition opens a bankruptcy case, this is only the beginning of the process. Approximately thirty (30) more documents are required so that the court and trustee knows how to properly treat a debtor and the debtor's financial situation:

These documents have various titles including: "Schedules" "Exhibits" and then a combination of other forms titled "Statements," "Declarations," "Summary," "Disclosure," "Verification," "Notice," "Debtor's Certification," "Plan" (chapter 13 only), and "Venue Disclosure" (chapter 11 only). It requires time and organization to fill out all of the forms and be educated on the bankruptcy process, so please budget enough time to gather the information and complete the petition package documents before you need to file a bankruptcy case.

FAQ Type:
Before Filing Bankruptcy

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No Related FAQs

A debtor does not need to send a copy of its bankruptcy petition package to any creditors because the court will mail a notice of the bankruptcy case to all creditors listed in the debtor’s bankruptcy petition package. However, a debtor may wish to call or write to creditors who are taking action against a debtor (e.g. foreclosure, lawsuits, daily phone calls), or an agency that is executing on a judgment (e.g. sheriff). If so, a debtor should provide the creditor or sheriff with a bankruptcy case number or a conformed copy of the front page of the bankruptcy petition package.

FAQ Type:
After Filing Bankruptcy

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No Related FAQs

A) An individual generally files for bankruptcy in order to obtain one or more of the following benefits:

1. have certain debts discharged completely or sort out which debts are dischargeable from those debts which will still be owed;
2. receive extra time to pay debts;
3. receive a break from creditor calls while debt relief is arranged;
4. have the assistance of a trustee to pursue lawsuits or other claims that the debtor owns so that the money obtained can be used to pay creditors; or
5. eliminate certain judgment liens if those liens impair an exemption.

B) A business files for bankruptcy to obtain similar benefits, including the possibility of operating the business while debt relief is arranged. A business other than a sole proprietorship is not entitled to receive a discharge of debts in a chapter 7 case.

There are negative consequences of filing for bankruptcy, and these may outweigh the benefits. For example, a potential debtor may need to resolve one debt (such as a mortgage), but if the home does not have any equity, there may not be any benefit to filing for bankruptcy. It is highly recommended that an individual or business owner who is considering filing for bankruptcy consult with a bankruptcy attorney to learn how a bankruptcy may affect its financial situation.

FAQ Type:
Before Filing Bankruptcy

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No Related FAQs

The common chapters of the Bankruptcy Code are:

CHAPTER 7 - Chapter 7 refers to a "liquidation" bankruptcy and can be used by an individual to obtain a discharge of many debts without making payments in the future. It may also be used by a business that wishes to liquidate its business assets under the protection of the bankruptcy court.

A trustee is appointed to take control of certain asserts of the debtor and to sell or distribute these assets for the benefit of creditors. A trustee can also recover certain assets that have already been distributed and bring those assets back into the bankruptcy estate.

Creditors generally have the right to file "claims" which identify the amount of money owed and the documents supporting the claim. In some situations may be able to file a written request (motion) to the court for an order allowing the creditor to take back a residence, automobile, or other property that serves as collateral for their claims.

CHAPTER 11 - Chapter 11 is often called the "reorganization chapter," and it allows a corporation, partnership, or individual to reorganize property and debts without liquidating all assets. The basic goal is for a debtor to retain control of property and present a "Plan of Reorganization" for repaying creditors. If the creditors accept the Plan of Reorganization, and the court approves the plan, a debtor is able to reorganize personal, financial, or business affairs.

A trustee may be appointed if a motion is filed with the court and the court agrees that a trustee is needed to manage the affairs of the debtor.

Creditors have the right to file "claims" which identify the amount of money owed and the documents supporting the claim. The can also object to a debtor's plan proposal, and in some situations file a written request (motion) for an order allowing the creditor to take back a residence, automobile, or other property that serves as collateral for their claims.

CHAPTER 13 -- Chapter 13 refers to reorganization of debts by an individual who has regular income and debts that are below certain statutory limits. A Chapter 13 debtor proposes a "Chapter 13 Plan" which proposes a repayment schedule. The plan essential identifies details for the debtor to retain control of property, keeping up with current debts, and repay at least some of the past due debts.

A trustee is appointed to monitor activity in the case and report to the court on whether or not the debtor is meeting obligations. If a debtor is not meeting obligations, the trustee or a creditor can ask the court to dismiss the bankruptcy case. If a debtor's income rises, the trustee or a creditor can ask the court to increase the amounts paid to creditors.

Creditors have the right to file "claims" which identify the amount of money owed and the documents supporting the claim. The can also object to a debtor's plan proposal, and in some situations file a written request (motion) for an order allowing the creditor to take back a residence, automobile, or other property that serves as collateral for their claims.

Basics of bankruptcy law.

FAQ Type:
Before Filing Bankruptcy

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No Related FAQs

A) Using Computer to Print Documents from CM/ECF PACER - Electronic docket information and images of all documents filed in a bankruptcy case or adversary proceeding may be retrieved and printed via the CM/ECF PACER system (Public Access to Court Electronic Records). For cases closed in the Los Angeles Division prior to February 1, 2001, please call the Court’s Call Center at (855) 460-9641 for assistance.

B) Clerk's Office at Each Division – Copies may be ordered at the Clerk's Office in person electronically or by mail, and there is a search fee and a per-page fee. If ordered by mail, include a self-addressed, stamped envelope to return the copies.

FAQ Type:
General Info

See Also:
Bankruptcy Case, What If The One I Am Interested In Has Been Archived?
Discharge, How Do I Get A Copy?
Document, How Do I Get a Certified Copy?
Document, What If The One I Need Is Not On The Electronic Docket?

The Bankruptcy Court has five divisional offices located throughout the Central District of California. Divisional Offices are located in Santa Barbara, Woodland Hills, Los Angeles, Santa Ana, and Riverside. If you need to file a document in person at the bankruptcy court, you should file the document at the intake window of the clerk’s office of each division for cases that have been filed in that particular division only.
The specific location is determined by the zip code of a debtor's residence address or location of principal assets of the business.

If a document is being filed electronically through CM/ECF, the electronic filing automatically routes the document to the correct bankruptcy case docket, regardless of the division in which the bankruptcy case was filed.

FAQ Type:
Before Filing Bankruptcy

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No Related FAQs

Normal Court Hours to File Documents Filed at the Courthouse – The bankruptcy court filing window is normally open from 9:00 a.m. to 4:00 p.m., Monday through Friday. Closed on Federal Holidays, dates posted on our News & Announcements page during the month of January.

Petition Packages and Documents Filed by CM/ECF – The CM/ECF system ordinarily accepts filing of bankruptcy petitions and documents 24 hours per day, seven days per week. 

Filing Emergency Petitions or Documents After Normal Court Hours -- For a debtor or creditor who is not filing a bankruptcy petition package or other documents through ECF, and needs to file the petition package or documents after court hours, it may be possible to do so, but only by a pre-approved appointment. Contact the appropriate intake office to arrange for an emergency filing:

Santa Barbara: (805) 884-4878
San Fernando Valley: (818) 587-2865
Los Angeles: (213) 894-6751 or 894-3141
Santa Ana: (714) 338-5330
Riverside: (951) 774-1102

FAQ Type:
Before Filing Bankruptcy

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No Related FAQs

Yes, the agency that provides the credit counseling service will provide a certificate that the course was completed, and the agency that provides the Personal Financial Management service will provide a certificate that the course was completed. If spouses file a joint bankruptcy case, both spouses must take each class and obtain their own separate Certificates of Completion for each class.

FAQ Type:
Before Filing Bankruptcy

See Also:
No Related FAQs

Credit Report - In general, the Bankruptcy Court does not control the actions of credit reporting agencies. Debtors must directly contact credit reporting agencies to discuss how long a bankruptcy case remains on a credit report. If debtors have questions about this or have problems gaining cooperation from credit agencies, a debtor may contact the Federal Trade Commission, Consumer Response Center (CRC-240), Washington, D.C. 20580. The telephone number is (202) 326-2222. Here are general rules:

Improper Involuntary Bankruptcy Case - If a party has improperly filed an involuntary bankruptcy petition against a debtor, the bankruptcy court may enter an order prohibiting credit reporting agencies from reporting the bankruptcy on the debtor's credit report.

Voluntary Bankruptcy Case - The Fair Credit Reporting Act, 15 U.S.C. Section 1681 et seq., is the law that controls credit reporting agencies. The law states that credit reporting agencies may not report a bankruptcy case on a person's credit report after ten (10) years from the date the bankruptcy case is filed. Generally, bad credit information is removed after seven (7) years. The larger credit reporting agencies belong to an organization called the Associated Credit Bureaus. We are informed that the policy of the Associated Credit Bureaus is to remove successfully completed Chapter 13 cases from the credit report after seven (7) years to encourage debtors to file under this chapter.

Publication from the Office of the U.S. Trustee: Informational Materials Regarding Your Credit Report Including How to Dispute Errors or Incorrect Information

FAQ Type:
After Filing Bankruptcy

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No Related FAQs

Very soon after the bankruptcy petition is filed, the clerk's office mails a notice to creditors that a debtor has filed for bankruptcy. This notice is titled “Notice of Chapter 7/11/13 Bankruptcy Case, Meeting of Creditors, Deadlines.” A debtor must list all of its creditors when filing the bankruptcy petition package so that each creditor is aware of the bankruptcy. The court only mails a notice to creditors that are listed; therefore, a debtor must ensure that all creditors are listed. Generally, creditors are shown in two places in a petition package:

A) Schedules - Creditors should be found on the proper Schedules according to the type of debt.

List of Schedules and descriptions of the types of debt for each Schedule.

B) Master Mailing List - Creditors should be found in alphabetical order on the Master Mailing Matrix with the correct street address, city, state, and zip code for each creditor.

FAQ Type:
After Filing Bankruptcy

See Also:
No Related FAQs

A discharge is a court order that forgives a debtor of certain specific debts. The discharge order prohibits a creditor from attempting to collect from a debtor a debt that has been discharged. However, not all debts are dischargeable. Parties can file written requests (adversary complaints) to have the court determine if a debt is dischargeable.

A) Creditor, Trustee, or U.S. Trustee Asks the Court to Determine if There is a Discharge

1) Some unsecured debts are not dischargeable because Congress has determined they are types of debts that should not be discharged because of public policy reasons. These debts are listed in Section 523 of the Bankruptcy Code and usually require that a debtor prove the debt should not be discharged. Examples are:

• spousal and child support obligations;
• certain tax debts;
• most educational loans;
• debts related to injuries or death caused by driving while intoxicated; and
• debts arising from fraudulent conduct.

2) It is also possible for a debtor to be denied a discharge of all unsecured debts if a debtor has not been honest, forthcoming, or cooperative in the bankruptcy case. These scenarios are listed in Section 727 of the Bankruptcy Code and usually involve the U.S. Trustee, a trustee, or a creditor filing a lawsuit in a chapter 7 bankruptcy case to determine that the debtor should be totally denied a discharge.

3) Debts that are secured by real or personal property are not dischargeable. For example, a creditor may be able to seize property even after a discharge is granted because the debtor has not kept up with payments. Even though the creditor may not collect on the unsecured portion of the debt, the property can still be foreclosed upon (residence, automobile, etc.).

B) Debtor asks the court to determine if a debt can be discharged -- Some creditors have obtained court judgments, and then filed a "lien" which can be used to sell property of the debtor. In some situations, a debtor may file a motion asking the court to remove such a lien. Also, a debtor may file an adversary proceeding asking the court to rule that other debts are dischargeable.

FAQ Type:
After Filing Bankruptcy

See Also:
Bankruptcy Case Vs. Adversary Proceeding, What Is The Difference?
Motion And Notice Of Motion, What Is It And Must A Response Be Filed?