Attorneys -- The bankruptcy court is prohibited from directing you to a particular attorney.  View list of local county bar associations and regional bankruptcy law groups.

Free or Low Cost Legal Assistance -- An individual debtor who is unable to afford an attorney may qualify for free legal representation. View list of phone numbers for low cost and free legal assistance.

Friends or Bankruptcy Petition Preparers - The court often encounters debtors who cannot afford to pay an attorney to help them prepare bankruptcy forms. Sometimes a debtor pays a few hundred dollars to a "friend" to help file for bankruptcy. Often this is a mistake because there are many forms to fill out, many important deadlines, and many notices that a debtor will receive from the court. Often, this "friend" does not have access to the correct forms or gives bad advice to the debtor. Bad advice may be worse than waiting to file for bankruptcy because bad advice may result in a bankruptcy case getting dismissed. A debtor does not get a refund if the bankruptcy case is dismissed, and a debtor may not even get the relief that was hoped for.

It is recommended that a debtor spend time on the court's website studying all of the required forms instead of relying on a person who may not be properly informed or educated in bankruptcy processes, or may not have the debtor's best interest in mind. An individual who cannot afford an attorney may come to the court before filing for bankruptcy and obtain a list of phone numbers for low-cost or free bankruptcy assistance. See Bankruptcy Self-Represented Litigants Committee for information.

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Before Filing Bankruptcy

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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.

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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.

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Before Filing Bankruptcy

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FOR DOCUMENTS FILED AT THE COURTHOUSE OR MAILED TO THE COURTHOUSE

Bankruptcy Petition Packages

• Chapter 7 petition and schedules: Original only.
• Chapter 11 petition and schedules: Original only.
• Chapter 13 petition and schedules: Original only.

All subsequent documents: The original document and one copy.

If a debtor or party wishes to have a “filed” stamped copy of the petition or other document, then one additional copy is required.

To have the court mail a “filed” stamped copy back to your address, a self-addressed, stamped envelope must be submitted with the extra copy with sufficient postage to cover the cost of mailing the “filed” copy.

FOR DOCUMENTS FILED USING CM/ECF - For bankruptcy petition packages and other documents that are filed using CM/ECF, one copy of that document must also be delivered the same day to the intake section of the clerk’s office by mail or personal delivery. The copy must be accompanied by a copy of the CM/ECF receipt, called a “Notice of Electronic Filing” or “N.E.F."  See the Court Manual.

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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.

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Before Filing Bankruptcy

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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.

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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.

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Avoid Dismissal of a Bankruptcy Case - In order for a bankruptcy case to proceed, it is a debtor's responsibility to provide the court with all information that is required by the law. If this information is not provided, a bankruptcy case may be dismissed without a debtor obtaining a discharge of debts.

At the beginning of a bankruptcy case, if all of the required information is not filed with the court, the Clerk's Office will usually mail to the debtor a notice that identifies which documents or signatures are missing. The bankruptcy case will be dismissed without a hearing if this information is not provided within 14 days after a bankruptcy case is filed, unless permission is obtained from a judge to extend this deadline. Some items are due no later than 45 days after the bankruptcy case is filed, and after the 45-day period the court may dismiss a bankruptcy case without a hearing. In some cases, the court will prohibit a debtor from filing another bankruptcy case for 180 days or more.

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Before Filing Bankruptcy

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Fees are required to file many documents with the court, including a bankruptcy petition package, a lawsuit (Complaint), certain motions, and other documents. Photocopies or certified copies of documents are available for a fee. Acceptable payment method of filing fees depends upon whether documents are filed electronically via CM/ECF or at the intake window of the clerk’s office.

A) Petition Package or Document Filed Electronically via CM/ECF -- If an electronically filed document requires a fee, the fee must be paid by credit card (AMEX, VISA, MC or Discover).

B) Petition Package or Document Filed at the Intake Window of the Clerk’s Office –

Fees Paid by an Individual Person - If an individual debtor files a bankruptcy petition package or other document at the courthouse, the bankruptcy court does not accept credit cards, but the fee may be paid with:
(1) U.S. POSTAL SERVICE MONEY ORDER; or
(2) CASHIER’S CHECK issued by an acceptable financial institution.
(3) View the Court's Pay.gov info page to learn about online payment options available for a limited selection of Court services.

Fees Paid by an Attorney - If an attorney files a bankruptcy petition package or other document, in most situations the attorney must file the documents electronically via CM/ECF. However, if a document is not required or allowed to be filed using CM/ECF, and is filed at the intake window of the clerk’s office, the fee may be paid by:
(1) CREDIT CARD (AMEX, VISA, MC or Discover);
(2) BUSINESS CHECK made payable to the “U.S. Bankruptcy Court” that includes a current pre-printed name, street address, telephone number, and California attorney bar number;
(3) U.S. POSTAL SERVICE MONEY ORDER; or
(4) CASHIER’S CHECK issued by an acceptable financial institution.

C) Requesting Photocopies or Certified Copies of Documents – The payment policy for obtaining copies is the same as the payment policy for filing documents. See above.

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Before Filing Bankruptcy

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The court uses a system called “CM/ECF” for attorneys (and some other organizations that file lots of documents) to electronically file, view and copy bankruptcy case documents. Only attorneys who have registered with a court and been provided with a CM/ECF password are entitled to file documents electronically.

To Register for CM/ECF.

To review CM/ECF filing requirements and procedures, see the Court Manual.

eSR is an online tool to help individuals complete a chapter 7 or chapter 13 bankruptcy petition when they have decided to file bankruptcy without an attorney.  Click here to learn more about this online tool.

The Electronic Drop Box is a tool available to self-represented litigants to enable them to upload court documents for filing that do not require a filing fee. Once you are determined to be eligible to use the Electronic Drop Box, the court will provide you with a link to upload your documents.  After the court reviews the uploaded document it will be deemed filed with the court.

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Before Filing Bankruptcy

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The new bankruptcy laws went into effect on October 17, 2005. These laws do not prevent a debtor from filing bankruptcy, though the new bankruptcy laws contain some differences.

The main procedural difference is in the information that a debtor must provide to the bankruptcy court in order to open a bankruptcy case and to obtain a discharge.

Other differences include:

1. how long an individual must wait to obtain a discharge if the debtor had a prior bankruptcy;
2. the income level required in order to obtain a discharge in a chapter 7 case;
3. how long the Automatic Stay lasts; or
4. the procedure for reaffirming a debt on an automobile or a credit card.

It is highly recommended that an individual or business owner consult with a bankruptcy attorney to learn how the changes in bankruptcy laws may impact the particular financial situation.

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Form 423 + Number of the Personal Financial Management Course Certificate - Within 60 days after the first 341(a) Meeting of Creditors, individuals must file a mandatory court form (Form 423). It is not necessary to file the Certificate of Completion. Instead, the debtor is required to insert the certificate number on Form 423, and a joint debtor must fill out and file a separate Form 423 with a separate certificate number. If an individual delays in doing this, the bankruptcy case will likely be closed (not dismissed) without a discharge of debts being granted. If the case is closed, an individual debtor will have to file a motion to reopen the bankruptcy case (and pay a substantial filing fee) and to extend the time to have Form 423 placed on the court docket and a discharge order entered. Important rules are Bankruptcy Code Sections 727(a)(11), 1141(d)(3), and 1328(g). 

Mandatory Court Form: Debtor’s Certification of Completion of Postpetition Instructional Course Concerning Personal Financial Management (423)
 

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