7. Why Would Someone Claim Bankruptcy?

a) A person usually will file for bankruptcy as a way of obtaining one or more of these benefits:

1) Certain debts may be discharged completely with dischargeable debts being sorted out from those debts that must still be paid.

2) The debtor may be able to get extra time for debt repayment.

3) The debtor may get a break from creditor calls during the time in which debt relief is arranged.

4) The debtor can avail him or herself of the assistance of a trustee in the pursuit of lawsuits and like claims that the debtor is in possession of. In this way, the money that is obtained may be utilized in payment of creditors.

5) The debtor will have the opportunity to eliminate some judgment liens in the case that those liens impair an exemption.

b) A business might also file for bankruptcy to obtain many of the same benefits, for they include the possibility of running the business while the debt relief is being obtained. Unless it is a sole proprietorship, a business does not qualify for debt discharges under chapter 7.

A bankruptcy filing has a downside, and the bad may outweigh the good. One instance might be if the debtor hoped to resolve a debt, such as a mortgage, and then realized that, without equity in the home, there would be no point to filing for bankruptcy. Anyone filing for bankruptcy, whether as a business owner or individual, should seriously consider consulting a bankruptcy attorney to find out how the bankruptcy will affect their financial affairs.

8. Does The New Law Still Allow Me To File For Bankruptcy?

October 17, 2005 ushered in a new set of bankruptcy laws. Debtors can still file for bankruptcy under these laws, although these new bankruptcy laws have changed in some ways.

The biggest procedural change is in what information the debtor must provide to the bankruptcy court in order to begin a bankruptcy case and to get a discharge.

Here are some of the other differences:

1) The length of time a person is required to wait for a discharge in the event the debtor had a prior bankruptcy.
2) The required income level to be able to obtain a discharge in a chapter 7 case.
3) The length of time the Automatic Stay remains in effect.
4) The processes necessary in order to reaffirm an automobile or a credit card debt.

It is strongly suggested that a person or company owner talk to a bankruptcy lawyer to educate themselves on the latest in bankruptcy laws and the effect they might have on the financial circumstances.

9. After Beginning a Bankruptcy Case, What Must a Debtor Do?

Once the bankruptcy case has begun, a debtor needs to closely follow everything involved with the bankruptcy until there is a discharge AND the bankruptcy case is officially closed. Bankruptcy can be compared with a deal between a debtor and Congress. It is possible for someone in debt to obtain debt relief if they pass specific financial tests and do not break any bankruptcy rules. It is very important to heed the bankruptcy rules, because if a debtor neglects to follow the guidelines set forth by the bankruptcy case, they may have their rights to the debt relief removed and will have to devote additional time and money to get back those bankruptcy rights. Some bankruptcy cases are denied.

A debtor can keep informed and involved with a bankruptcy case by READING ALL MAIL sent by the Court and other parties in the bankruptcy case:

a) The information sent by the Court is the most important, so paying very close attention allows a debtor to know what is going on with the bankruptcy case and helps the debtor protect the debtor’s rights.

Following are some examples:

1) The court might let a debtor know that some forms haven’t been filed. A deadline will be assigned for filing the forms necessary to prevent the case from being dismissed. In general, the balance of the information must be filed within 2 weeks after a bankruptcy case has been opened. If it isn’t filed, the case might be dismissed and an order may be issued barring the debtor from filing again within a specified time period. This is usually 180 days or more.

2) A creditor can file a lawsuit to have its debt ruled non-dischargeable by the court, so it is important for the debtor to answer the complaint within thirty (30) days after the court issues a summons.

You should get in touch with a bankruptcy lawyer for additional information on lawsuits in bankruptcy cases.

3) A creditor might file papers requesting the judge to let the creditor act against the one in debt. This motion from the creditor will contain a deadline for the debtor to file a written response; normally this deadline is fourteen (14) days prior to the hearing. A Bankruptcy lawyer can provide you with additional details pertaining to motions.

b) Notify the court whenever there is a change in mailing address – It is the debtor’s responsibility to immediately file a change of address form at the clerk’s office, with the trustee, and the creditors, whenever there has been an address change so that they know where to mail documents to the debtor. The debtor needs to send copies of the change of address form to the trustee, U.S. Trustee, as well all creditors.

c) Understand What Due Process Means to All Parties Involved – Due Process allows all parties to have a chance to prepare for a court hearing, file papers and motions, before the Court hears the case and makes a ruling. Time is needed before a court hearing to review the issues, to decide on which actions to take, and prepare the necessary arguments. Bankruptcy court is not like the courtroom dramas you see on TV. At your hearing, do not introduce any new information or witnesses that the judge, trustee, or creditors are not anticipating. Only in cases in which the two parties cannot reach agreement does the court become involved. The court will need to prepare for the court hearing AND so will the other party involved.

For this reason:

1) Debtors must be receive all evidence in ample time to respond with evidence of their own.

2) Creditors and trustees must also be given evidence in ample time to respond with their own evidence.

3) The court must also be given all evidence from all parties well in advance of the court hearing in order that it may properly review and consider all evidence and arguments.

d) Always Meet ALL the Deadlines to File Documents and Submit Evidence – A debtor will receive a notice of when any court hearings are scheduled or whenever the clerk’s office will be taking any actions. Notices contain important information regarding filing deadlines for documents and response times for responding to a creditor. For this reason, you must pay close attention to document filing deadlines. There are important deadlines for filing evidence in support of a legal argument, and for making court appearances. If you do not adhere to these, you may face serious financial consequences.

1) If there is a timeline for filing papers or other proof (and serving it on the other party), that timeline is the day the papers must be appear in court. Debtors should allow at least three business days for mailed documents to reach the court. The date on the postmark is immaterial. In general, one must file documents with the clerk and mail them to the other party 2 weeks before the hearing.

2) In general, Judges won’t allow any party to argue facts and the law at a hearing unless said arguments are written and filed in a timely manner and served on the opposing party.

3) The fact that a debtor follows deadlines lets the opposing party know that the debtor is actively participating in the process and is behaving in a responsible manner. An effective method for getting the opposition to be patient and work together is to communicate.

e) Communicate With Your Attorney Promptly – When the debtor’s attorney contacts you regarding a court date or some other matter, you should respond in a timely manner. It’s important to act in a timely manner to meet all deadlines. You can’t expect your attorney to take care of all of this without information from you. Just because a person in debt has a lawyer, doesn’t mandate that the court will change session dates or allow more time to turn in evidence and file papers. If the debtor misses court deadlines and/or is not present at court hearings, the bankruptcy case may be dismissed. Alternately, the court may find in favor of the creditor, regardless of whether or not the debtor has an attorney.

f) Be sure to attend the Mandatory 341(a) MEETING OF CREDITORS, which occurs thirty (30) to forty-five (45) after the filing of the bankruptcy case. This meeting is at the Office of the United States Trustee where the trustee and creditors will ask questions about the debtor’s present financial condition. Section 341(a) of the Bankruptcy Code makes this meeting, known as a 341(a) Meeting of Creditors, a requirement. The debtor will receive a notice in the mail detailing when and where the 341(a) Meeting will be held.

g) Go to all the court hearings. When a creditor or a trustee files a motion, a court hearing is scheduled. The debtor should respond to all court motions before any deadlines and attend any hearing the court sets, even if the debtor does not have an attorney. A bankruptcy lawyer can provide you with information regarding court hearings on motions.

1) The judge normally explains any rulings to the debtor at the court hearing; the judge will also let the debtor explain their position if the debtor had filed a written motion or response.

2) If the person who is in debt has retained a lawyer, then prior and subsequent to the court hearing are ideal chances to discuss the case with that lawyer. Frequently, debtors are unable to defend the motion. The best way to understand a judge’s verdict, though, is to be present at the court hearing.

3) Since a debtor often does not have a lawyer, the debtor can benefit from asking the judge to explain the ruling. It’s important to understand this because many times the judge’s ruling is to simply DENY or GRANT a motion. No explanation or reasoning are provided. Writing a letter to the judge, calling the clerk’s office, or attempting to get an explanation from the judge’s staff are all fruitless pursuits.

h) Tell the Truth – Do not keep anything from the court or trustee or lie about any aspect of your finances. The bankruptcy case trustee, United States Trustee, or other persons may request not to issue debt relief if a debtor gives incorrect information. This might lead to losing real estate and throwing out a bankruptcy case minus a discharge and loss of the bankruptcy case monetary fee. If the debtor has given or transferred property to a relative or friend prior to or following the filing of the bankruptcy case, the court trustee may deem it necessary to look into the validity of this transaction. Don’t keep this knowledge to yourself, as the bankruptcy court process is made to benefit all creditors in a certain priority and outline for fairness. Often real estate has to be put back to the bankruptcy estate so it can be given out in line with these mandates, and withholding data can be thought of as bankruptcy fraud and might be a criminal offense.

10. Are All Debts Discharged for Every Debtor?

A discharge is a mandate from the court that relieves a debtor of some specific debts. With a discharge order, a creditor is barred from trying to get paid for a discharged debt. However, not every debt qualifies for discharge. Adversary complaints can be filed in writing by the parties so that the court can decide whether or not a debt can be discharged.

a) Creditor, Trustee, or United States Requests the Court To Determine if There is a Discharge

1) There are a number of unsecured debts that aren’t dischargeable because Congress deems them to be a type of debt that shouldn’t be discharged. Public policy is the reason for this. A debtor is required to prove that a debt should not be discharged, Section 523 of the Bankruptcy code lists these debts.

Here are some examples:

A) Obligations for spousal and child support.

B) Some tax debts.

C) The majority of educational loans.

D) Debts arising as a result of injuries or death caused by driving while intoxicated.

E) Debts caused by fraudulent conduct.

2) A discharge of all unsecured debts might also be denied if the debtor has not been honest, forthright, or cooperative in the bankruptcy case. Section 727 of the Bankruptcy Code explains these situations, which normally involve the U.S. Trustee or creditors who go to court in an effort to ascertain if a debtor has the grounds to be granted a bankruptcy or not be given a discharge of the petitioned debts.

3) Anything you own that is secured by real or personal property cannot be discharged. For instance, if a debtor is not making timely payments after the discharge is granted, the creditor can still repossess the property. Foreclosures of homes and cars car result, even if the creditor does not solicit and receive payment for the unpaid bill.

b) The debtor requests that the court determine whether or not a debt can be discharged. There are creditors who have gotten court judgments, and subsequently filed a “lien” which could be utilized in the sale of the debtor’s property. There are circumstances under which the court will approve a petition to remove such a lien. In addition, debtors are allowed to file adversary proceedings whereby they can request that the court discharge other debts.

11. If I Have Filed For Bankruptcy in the Past, When Do I Qualify for Another Discharge?

In the event that this isn’t a debtor’s first bankruptcy case, and assuming that the debtor received a discharge of some debts in a prior case during the eight years immediately preceding the current case, the debtor might not be able to get a discharge in the current bankruptcy case. This is dependent upon a number of things; the chapter number of the previous bankruptcy case and the chapter number of the current bankruptcy case are matters of importance. Additionally, the amount of time that has passed since the filing date of the prior bankruptcy case and the filing date of the current bankruptcy case. It is vital to retain a bankruptcy lawyer and to look at Section 727(a) and Section 1328(f) of the Bankruptcy Code.

General rules:

a) Previous bankruptcy will result in Chapter 7 or 11; additionally, Current bankruptcy will result in Chapter 7:

8 years after the date that the previous bankruptcy case was filed. Bankruptcy Code Section 727(a)(8)

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b) Previous bankruptcy will result in Chapter 7. Current bankruptcy which will result in Chapter 13:

 

4 years after date that previous bankruptcy case was filed. Bankruptcy Code Section 1328(f)(1)

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c) Previous bankruptcy will result in Chapter 13. Current bankruptcy which will result in Chapter 7:

 

* No mandatory waiting period if a hundred percent of claims were paid in the previous Chapter 13 bankruptcy: Bankruptcy Code Section 727(a)(9)(A)

* No mandatory waiting period if seventy percent of claims were paid in the previous Chapter 13 bankruptcy additionally, the Chapter 13 Plan was proposed in good faith and additionally, it was the debtor’s best effort. Bankruptcy Code Section 727(a)(9)(B)

* 6 years after date that previous bankruptcy case was filed, if less than seventy percent (additionally, up to a hundred percent) of claims were not paid in the previous Chapter 13 bankruptcy case. Bankruptcy Code Section 727(a)(9)

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d) Previous bankruptcy will result in Chapter 13. Current bankruptcy will result in Chapter 13: 2 years after date that the previous bankruptcy case was filed. Bankruptcy Code Section 1328(f)(2)

 

12. Will I Be Allowed to Retain My Property by Signing a Reaffirmation Agreement?

A debtor can opt to retain some personal property (like a car) by using a Reaffirmation Agreement and then having that Reaffirmation Agreement approved by the court. A Reaffirmation Agreement is utilized to transform a debt that would be discharged into a debt that will not be discharged. This should hardly ever happen and should only occur when the creditor makes a concession, like lowering the principle or interest rate. After the bankruptcy case has been filed, the Reaffirmation Agreement can be entered into. Requirements for doing this are specific, detailed, and non-negotiable.

A Court Hearing Is Not Required – If a debtor is represented by an attorney during negotiations about the Reaffirmation Agreement, and the attorney signs all the prerequisite parts of the Reaffirmation Agreement, then a bankruptcy judge is not needed to approve the Reaffirmation Agreement.

A Court Hearing Is Required – If a debtor does not have an attorney during the Reaffirmation Agreement, then there must be a court hearing for the bankruptcy judge to review the Reaffirmation Agreement. The debtor is required to attend the court hearing. This allows the bankruptcy judge to ask the debtor questions. It also gives the judge a chance to examine the Reaffirmation Agreement, making sure that this agreement is in the debtor’s best interest. At this time, the judge will also approve the Reaffirmation Agreement. Even if the debtor has signed the Reaffirmation Agreement, the judge has the option to disapprove the Reaffirmation Agreement.

13. What Will a Bankruptcy Filing Cost Me?

Filing Fees to initiate Bankruptcy Proceedings are due when you file your Bankruptcy Petition Package:

Chapter 7 Petition Package is $299.00.

The fee for a Chapter 13 Petition Package is $274.00.

Filing Chapter 11 Petition is $1,039.00.

You will also pay legal fees.

14. What Happens if I Don’t Have the Money for the Bankruptcy Filing Fee?

Occasionally, the court may grant permission for a filing fee to be paid in installments or even to be entirely waived. It should be understood that if an installment payment plan is approved, it is necessary to comply with the payment schedule. If this does not occur, the bankruptcy case may be dismissed without the debtor obtaining a discharge of debts.

Chapter 13 Petition Package – When filing Chapter 13 bankruptcy, the filing fee is rarely waived and it usually must be paid in one lump sum. Since the reason for a Chapter 13 bankruptcy is to keep current with debt payments, a court might doubt a debtor’s ability if the debtor requests a waiver for the filing fees.

Chapter 11 Petition Package – Installment payments or fee waivers are not generally permitted in chapter 11 bankruptcy cases.

Chapter 7 Petition Package – Should the debtor decide to file a Chapter 7 bankruptcy case, and depending upon the Federal H.H.S. Poverty Guidelines (which vary by family size) the debtor has an income of less 150% poverty level, the court has the option of either completely waiving the filing fee or allowing installment payments. When the bankruptcy petition is filed, the debtor is required to submit a written request to the court via the intake window at the clerk’s office. After the intake staff contacts the judge assigned to the case, said judge will make a decision in a timely manner. A debtor can expect to wait at the courthouse until the judge is available, or be ready to come back the when the court is open again. If there is no waiver of the filing fee, the debtor will be permitted to remit these fees in installments.

15. Please Explain the Automatic Stay. Does It Offer Protection from Anyone I Owe Money To?

What you need to know about an Automatic Stay – As soon as a bankruptcy case has been filed, an automatic stay (or injunction) is usually imposed against specific creditors who desire to begin or continue actions against the debtor’s property or the debtor him or herself. Bankruptcy Code Section 362 talks about the Automatic Stay.

Debtor’s Protection – Be sure to read all relevant statutes included in the Bankruptcy Code. Additionally, it is wise to consult with a competent bankruptcy attorney regarding Automatic Stay. The reason for this is that in some situations there is no Automatic Stay. In others, Automatic Stay only applies in situations in which the debtor is able to obtain a court order imposing the Automatic Stay. There are lots of various time frames and timelines, and creditors (such as child help services) might still act to collect from a debtor.

A bankruptcy lawyer can explain the details regarding Motions to Continue or Impose the Stay.

Creditors Who Obtain Relief From the Automatic Stay – In the event that a creditor properly files and serves a “Motion for Relief from the Automatic Stay” and that motion is granted by the judge, the Automatic Stay may be removed or it may be modified in a way that allows the creditor to resume collection efforts against the debtor.

A bankruptcy attorney should be consulted for information pertaining to Motions for Relief from the Automatic Stay.

16. Will a Bankruptcy Petition Stop Me From Being Evicted?

An Automatic Stay may or may not stop an eviction for a tenant who has filed for bankruptcy because the actual facts in the cases vary. A bankruptcy lawyer can explain to you how filing for bankruptcy affects the eviction process.

17. The Bankruptcy Code Explained and What other Rules Cover Bankruptcy Cases.

Bankruptcy Code – This contains the legal statutes that cover the rights and duties of individual debtors, business debtors, attorneys and trustees in bankruptcy cases. During bankruptcy proceedings, creditors and debtors often reference bankruptcy code statutes in an effort to establish rights and responsibilities.

“Title 11 of the United States Code”, is also called “11 U.S.C.” or the Bankruptcy Code; and copies can be found in law libraries or bought from the Government Printing Office or at some law bookstores.

Bankruptcy Procedure – The procedural rules in regard to bankruptcy cases can be found in the Federal Rules of Bankruptcy Procedure (“FRBP”). They are also located in the Local Bankruptcy Rules for the Central District of California (LBR). Each judge may have instructions, forms, and procedures of their own.

Related Laws – Since there are so many situations that a debtor might be in when a bankruptcy case is filed, other laws of the Federal, state or municipal governments might apply in the bankruptcy case. For instance, domestic law, contracts, property transactions, unsecured loans, taxes, medical circumstances, injuries to persons, etc. A bankruptcy attorney should be consulted to properly determine which rules apply for a particular situation.

18. Can You Explain the Different Bankruptcy Chapter Numbers?

Here are the common chapters of the Bankruptcy Code:

CHAPTER 7: “liquidation” bankruptcy” – This can be used by individuals for the purpose of obtaining a discharge of many debts with no future payments. It might also be utilized by a company that wants to get rid of its company assets using the protection of the bankruptcy court.

A trustee will be assigned to take some of the debtor’s assets and sell them or parcel them out to the creditors as s/he sees fit. The trustee also has the ability to recover some assets that had already been paid out, and put those assets into the bankruptcy estate.

Motions regarding how much money is owed to them and the supporting documents are legal rights held by creditors, often called claims. The creditors may also be able to file a motion (written request) for a court order to allow the creditor to take back possession of a home, car or other property.

CHAPTER 11 – A corporation, partnership or individual is allowed to reorganize their property and debts without being required to liquidate all the assets; Chapter 11 is often referred to as the ‘reorganization chapter’ for this reason. Basically, the aim is for the debtor to keep control of his or her property and to present creditors with a “Plan of Reorganization” for repayment. If the creditors approve the Plan of Reorganization, and the court okays the plan, a person in debt is able to reorganize individual, monetary, or corporate matters.

A trustee might be assigned if a motion is filed with the court and the court agrees that a trustee is needed to administer the business of the debtor.

It is legal for creditors to submit “claims” that show the sum of cash owed and the papers backing up the claim. It is possible that they may object to the plan proposal offered by the debtor. In this case, the creditor may file a motion (written request) for a court order that lets them repossess a car, home, or other property.

CHAPTER 13 – This portion of the bankruptcy law is for an individual debtor with an income source and debts below proscribed limits, so that the debts can be reorganized. A “Chapter 13 Plan” is presented by a Chapter 13 debtor outlining the schedule of repayment. This essentially permits the debtor to keep the property, keep up with current debt payments, and designates how much and when the past debt is to be paid.

In addition, a trustee is appointed by the court to monitor the case, reporting back to the court on how the debtor is, or is not, meeting the specified obligations. So, should a debtor not meet the agreed upon obligations, then the creditor or trustee can go to the court and ask for the bankruptcy case to be dismissed. If a debtor begins earning a higher salary, the trustee or creditor can ask the court to revisit the dollar amounts the creditors will be paid.

It shall be the right of anyone extending credit to submit a claim itemizing both the total money to be repaid and documentation in support of the claim. They may also file an objection to the debtor’s proposed plan, and sometimes can file a motion to get permission to repossess a home, car, or other property.

19. Are Credit Counseling and Personal Financial Management the Same Class?

In order to get a discharge, a debtor is required to take TWO SEPARATE COURSES. You will take one class called “Credit Counseling” and another called “Personal Financial Management.” The classes have two differences:

1) The point at which they must be taken, and

2) The class of debtors that are required to take them. If a couple is filing bankruptcy together, they must both complete each course.

CREDIT COUNSELING, Before Bankruptcy Is Filed – An individual debtor (not a business) is generally required by the Bankruptcy code to finish an approved class in Credit Counseling prior to filing for bankruptcy. You can take it in a classroom setting, online, or by phone, and you will receive a certificate of completion when you are done. A bankruptcy lawyer can tell you how to notify the court that you have finished a class.

PERSONAL FINANCIAL MANAGEMENT, Shortly Following Filing for Bankruptcy – The debtor must complete an approved course in Personal Financial Management. This should occur within 45 days after the 341(a) Meeting of Creditors. The discharge of debts is dependent upon this condition. You can take this class in a classroom setting, online, or by phone, and when it’s finished, you will get a Certificate of Completion. A bankruptcy lawyer can tell you how to inform the court that you have finished the course.

20. Will Every Person Attending These Courses Receive Their Own Certificates of Completion?

Indeed, the agency providing credit counseling also provides a certificate of course completion. Furthermore, the agency providing the Personal Financial Management service also gives a certificate of course completion. If a bankruptcy petition is being filed by a couple, each individual must complete the two courses and provide the Court with Certificates of Completion.

21. At What Point Do I Submit My Credit Counseling Certificate and Exhibit D?

Credit Counseling Certificate + Exhibit D – At the same time that a bankruptcy plea is categorized, a person has to complete a paper called “Exhibit D” and file Exhibit D and the Certificate of Completion with the court. Quite a few judges will waive a bankruptcy case if the person does not completely follow his rule. It would be almost unheard of to have a bankruptcy situation proceed unless the filer has taken a class in credit advisement. Consult an experienced bankruptcy lawyer who can help you keep from having a bankruptcy case dismissal, as well as instruct you regarding credit counseling. Federal Rules of Bankruptcy Procedure Rule 1007, Bankruptcy Code Sections 109 (h) and 521 (b) are three very important rules that need to be followed.

22. Am I Responsible for Filing a Personal Financial Management Certificate?

Form B23 + Number of the Personal Financial Management Course Certificate – Within 45 days following the first 341(a) Meeting of Creditors, people need to file a mandatory court paper (Form 23/B23). You are not required to file the Certificate of Completion. Though the debtor is required to put on Form B23 the certificate number; likewise, a joint debtor should do the same with a separate certificate number on a separate Form B23. If a person puts off doing this, the bankruptcy case will probably be closed (not thrown out entirely) minus a discharge of debts being given. In the event that the bankruptcy case is closed, the debtor must file a motion to reopen it. At this time, s/he will be required to pay a substantial filing fee. Then the time may be extended to have Form B23 added to the court docket and a discharge order entered. Noteworthy rules are Bankruptcy Code Sections 727(a)(11), 1141(d)(3), and 1328(g).

23. Do the Debtors and Creditors Have to Have Legal Representation?

Business Debtor – Corporations, partnerships, or unincorporated associations are not allowed to file a bankruptcy petition or any other court document. They may not appear in court unless accompanied by an attorney. Please refer to Local Bankruptcy Rule 2090-1(g)(1).

The Individual Debtor or Creditor – An attorney is not required for an individual debtor or creditor to file a bankruptcy petition or to file other documents, or to represent them at court hearings. No matter what chapter you are filing bankruptcy under, this is the case. An experienced bankruptcy attorney will be able to protect all the rights of the debtor (who may not even know some of them that exist).

24. The Names of the Different Forms used in Bankruptcy

Petition Package – This is a collection of all necessary forms for beginning a certain chapter bankruptcy case.

Petition – This is a document that officially requests that a bankruptcy case be opened. The Petition will contain basic identifying information about the debtor (i.e. contact information, attorney, chapter number, and signature).

Additional Documentation – Although a Petition gets the bankruptcy process underway, it is only the start.

About 30 additional documents are required. These documents allow the court and trustee to fully understand how to properly treat a debtor in regard to that debtor’s financial situation. The titles of these documents vary. Some are: “Schedules (A to J),” “Exhibits (C and D)”. Additionally, there are combinations of other forms with titles such as: “Venue Disclosure” (chapter 11 only), “Statements,” “Plan,” (chapter 13 only) “Debtor’s Certification,” “Declarations,” “Summary,” “Disclosure,” “Verification,” and “Notice”. Understanding and organizing the bankruptcy process is time consuming, so give yourself plenty of time to go through all the information.

25. Where can an updated Bankruptcy Petition and Other useful Forms be found?

Court Website – These documents are often updated so it is best to make sure you are using the latest version. In addition, make certain to file all the documents associated with the bankruptcy chapter you are filing (7, 11, or 13). Please make certain all requested signatures have been provided.

Courthouse Filing Window -– You may also buy a package containing the forms at the Clerk’s Office.

26. If the Wrong Form, Statement, Schedule or Plan is Filed, then What Happens?

The debtor is responsible for making sure the right version of document is filed with the bankruptcy court. A court approved Amendment Form and the correct version should be filed with the court if a debtor finds that the incorrect version was filed. The Amendment Form is to be listed separately on the electronic bankruptcy case docket. This notifies the creditors and trustee that a new version of a form has been filed. If a debtor inadvertently received a wrong or outdated form, the court may elect to notify the debtor and will specify a new date by which to submit the proper form.

27. Will My Bankruptcy Petition be Dismissed if I Do Not File All Documents?

Avoiding the Dismissal of Your Bankruptcy Case – The debtor must provide the court with all of the information that is required by law if s/he wishes the case to proceed in an orderly fashion (or at all). Without provision of this information, it is possible that a bankruptcy case will be dismissed without a discharge of debts being obtained by the debtor.

When a bankruptcy case commences, in the event that all of the required information isn’t filed with the court, the clerk’s office typically mails a notice to the debtor. This notice identifies the documents and/or signatures that may be missing. Unless this information is submitted within 2 weeks of the filing date, the bankruptcy case will be dismissed. An exception to this would be that the judge has given permission for a delay and has extended the deadline. Some information and documents are due no later than forty-five (45) days after the bankruptcy case filing; and after those forty-five (45) days the court can dismiss a case without a hearing. The court has the ability to prohibit any debtor from filing another bankruptcy case; often for periods of 180 or more days.

28. Is My Identity Protected in Bankruptcy?

a) General Privacy Policy – The Judicial Conference privacy policy talks about the protection of each person’s privacy in the realm of access to case files that are electronic. This policy has been in effect since December 1, 2003 and requires that all forms of personal identification/identifiers, like Social Security numbers, financial account numbers, dates of birth and the names of minor children be redacted. Those who file documents with the court, and this includes the debtor, are responsible for redacting the personal identifiers from the documents. This is neither the responsibility of the clerk’s office of the bankruptcy judge.

All court filed documents, submitted either electronically or in paper, have the privacy policy applied. The privacy policy does not affect information already submitted.

b) The Exclusion of a Debtor’s Personally Identifying Information From Petition Packages – The Judicial Conference Privacy Policy (December, 1, 2003) states that there are some items of sensitive and/or personal information that should not be included in documents that are filed with the court.

“Personal identifiers” are as follows:

1) Social Security Numbers: This is to include all 9 digits of the SSN. Debtors are required to submit a Statement of Social Security Numbers/ Form B21/. This form must contain the full nine-digit SSN at the time of filing. The staff in the bankruptcy court clerk’s office will utilize this information for the purpose of opening a bankruptcy case docket; however, the actual Form B21 won’t become part of the docket that can be seen by the public. Last 4 digits only -– On any other document that asks for a social security number, use ONLY the last four digits. If a social security number has to be changed, the debtor must file three forms.

2) Financial Account Numbers: Any time financial account numbers are needed, you are only required to provide the last four digits.

3) Birth Dates: If a document asks for a person’s birth date, only the year is required.
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