The filing of a bankruptcy case is governed by the rules of the bankruptcy court where it will be filed. Always read the rules before filing your case or even completing the paperwork. Generally, where you apply will be the county in which you reside, as long as you have lived there for most of the last six months.
You do not need to be represented by an attorney to file bankruptcy. However, if you do not have much business experience or are not computer literate, you may want to seek the help of a lawyer. If you use a paralegal service to present your case, be aware that there are established guidelines on how much a bankruptcy petition preparer can charge, and they should inform you.
The bankruptcy petition consists of the petition itself, the exhibits, some local forms, and the Means Test. The means test determines if you qualify for Chapter 7 based on your current monthly income. Current monthly income received by the debtor is understood to be the average monthly income received during the six calendar months prior to the opening of the bankruptcy, but without including social security income.
Before anyone can file for bankruptcy, they must obtain credit counseling from an approved provider. Check your local court website for a list of approved providers. The class will take 1-2 hours and there is a fee (usually less than $50). Businesses can file for Chapter 7 bankruptcy, but are not required to take the credit counseling class.
You can access your local court’s website to complete and print all the forms required for a Chapter 7 filing. For the Central District of California, the following forms are required from an individual debtor:
1. * Declaration of Social Security Number (Official Form B21)
2. * Voluntary Petition
3. Annex C – if applicable
4. Annex D – Declaration of Compliance of the Individual Debtor with the Requirement of Credit Counseling
5. Declaration of Related Cases
6. Notice of Available Chapters[requiredforindividualswhosedebtsareprimarilyconsumerdebts[requiredforindividualswhosedebtsareprimarilyconsumerdebts[requeridoparapersonascuyasdeudassonprincipalmentedeudasdeconsumo[requiredforindividualswhosedebtsareprimarilyconsumerdebts
7. Summary of Schedules and Statistical Summary of Certain Liabilities and Related Data
8. Schedules A to J
9. Declaration Regarding the Debtor’s Lists
10. Statement of Financial Affairs
11. Chapter 7 Declaration of Intent of the Individual Debtor
12. Debtor-Attorney Relief Disclosure (for petitions by persons who are represented by an attorney or where an attorney has prepared the paperwork)
13. Statement on the limited scope of the appearance in accordance with LBR 2090-1, (if applicable)
14. Copies of all notices of payment (pay stubs) or other evidence of payment received by the debtor from any employer within the 60 days prior to the filing of the petition and the optional Obligor Certification of Earnings Compliant
15. Statement of Current Monthly Income and Means Test Calculation
16. Creditor Mailing List Verification
17. *Master mailing list
18. *Certificate of Credit Counseling
An “emergency filing” may also be filed. This happens when you can’t complete all the paperwork before filing (usually to stop a sale of real estate or wage garnishment by a trustee). To file urgently, items marked with an asterisk
Above are the minimum documents needed to submit. The balance of the documents will be due within two weeks after submission. If you are unable to complete the credit counseling prior to applying, you may do so without it, but you must provide a statement of why you were unable to complete the counseling prior to applying.
After completing all the forms, sign and date them, then make a copy. Take them with you to the court clerk along with cash for the filing fee ($299). The court will also accept money orders and checks drawn on an attorney’s account. The clerk will “file” the papers and give you a receipt that shows your case number, hearing date, and judge/trustee assignment. The hearing date will usually be in about 4 to 6 weeks.
Within one week after filing, the clerk will mail a Notice of Commencement to you and all of your creditors. This is the notice the creditor will receive requiring you to stop making harassing phone calls and collection attempts. It also sets the date, time, and place of the hearing, and other important deadlines for creditors.
You must mail your last tax return to the trustee assigned to your case within one week of the hearing date. When you go to your hearing, you should bring your social security card and driver’s license, and it is best to bring a copy of your petition papers and tax returns, although it is not required. The hearing will be short, often taking five minutes or less, and the trustee will ask you a few questions about your case. The trustee will then dismiss you or may continue the hearing to another date if additional documents are requested or if your paperwork needs to be amended.
You will need to take a class on personal financial management before your case can be dismissed. The Debtor’s Certification of Compliance form and certificate must be filed within 45 days of your hearing. The discharge will usually come in the mail about 3 to 4 months after your hearing. At that point, your debts have been discharged and you can start your life anew.