Chapter 13 Petition Package - United States Bankruptcy Court

United States Bankruptcy Court

Central District of California

Chapter 13 Petition Package

Requirements and Forms for Individuals Filing a Chapter 13 Bankruptcy Case in the Central District of California

Revised December 2020

Check the Court's website cacb. to verify that you are using the latest version of the Petition Package

Table of Contents

Page

Introduction ................................................................................................. 1

Requirements for Filing a Chapter 13 Bankruptcy Case ............................. 2

Notice Required by 11 U.S.C. ? 342(b) for Individuals Filing for Bankruptcy (Form 2010) -- Voluntary Petition (Official Form 101) requires debtors that are not represented by an attorney to declare that they have read this form. Do not file this form. .................................................................................... 5

Requirements for Master Mailing List of Creditors....................................... 9

Example of Format for Master Mailing List of Creditors............................. 10

Definition of Terms.................................................................................... 11

Introduction

This Chapter 13 Petition Package includes the basic information and forms required to file a voluntary chapter 13 bankruptcy case in the Central District of California, as specified in the Court Manual, Section 2 Filing Requirements and Procedures. Individual debtors should also refer to the Instructions for Bankruptcy Forms for Individuals, available on the Court's website under Petition Forms. Since bankruptcy is a complex process, debtors considering filing a chapter 13 bankruptcy case are encouraged to consult with a bankruptcy attorney. Only individuals may file chapter 13 bankruptcy cases [11 U.S.C. ? 109].

This Petition Package, and all forms in it, are available for free on the Court's web site . The online versions of the forms in this Petition Package are pdf fillable and can be completed and saved to any computer that has Adobe Acrobat Reader (Adobe Acrobat Reader is available for free at ).

Please note that court staff is prohibited from giving legal advice.

Before filing a bankruptcy case, debtors are also encouraged to visit the Court's web site cacb. to review the "Don't Have an Attorney" web page. This web page has easy to understand information and videos about the bankruptcy process and other helpful information.

Attorneys filing through CM/ECF should refer to the Court Manual Section 3 CM/ECF Procedures.

Page 1

Chapter 13 Petition Package

Requirements for Filing a Chapter 13 Bankruptcy Case

To file a chapter 13 bankruptcy case in the Central District of California, debtors:

1) MUST complete an approved credit counseling course within 180 days BEFORE

filing the bankruptcy case. Upon completion of the credit counseling course, a certificate of completion will be issued. A copy of the certificate of completion must be filed with the court up to 14 days after the bankruptcy petition filing (with limited exceptions).

For a list of approved credit counseling agencies, visit the U.S. Department of Justice's website at ust/eo/bapcpa/ccde/cc_approved.htm.

2) MUST pay the chapter 13 filing fee. Consult the Court Manual for the filing fee

amount and payment methods.

3) MUST file the following documents at the bankruptcy court in the following order.

At a minimum, documents in this box (A, B, and C) MUST BE FILED, when applicable, or the bankruptcy filing will not be accepted.

A. Statement About Your Social Security Numbers (Official Form 121) If filing electronically, see Court Manual section 3.6(b). If filing electronically, this document must be filed separately from the other documents in this package.

B. Voluntary Petition for Individuals Filings for Bankruptcy (Official Form 101 ) ? this completed form must be signed by the debtor(s).

C. Master Mailing List of Creditors - this is not a form, it is a list of creditors' names and addresses. Please see the Requirements for Master Mailing List of Creditors on page 9.

D. Initial Statement About an Eviction Judgment Against You (Official Form 101A) ? this form must be filed with your Voluntary Petition IF you marked "Yes" to both questions in #11 on the Voluntary Petition for Individuals Filing for Bankruptcy (Official Form 101). The Court requires that filers of this statement also provide a copy of the eviction judgment and a check made payable to the landlord.

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Chapter 13 Petition Package

The Following Documents Must be Filed with the Voluntary Petition or within 14 Days After Filing the Voluntary Petition

The following documents, if applicable, MUST also be filed at the bankruptcy court with the Voluntary Petition, or within 14 days after the filing of the Voluntary Petition. If the following documents are not filed within 14 days after the filing of the Voluntary Petition, the bankruptcy case may be dismissed. If that happens, you will lose whatever filing fee you paid, and your creditors will be able to resume collection activities against you.

E.

Debt Repayment Plan ? if the credit counseling agency provided the debtor with

a debt repayment plan, the debt repayment plan must be filed.

F.

Statement of Related Cases (LBR form F 1015-2.1.STMT.RELATED.CASES)

G.

Summary of Your Assets and Liabilities and Certain Statistical Information

(Official Form 106Sum)

H.

Schedules A/B through J-2

Schedule A/B: Property (Official Form 106A/B)

Schedule C: The Property You Claim as Exempt (Official Form 106C)

Schedule D: Creditors Who Have Claims Secured by Property (Official Form 106D)

Schedule E/F: Creditors Who Have Unsecured Claims (Official Form 106E/F)

Schedule G: Executory Contracts and Unexpired Leases (Official Form 106G)

Schedule H: Your Codebtors (Official Form 106H)

Schedule I: Your Income (Official Form 106I)

Schedule J: Your Expenses (Official Form 106J)

Schedule J-2: Expenses for Separate Household of Debtor 2 (Official Form 106J-2) You must file Official Form 106J-2 if you answered "yes" to both questions on Official Form 106J, Part 1.

I.

Declaration About an Individual Debtor's Schedules (Official Form 106Dec)

J.

Statement of Financial Affairs for Individuals Filing for Bankruptcy

(Official Form 107)

K.

Disclosure of Compensation of Bankruptcy Petition Preparer (Official Form

B2800 ? this form must be filed only if the debtor paid a non-attorney

bankruptcy petition preparer to prepare any of the documents in listed in this

Petition Package [11 U.S.C. ? 110].

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Chapter 13 Petition Package

L.

Bankruptcy Petition Preparer's Notice, Declaration and Signature (Official Form

119 ) - this form must be filed only if the debtor paid a non-attorney bankruptcy

petition preparer prepared any of the bankruptcy filing documents. [11 U.S.C.

? 110].

M.

Disclosure of Compensation of Attorney for Debtor (Official Form 2030 ) ? this

form is required only when an attorney represents the debtor and/or prepared

the bankruptcy filing documents.

N.

Declaration by Debtor(s) as to Whether Debtor(s) Income was Received From

an Employer withint 60 Days of the Petition Date [11 U.S.C., ? 521(a)(1)(B)]

(LBR form F 1002-1.EMP.INCOME.DEC) If filing electronically, this document

must be filed separately from the other documents in this package.

O.

Chapter 13 Statement of Your Current Monthly Income and Calculation of

Commitment Period (Official Form 122C-1)

P.

Chapter 13 Statement of Your Disposable Income (Official Form 122C-2)

Q.

Verification of Master Mailing List of Creditors [LBR 1007-1(a)]

(LBR form F 1007-1.MAILING.LIST.VERIFICATION)

R.

Certificate of Credit Counseling - a certificate of credit counseling is issued by

the credit counseling agency after the debtor has completed a credit counseling

course. If filing electronically, this document must be filed separately from the

other documents in this package.

S.

Chapter 13 Plan (LBR form F 3015-1.01.CHAPTER13.PLAN) If filing

electronically, this document must be filed separately from the other documents

in this package.

The Following Documents Must be Filed with the Voluntary Petition or within 30 Days After Filing the Voluntary Petition

T.

Statement About Payment of an Eviction Judgment Against You (Official Form

101B) ? if you filed Official Form 101A (see E), this form must be filed within 30

days after the filing of the Voluntary Petition if the debtor wishes to stay in their

residence for more than 30 days after filing the Voluntary Petition.

Optional Form with No Deadline for Filing

U.

Debtor's Request to Activate Electronic Noticing (DeBN)

(local form F 9036-1.1 DeBN ACTIVATE) ? this is an optional form for individual

debtors to request orders and court-generated notices by email (at no cost)

through the DeBN program, instead of by U.S. mail. If filing electronically, this

document must be filed separately from the other documents in this package.

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Chapter 13 Petition Package

Notice Required by 11 U.S.C. ? 342(b) for Individuals Filing for Bankruptcy (Form 2010)

This notice is for you if:

You are an individual filing for bankruptcy, and

Your debts are primarily consumer debts.

Consumer debts are defined in 11 U.S.C. ? 101(8) as "incurred by an individual primarily for a personal, family, or household purpose."

The types of bankruptcy that are available to individuals

Individuals who meet the qualifications may file under one of four different chapters of the Bankruptcy Code:

Chapter 7 -- Liquidation

Chapter 11-- Reorganization

Chapter 12-- Voluntary repayment plan for family farmers or fishermen

Chapter 13-- Voluntary repayment plan for individuals with regular income

You should have an attorney review your decision to file for bankruptcy and the choice of chapter.

Chapter 7: Liquidation

$245 filing fee

$78 administrative fee

+

$15 trustee surcharge

$338 total fee

Chapter 7 is for individuals who have financial difficulty preventing them from paying their debts and who are willing to allow their nonexempt property to be used to pay their creditors. The primary purpose of filing under chapter 7 is to have your debts discharged. The bankruptcy discharge relieves you after bankruptcy from having to pay many of your pre-bankruptcy debts. Exceptions exist for particular debts, and liens on property may still be enforced after discharge. For example, a creditor may have the right to foreclose a home mortgage or repossess an automobile.

However, if the court finds that you have committed certain kinds of improper conduct described in the Bankruptcy Code, the court may deny your discharge.

You should know that even if you file chapter 7 and you receive a discharge, some debts are not discharged under the law. Therefore, you may still be responsible to pay:

most taxes;

most student loans;

domestic support and property settlement obligations;

Notice Required by 11 U.S.C. U.S.C. ? 342(b) for Individuals Filing for Bankruptcy (Form 2010)

page 5

 most fines, penalties, forfeitures, and criminal restitution obligations; and

certain debts that are not listed in your bankruptcy papers.

You may also be required to pay debts arising from:

fraud or theft;

fraud or defalcation while acting in breach of fiduciary capacity;

intentional injuries that you inflicted; and

death or personal injury caused by operating a motor vehicle, vessel, or aircraft while intoxicated from alcohol or drugs.

If your debts are primarily consumer debts, the court can dismiss your chapter 7 case if it finds that you have enough income to repay creditors a certain amount. You must file Chapter 7 Statement of Your Current Monthly Income (Official Form 122A?1) if you are an individual filing for bankruptcy under chapter 7. This form will determine your current monthly income and compare whether your income is more than the median income that applies in your state.

If your income is not above the median for your state, you will not have to complete the other chapter 7 form, the Chapter 7 Means Test Calculation (Official Form 122A?2).

If your income is above the median for your state, you must file a second form --the Chapter 7 Means Test Calculation (Official Form 122A?2). The calculations on the form-- sometimes called the Means Test--deduct from your income living expenses and payments on certain debts to determine any amount available to pay unsecured creditors. If

your income is more than the median income for your state of residence and family size, depending on the results of the Means Test, the U.S. trustee, bankruptcy administrator, or creditors can file a motion to dismiss your case under ? 707(b) of the Bankruptcy Code. If a motion is filed, the court will decide if your case should be dismissed. To avoid dismissal, you may choose to proceed under another chapter of the Bankruptcy Code.

If you are an individual filing for chapter 7 bankruptcy, the trustee may sell your property to pay your debts, subject to your right to exempt the property or a portion of the proceeds from the sale of the property. The property, and the proceeds from property that your bankruptcy trustee sells or liquidates that you are entitled to, is called exempt property. Exemptions may enable you to keep your home, a car, clothing, and household items or to receive some of the proceeds if the property is sold.

Exemptions are not automatic. To exempt property, you must list it on Schedule C: The Property You Claim as Exempt (Official Form 106C). If you do not list the property, the trustee may sell it and pay all of the proceeds to your creditors.

Chapter 11: Reorganization

$1,167 filing fee

+

$571 administrative fee

$1,738 total fee

Chapter 11 is often used for reorganizing a business, but is also available to individuals. The provisions of chapter 11 are too complicated to summarize briefly.

Notice Required by 11 U.S.C. U.S.C. ? 342(b) for Individuals Filing for Bankruptcy (Form 2010)

page 6

Read These Important Warnings

Because bankruptcy can have serious long-term financial and legal consequences, including loss of your property, you should hire an attorney and carefully consider all of your options before you file. Only an attorney can give you legal advice about what can happen as a result of filing for bankruptcy and what your options are. If you do file for bankruptcy, an attorney can help you fill out the forms properly and protect you, your family, your home, and your possessions.

Although the law allows you to represent yourself in bankruptcy court, you should understand that many people find it difficult to represent themselves successfully. The rules are technical, and a mistake or inaction may harm you. If you file without an attorney, you are still responsible for knowing and following all of the legal requirements.

You should not file for bankruptcy if you are not eligible to file or if you do not intend to file the necessary documents.

Bankruptcy fraud is a serious crime; you could be fined and imprisoned if you commit fraud in your bankruptcy case. Making a false statement, concealing property, or obtaining money or property by fraud in connection with a bankruptcy case can result in fines up to $250,000, or imprisonment for up to 20 years, or both. 18 U.S.C. ?? 152, 1341, 1519, and 3571.

Chapter 12: Repayment plan for family farmers or fishermen

$200 filing fee

+

$78 administrative fee

$278 total fee

Similar to chapter 13, chapter 12 permits family farmers and fishermen to repay their debts over a period of time using future earnings and to discharge some debts that are not paid.

Chapter 13: Repayment plan for individuals with regular income

$235 filing fee

+

$78 administrative fee

$313 total fee

Chapter 13 is for individuals who have regular income and would like to pay all or part of their debts in installments over a period of time and to discharge some debts that are not paid. You are eligible for chapter 13 only if your debts are not more than certain dollar amounts set forth in 11 U.S.C. ? 109.

Under chapter 13, you must file with the court a plan to repay your creditors all or part of the money that you owe them, usually using your future earnings. If the court approves your plan, the court will allow you to repay your debts, as adjusted by the plan, within 3 years or 5 years, depending on your income and other factors.

After you make all the payments under your plan, many of your debts are discharged. The debts that are not discharged and that you may still be responsible to pay include:

domestic support obligations,

most student loans,

certain taxes,

debts for fraud or theft,

debts for fraud or defalcation while acting in a fiduciary capacity,

most criminal fines and restitution obligations,

certain debts that are not listed in your bankruptcy papers,

certain debts for acts that caused death or personal injury, and

certain long-term secured debts.

Notice Required by 11 U.S.C. U.S.C. ? 342(b) for Individuals Filing for Bankruptcy (Form 2010)

page 7

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