Chapter 6 Complete and File Your Bankruptcy Paperwork

• Library: How to File for Chapter 7 Bankruptcy (Nolo) (2022 Ed.)

CHAPTER 6 Complete and File Your Bankruptcy Paperwork

Gather the Necessary Documents

The Credit Counseling Certificate

Your Tax Return or Transcript

Wage Stubs

Other Documents

Get Some Information From the Court

Fees

Local Forms

Local Court Rules

Order of Papers and Other Details

Number of Copies

For Married Filers

Are You Married?

Should You File Jointly?

Required Forms and Documents

Checklist of Required Official Bankruptcy Forms

Where to Get the Official Forms

Tips for Completing the Forms

Voluntary Petition for Individuals Filing for Bankruptcy (Form 101)

Relating to Eviction Judgments (Forms 101A and 101B)

Form 106 Schedules

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

Schedule C—The Property You Claim As Exempt (Form 106C)

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

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

Schedule G: Executory Contracts and Unexpired Leases (Form 106G) .... 249

Schedule H: Your Codebtors (Form 106H)

Schedule I: Your Income (Form 106I)

Schedule J—Your Expenses (Form 106J)

Summary of Your Assets and Liabilities and Certain Statistical Information (Form 106Sum)

Declaration About an Individual Debtor's Schedules (Form 106Dec).......263

Statement of Financial Affairs for Individuals Filing for Bankruptcy (Form 107)

Statement of Intention for Individuals Filing Under Chapter 7 (Form 108)

Your Statement About Your Social Security Numbers (Form 121)

The Means Test Forms

Chapter 7 Statement of Your Current Monthly Income (Form 122A-1)

Chapter 7 Means Test Calculation (Form 122A-2)

Statement of Exemption from Presumption of Abuse (Form 122A-1Supp)

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

Creditor Mailing List

How to File Your Papers

Basic Filing Procedures

Paying in Installments

Waiver of Filing Fee

Emergency Filing

After You File

The Automatic Stay

The Trustee Takes Ownership of Your Property

This chapter shows you how to take all of the necessary steps to prepare your case for filing under Chapter 7. For the most part, the process is simple, as long as you follow all of the instructions we provide.

CAUTION

Chapter 7 bankruptcy can be a very straightforward process, but only if you follow the rules. If you make a mistake—even accidentally—your bankruptcy case might be dismissed. In most cases, you can correct errors with an amendment. But sometimes errors are not correctable and your case will be dismissed with dire consequences: Not only will you continue to owe your debts and face creditor collection actions, but you might also lose the protection of the automatic stay in any future bankruptcy case you file within the next year (see Ch. 2 for more information on the automatic stay).

Gather the Necessary Documents

Along with the official bankruptcy forms, you will also have to provide:

• certification showing that you completed a credit counseling workshop within the last 180 days
• your most recent federal tax return or a transcript of the return (this goes either to the trustee or the court, depending on where you file), and
• your wage stubs for the last 60 days.

Before you can get your bankruptcy discharge, you must also file a certification showing that you completed counseling on personal financial management (Form 423—Certification About a Financial Management Course, covered in Ch. 7) along with a certificate of completion from the counseling agency itself. In addition, the trustee might mail you a request for other documents—or request the documents at your 341 hearing. You should do your best to comply with any reasonable request. Requests related to your financial situation are generally reasonable.

Follow These Rules to Stay Out of Trouble

If you keep these golden rules in mind, you'll save yourself a lot of time and trouble:

• Don't file for Chapter 7 bankruptcy unless you are sure it is the right choice (Ch. 1 explains how to make this decision).
• Don't file until you have assembled all of your documents as directed in this chapter.
• Don't file until you have a certificate showing that you have completed your credit counseling workshop.
• If you can, pay your filing fee in full rather than in installments, so you don't have to worry about your case being dismissed if you miss a payment.
• Be absolutely honest when filling out your paperwork.
• File all of your documents simultaneously (unless you have to file an emergency petition to stop an impending foreclosure, wage garnishment, or repossession).
• Don't file your case until you have your most recent federal tax return (or a transcript) in your hands.
• Serve your tax return (or transcript) on the trustee and any creditors who request it as soon after you file as possible. If you don't serve it at least seven days before the creditors' meeting, theoretically your case could be dismissed, although that is rare. Do the same with your paycheck stubs.
• If you haven't filed a tax return for two or more tax years, send the trustee a written, signed note explaining when you last filed. If relevant, explain why you haven't filed (for instance, your income no longer requires you to file).
• Immediately amend your paperwork if the trustee asks you to.
• Respond to the trustee's request for any supplemental documentation as quickly as possible.
• Don't forget your personal financial management counseling. You won't receive a discharge unless, within 45 days after your creditors' meeting, you file Form 423 certifying that you have completed this course along with the certificate of completion from the counseling agency itself. (Ch. 7 explains how.)

The Credit Counseling Certificate

As explained in Ch. 1, every person who files a consumer bankruptcy must first attend credit counseling within 180 days before filing. The counseling can be done by phone, online, or in person. You'll find a list of approved counselors on the U.S. Trustee's Office website at www.justice.gov/ust (click "Credit Counseling & Debtor Education"). The agencies are listed by state and court district. Select an agency approved by your court.

Once you finish your counseling, the agency should give you a certificate of completion. You'll verify your attempts to obtain counseling on Part 5 of your bankruptcy petition (see the instructions for completing the petition below). The certificate must be filed within 14 days after you file unless you fit within a rare exception. Many agencies will file your certificate for you, but file it with your other paperwork if the agency won't. That way, you won't forget and end up getting your case dismissed.

Repayment Plans

The purpose of credit counseling is to get you to sign up for a debt repayment plan instead of filing for bankruptcy. If the plan makes sense and you believe you can faithfully make the required payments, consider signing up for it. However, keep in mind that even if you make the payments month after month, the creditors can pull out if you fall behind and go after you for the remaining debt. If you decide to file for Chapter 7 afterward, you will have paid back all that money for no good reason. This is why most bankruptcy professionals discourage their clients from signing up for a debt repayment plan.

Even if you have no intention of signing up for a plan, you must cooperate with the debt counseling agency and create a plan if they think one is possible. In many cases, it's clear that a plan won't be feasible. Debtors who have funds to pay creditors will have to file the plan with the court along with the certificate of completion and other bankruptcy papers. If the U.S. Trustee suspects that you might be able to repay creditors in Chapter 13, reviewing the agency's plan will be part of the decision-making process.

Counseling Fees

Most of these credit counseling agencies charge a modest sum ($25—$50 is typical) for the counseling, coming up with a repayment plan (if it gets that far), and the certificate of completion that you'll need to file with your other bankruptcy papers.

Agencies are legally required to offer their services without regard to your ability to pay. (11 U.S.C. § 111(c)(2)(B).) If an agency wants to charge more than you can afford, inform the agency of this legal requirement.

Exceptions to the Counseling Requirement

You don't have to get counseling if the U.S. Trustee certifies no appropriate agency is available in the district where you will be filing. However, counseling can be provided by telephone or online, so it is unlikely that approved debt counseling will ever be unavailable.

However, in one case, a bankruptcy court found that counseling was not "available" to a debtor who spoke Creole because none of the credit counseling agencies in his area could accommodate his language needs. (In re Petit-Louis, 344 B.R. 696 (Bankr. S.D. Fla. 2006).) Presumably, this same rule would apply to any debtor who doesn't speak standard English and can't obtain counseling in his or her native language (or through a translator). Since this case was decided, more multilingual credit counseling agencies are available.

You can also avoid the requirement if you ask the court to grant an exception and prove that "exigent circumstances" prevented you from getting counseling. You'll have to show that both of the following are true:

• You had to file for bankruptcy immediately (perhaps to stop a creditor from levying on your paycheck or bank account).
• You were unable to obtain counseling within seven days after requesting it.

CAUTION

A foreclosure may not be "exigent" enough. Several courts have found that a debtor who waits until the last minute to seek credit counseling might not qualify for an exception to the counseling requirement. For example, in Dixon v. La Barge, Jr., 338 B.R. 383 (B.A.P. 8th Cir. 2006), the court found no exigent circumstances existed when a debtor filed for bankruptcy on the day of a scheduled foreclosure sale. In that case, the debtor claimed to have learned that he could file for Chapter 7...