How to File for Chapter 7 in California
- 1). Visit the website for the U.S. Department of Justice to find a credit counselor in California. You must complete credit counseling within the 180 days prior to filing for Chapter 7 bankruptcy. In your credit counseling session, your counselor will examine your financial situation and advise you on how to proceed. If you and your credit counselor create a debt management plan, you must file this plan with the court when you file your bankruptcy petition.
- 2). Download the bankruptcy petition and schedules from the website for the U.S. Bankruptcy Court or contact the California court that serves your city. California has four districts: Eastern, Western, Northern and Southern. Contact one of the bankruptcy courts to find out which court serves your city.
- 3). Complete the petition using black ink. On the first page of the petition, provide general information: your name, address, Social Security number and other identifying or contact information. Joint filers--those who are filing for Chapter 7 along with a spouse--must provide information about their spouse as well. Indicate on the petition that you are filing for Chapter 7 bankruptcy rather than Chapter 13.
- 4). Complete Schedules A through J. List all of your income, assets and debts. If you intend to keep your home or car, you must also declare these exempt. As of 2010, you may claim an exemption in California for your home if you have less than $50,000 in equity in the home ($75,000 if you are married). You may keep your car if you have less than $2,250 worth of equity in the car.
- 5). Answer questions 1 through 18 on the Statement of Financial Affairs. Business owners must also answer questions 19 through 25. These questions pertain to your income, assets and debts. Answer questions honestly. Information on this questionnaire must be consistent with information on your petition and schedules.
- 6). Complete the means test calculation to prove that you make less than the median income for California. As of 2010, the median income in California is between $48,200 and $103,500 depending on your county of residence.
- 7). Report whether you intend to surrender, keep or sell each piece of your property on the Chapter 7 Statement of Intention. You must follow through with your intentions within 90 days of filing for bankruptcy.
- 8). Return to the Department of Justice website to find an approved financial management course. (Note: this course is different from the credit counseling course you took earlier.) Enroll in and complete the course. Attach your proof of completion to your bankruptcy petition and forms.
- 9). Type a list of your creditors. Provide each creditor's name and address. Double space between creditors and type on only one side of the sheet. Attach the list to your petition and schedules.
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Sign any additional relevant statements, such as the notice to consumer debtors and the statement for debtors who prepared the forms without the aid of an attorney. - 11
Make a copy of the complete bankruptcy package for yourself and file the original at the courthouse that serves your district. Pay the filing fee ($299 as of 2010). If you cannot afford to pay the fee, apply for a waiver or permission to pay the fee in installments and attach the application to your bankruptcy paperwork when you file. - 12
Wait several weeks to get your notice of filing of bankruptcy in the mail. The notice will tell you when and where to attend a meeting of creditors and will give you the name and address of your bankruptcy trustee. Send your trustee a copy of your latest tax return and last three pay stubs at least 7 days before this meeting. - 13
Attend the meeting of creditors. Answer honestly all the questions your bankruptcy trustee has for you. - 14
Check your mail for a notice stating your debts have been discharged.
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