How to Declare Bankruptcy in California
Individuals from all walks of life find themselves facing financial difficulties and challenges that warrant declaring bankruptcy. As a California resident, if you are considering bankruptcy you need to follow the specific rules and procedures that are established both by the U.S. Bankruptcy Code and by the local California bankruptcy court rules.
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Things You'll Need
- Petition for bankruptcy
- Matrix (list) of creditors
- Bank statements
- Paycheck stubs
- Federal income tax returns
Instructions
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1
Determine in which California bankruptcy court's jurisdiction you reside. There are four bankruptcy districts in California: central, eastern, northern and southern. Each district maintains courts in the major cities within their jurisdictions.
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2
Obtain a copy of the local rules for the specific California bankruptcy court in which you plan to file your case. You can obtain the local rules through the clerk's office at each court, or download them from the appropriate court's website.
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Select the type of bankruptcy that is most appropriate to your situation. A Chapter 7 bankruptcy liquidates or discharges your debts. A Chapter 13 bankruptcy allows you to pay off your creditors through a court-developed payment plan over the course of two to five years.
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Complete the required consumer credit counseling and education program required by the California bankruptcy court prior to proceeding with a case. Each of the bankruptcy clerk's offices can provide information on approved credit counseling and education programs.
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Make a comprehensive list of all of your creditors, their addresses, account numbers and the amount of money that you owe to each one. The U.S. Bankruptcy Code requires that all creditors be named in and informed of your bankruptcy case. The information you gather will be included in what is known as the matrix of creditors.
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Gather financial documentation to be filed with your bankruptcy petition. Pursuant to the U.S. Bankruptcy Code and the local rules in all four California districts, the documentation needs to include bank statements for the past 90 days and your federal income tax returns for the past three years. Copies of your paycheck stubs going back 90 days also need to be gathered.
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Obtain a petition form and other documents necessary to file a bankruptcy case. Each of the California bankruptcy courts maintains standard form petitions and related materials that comply with local court rules. You can obtain these forms either from the clerk of the court or by downloading them from the appropriate court's website.
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Complete the bankruptcy petition form and related materials.
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File the petition and other documents together with the supporting materials you gathered and compiled. Contact the clerk's office in advance of making your filing to determine how many copies you will need and how much the filing fee is for your case.
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Tips & Warnings
Bankruptcy cases are complex. Therefore, while you can pursue a case on your own and without legal representation, you likely are better served engaging the services of a qualified and experience bankruptcy lawyer. The State Bar of California, at (415) 538-2000, will provide you guidance as to finding lawyers who practice in the bankruptcy arena.
