Bankruptcy - Involuntary

Answer to Involuntary Petition

Official Procedure Last Change December 1, 2019

Answer to Involuntary Petition

How to file:

Location of event: Bankruptcy > File Involuntary Bankruptcy Case & Pleadings > File Pleadings in Involuntary Case > Involuntary Answer
  • 11 USC 303(d)(h)
  • FRBP 1007 (a)(2), 1013

          

General Information

  • An Answer filed by a debtor is a formal written statement that either consents or objects to the petition that was filed by a petitioning creditor.  The deadline for filing a response is 21 days from the date the Summons was issued by the court to the petitioning creditors.
  • Once the time to file an answer has passed, the court makes a determination as to whether or not the Involuntary Petition will be allowed to proceed. If the debtor fails to file an answer before the deadline, the court may enter an order for relief as requested in the petition without further notice to the debtor.
  • Seven days after the entry of the Order for Relief, the debtor must file a list of creditors, a diskette containing the list of creditor and a Statement of Social Security Number (if the debtor is an individual). The debtor must file Schedules and Statement of Financial Affairs 21 days after the entry of the Order. 

Filing requirements

  • The Answer must be signed by the filing party.
  • The Answer must contain a Certificate of Service.
  • A Corporate Ownership Statement must be filed if the debtor is not an individual or a governmental unit.

Step-by-Step Instructions

1. Log into CM/ECF.

2. Select Bankruptcy > File Involuntary Bankruptcy Case & Pleadings > File Pleadings in Involuntary Case.

3. Enter case number (in the format xx-xxxxx) and click Next.

4. Select Involuntary Answer from the event list and click Next.

5. Select the party filer. If the party is not listed, or cannot be selected, view instructions on adding a new party. Click Next.

Note: The "Attorney/Party Association” screen may appear. If your party selection was correct, check the box to create an association and click Next.

6. Browse to attach the document to be filed (pdf file). Click Next.

7. Select the Involuntary Petition to which the answer relates and click Next.

8. If applicable, select prefix text and/or insert text in text field, then click Next.

9. Verify final docket text. If correct, click Next to submit.

Note: The Notice of Electronic Filing displays giving you the document number. Copies of this notice are immediately e-mailed to all participants who receive electronic notification in the case.

Consent to Order for Relief

Official Procedure Last Change May 12, 2016

Consent to Order for Relief

How to file:

Location of event: Bankruptcy > File Involuntary Bankruptcy Case & Pleadings > File Pleadings in Involuntary Case > Consent to Entry of Order for Relief

Things to be aware of when filing: The consent must be as to relief under the chapter proposed by the involuntary petition.

General Information

  • At any time after the filing of an involuntary petition and before the adjudication of that petition, the alleged debtor can file a consent to the entry of an order for relief. 
  • After the filing of such consent, the Court may enter the order for relief without further notice or hearing.

Filing requirements

  • The consent must be signed by the debtor.
  • The consent must be as to relief under the chapter proposed by the involuntary petition.

Step-by-Step Instructions

1. Log into CM/ECF.

2. Select Bankruptcy > File Involuntary Bankruptcy Case & Pleadings > File Pleadings in Involuntary Case.

3. Enter case number (in the format xx-xxxxx) and click Next.

4. Select Consent to Entry of Order for Relief from the event list and click Next.

5. Select the party filer. If the party is not listed, or cannot be selected, view instructions on adding a new party. Click Next.

Note: The "Attorney/Party Association” screen may appear. If your party selection was correct, check the box to create an association and click Next.

6. Browse to attach the document to be filed (pdf file). Click Next.

7. Final docket text is displayed. Click Next.

8. Verify final docket text. If correct, click Next to submit.

Note: The Notice of Electronic Filing displays giving you the document number. Copies of this notice are immediately e-mailed to all participants who receive electronic notification in the case.

Filing an Involuntary Petition

Official Procedure Last Change April 4, 2018

Filing an Involuntary Petition

How to file:

Location of event: Bankruptcy > File Involuntary Case & Pleadings > File Involuntary Case
  • 11 USC 303(b)
  • FRBP: 1003, 1010, 1011(a), (b), 1013
  • S. D. Ind. B-1010-1, B-1010-2

General Information

  • An involuntary Chapter 7 or 11 case may be commenced under certain circumstances by a petition filed by creditors holding claims against the debtor. 11 USC Section 303(b)
  • If an involuntary petition is commenced by a party who is not represented by counsel, the Clerk shall assign a number to the case and seal the name, the petition, and any documents filed with the petition. Within seven (7) days of the filing, the assigned Judge will review the petition and supporting documents to determine whether the seal should be continued, lifted or modified. The Clerk will notify the UST via telephone of the filing of any involuntary petition that is subject to Local Rule B-1010-1.
  • When an involuntary petition is filed, the Clerk's office will issue a Summons to Debtor in Involuntary Case to the petition creditor(s) who will provide service on the debtor. The debtor will have 21 days from the date of service to contest or object to the petition. The Court will determine the issues of a contested petition and enter an order for relief, dismiss the petition, or enter any other appropriate order. If no pleading or other defense is filed within the time provided, the Court will enter the order for the relief requested in the petition without further notice.
  • An Involuntary Petition can only have one debtor. If more than one debtor exists, a separate involuntary petition must be filed for each individual debtor.
  • If the debtor resides out-of-district, he/she must have resided within the district where the petition is being filed for the greater part of the last 180 days. The current address, even if out-of-district, must be stated on the petition. The county of residents in which the debtor used to live (within district) must be reflected on the petition and selected during the ECF filing process.
  • Pursuant to local rule 9010-1, each attorney representing a petitioning creditor must file a separate appearance for such party. Only those attorneys who have filed an appearance in a pending action shall be entitled to receive service of case documents. Each appearance must be filed as a separate event and failure to file an appearance may result in a Notice of Deficient Filing or other action from the court.

Filing requirements

  • Filing fee for the appropriate chapter.
  • Petitioning creditors must file using Official Form B105 (individual debtors) or B205 (non-individual debtors).
  • The Petition must be signed by all petitioning creditors and their attorneys.
  • Unless petitioning creditor is an individual or a governmental unit, a Statement of Corporate Ownership must be filed along with the petition.

Step-by-Step Instructions

1. Log into CM/ECF.

2. Select Bankruptcy > File Involuntary Case & Pleadings > File Involuntary Case.

3. Select chapter, click Next.

4. Enter Debtor’s/ Joint Debtor’s name or SSN. Click Search.

Note: The party name cannot be in ALL CAPITALS, and cannot be longer than 50 characters.

5. Select Create New Party.

6. Enter all Debtor/ Joint Debtor information.

7. Click Alias to add any aliases.

8. Click Corporate Parent / affiliate to add any corporate parent or affiliate.

9. Click Review to proof added information. Click Return to Party Screen after review.

10. Click Submit. (If petition contains a joint debtor, repeat steps 4 - 10.)

11. Enter Petitioning Creditor’s name or SSN. Click Search.

12. Select Create New Party.

13. Enter all petitioning creditor information.

14. Click Alias to add any aliases.

15. Click Corporate Parent / affiliate to add any corporate parent or affiliate.

16. Click Review to proof added information. Click Return to Party Screen after review.

17. Click Submit. Repeat steps 11 - 17 for all other petitioning creditors.

18. When all petitioning creditors are entered, click End Petitioning Creditor Selection.

19. Assigned divisional office is displayed. Click Next.

20. Complete remaining Petition information and click Next.

21. Browse to select the document to be filed and click Next.

Note: Corporate petitioning creditors must file a Corporate Ownership Statement and are required to file separately the statement using the Corporate Ownership Statement event.

22. Click Next.

23. Fee information is displayed. Click Next.

24. Verify the final docket text; if correct, click Next to submit your document(s).

Note: The Notice of Electronic Filing displays giving you the document number. Copies of this notice are immediately e-mailed to all participants who receive electronic notification in the case.

Involuntary Summons

Official Procedure Last Change April 20, 2012

Involuntary Summons

General Information

The Involuntary Summons is a formal command from the Court which notifies the debtor that an involuntary petition was filed, as well as the date and location of the filing and that a response is required within 21 days of service of the summons. The summons is issued immediately by the Court to the petitioning creditor's attorney.

It is the responsibility of the petitioning creditor's attorney to serve the debtor within 14 days and certify service of the summons in writing with the Court via the events Involuntary Summons Certificate of Service or Involuntary Summons Service Unexecuted. Failure to comply may result in a delay in the processing of the case.

Involuntary Summons Certificate of Service

Official Procedure Last Change April 25, 2012

Involuntary Summons Certificate of Service

How to file:

Location of event: Bankruptcy > File Involuntary Bankruptcy Case & Pleadings > File Pleadings in Involuntary Case > Involuntary Summons Certificate of Service

 

General Information

  • Once the court has prepared and docketed the summons, the petitioning creditor is responsible for serving a copy of the summons on the debtor. Once this has been done, the party that served the summons must file a certificate of service using the instructions below.
  • CM/ECF automatically calculates the due date for the debtor's answer to be filed as 21 days after the date service was made.

Filing requirements

  • The Certificate of Service should indicate:
    • the party or parties served,
    • the date service was made,
    • the name of the person making the service, and
    • the method of service.
  • The Certificate of Service should be signed, along with a statement under penalty of perjury that the information is true and correct.
  • The Involuntary Summons Service Certificate of Service event must be used, not the regular Certificate of Service event. If the Summons could not be served on any of the required parties, the Involuntary Summons Service Unexecuted event should be used to indicate which parties were not served.

Step-by-Step Instructions

1. Log into CM/ECF.

2. Select Bankruptcy > File Involuntary Bankruptcy Case & Pleadings > File Pleadings in Involuntary Case.

3. Enter case number (in the format xx-xxxxx) and click Next.

4. Select Involuntary Summons Certificate of Service from the event list and click Next.

5. Select the party filer. If the party is not listed, or cannot be selected, view instructions on adding a new party. Click Next.

Note: The "Attorney/Party Association” screen may appear. If your party selection was correct, check the box to create an association and click Next.

6. Browse to attach the document to be filed (pdf file). Click Next.

7. Enter the date service was made, as shown on the Certificate of Service, and click Next.

8. Due date for involuntary answer is calculated and displayed. Click Next.

9. Check box(es) next to appropriate docket entry to which this filing relates and click Next.

10. If applicable, select prefix text and/or insert text in text field, then click Next.

11. Verify final docket text. If correct, click Next to submit.

Note: The Notice of Electronic Filing displays giving you the document number. Copies of this notice are immediately e-mailed to all participants who receive electronic notification in the case.