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 |
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.