Filing an Involuntary Case

Official Procedure - Last Updated: October 22, 2021Author:

References

CM/ECF Menu	Bankruptcy>Open Involuntary Case
Event	None
Rules / Code / Resources	Fed.R.Bankr.P. 1003 & 1004 11 U.S.C. § 303 Local Rule

Eligible Chapters that can be filed as an Involuntary Petition

An involuntary case may be commenced only under chapter 7 or 11 of this title, and only against a person, except a farmer, family farmer, or a corporation that is not a moneyed, business, or commercial corporation, that may be a debtor under the chapter under which such case is commenced.

Filing Requirements

• Involuntary Petition Against an Individual (B 105) 
• Involuntary Petition Against a Non-Individual (B 205)
• Filing Fee

Judge Assignment

After the case is opened and the Judge is assigned, you must prepare the Summons using local form 7-2 or 11-2 and drop it off at the Intake counter to be issued.

• Chapter 7: Form 7-2 Summons to Debtor in Involuntary Case

• Chapter 11: Form 11-2 Summons to Debtor in Involuntary Case

Step-by-Step Procedure

1. Select Bankruptcy>Open Involuntary Case

Note: The only selection you will make on the first screen is the chapter. All other fields are either defaulted or no change required.

2. Select Chapter from the drop down option and click Next
3. Search for an Alleged Debtor by the social security number or tax identification number

If the social security number or tax identification number are not available, conduct search by name

Business - enter business name in Last/Business name field

Individual - enter last name, first name and middle name fields

4. Click Search

No match found - "No person found" message will display. For instructions on how to complete, select No Person Found

Match found - the party search results box will display with all possible matches. For instructions on how to complete, select Party Record Found

No Person Found

• Click Create new party
• Complete Alleged Debtor's information
  • SSN/EIN or Tax Id/EIN

  If the SSN/EIN or Tax Id/EIN are not provided enter all zeros
  
  Example: SSN/EIN enter 000-00-0000
  
  Example: Tax Id/EIN enter 00-0000000

  • Address information - Address 1 should always display the street address
  • City
  • State
  • Zip
  • County
  • Alias, if applicable

  Do Not complete the following fields: Office, Country, Phone, E-mail, Fax or Party text.

• Click Submit

Party Record Found

• Select name. A pop-up window will display the party information. If this is not the correct party, create new party/If this is the correct party
• Click Select name from list
• If applicable, update alleged debtor's information

Do Not complete the following fields: Office, Country, Phone, E-mail, Fax or Party text.

• Click Submit

5. Search for a Petitioning Creditor

Business - enter business name in the Last/Business name field

Individual - enter the last name, first name and middle name fields

6. Click Search

No match found - "No person found" message will display. For instructions on how to complete, select No Person Found

Match found - the party search results box will display with all possible matches. For instructions on how to complete, select Party Record Found

No Person Found

A message will appear, "Party Search Results No Person Found" click Create new party

• Complete Petitioning Creditor's information
  • Do Not enter SSN/EIN
  • Address information - Address 1 should always display the street address
  • City
  • State
  • Zip Code
  • County
  • Alias, if applicable

  Do Not complete the following fields: Office, Country, Phone, E-mail, Fax or Party text.

Party Record Found

• Select name. A pop-up window will display the party information. If this is not the correct party, create new party/If this is the correct party
• Click Select name from list
• If applicable, update petitioning creditor's information

Do Not complete the following fields: Office, Country, Phone, E-mail, Fax or Party text.

7. Attorney for petitioning creditor is required, select one of the following

• Check Box, if the user opening the case is the filing attorney for this party; or

• Click Attorney button to add an attorney

• Enter Last name of attorney and click Search

Attorney search results will display

Attorney's Name Appears

• Select attorney from window
• Verify attorney address information

If address does not match, you will update the address information to match document filed.

• Click Select name from list
• If applicable, update the address information to match the document filed

Attorney's Name Does Not Appear

• Select Create new attorney
• Add address information for the attorney

Do Not add the Country, Fax and E-mail address for the attorney.

• Lead attorney defaults to yes. Do Not change

• Click Add attorney
• Click OK to bypass warning messages

8. Click Submit

If warning messages display, click OK to continue

If applicable, repeat steps 5 - 8 to add all petitioning creditors

9. Click End petitioning creditor selection
10. Divisional Office will default to appropriate division, click Next
11. From page 1 of the Involuntary Petition complete the following:

Chapter 7 Involuntary Petition

• Nature of debt - Individual, select consumer; Business, select business
• Type of debtor defaults to Individual; Business make the appropriate change
• Nature of business - Individual leave blank; Business make the appropriate selection

Tax-Exempt Entity can be selected in conjunction with any type of business.

Chapter 11 Involuntary Petition

• Small business, select n or y from drop down option
• Type of debtor defaults to Individual; Business make the appropriate change
• Nature of business - Individual leave blank; Business make the appropriate selection
• Nature of debt - Individual, select consumer; Business, select business
• Review documents being filed and check the boxes if:
  • A plan is being field with this petition
  • Acceptances of the plan were solicited pre petition

Tax-Exempt Entity can be selected in conjunction with any type of business.

12. Click Next
13. Attach the document
    • Click Browse button and navigate to locate the document
      View file (right-click>select open with adobe to view; click red X in the upper right-hand corner to close view)
    • Click Open and the filename will appear in the browse window
    • Click Next

Petitioners in Involuntary Cases are ineligible for installments payments. Filing fee is due at the time of filing.

14. The filing fee will display, click Next
15. Click Next

The Final Text screen will display.

16. Verify the accuracy of the docket text. If not click Bankruptcy to start over, If yes
17. Click Next to submit

Electronic Payment

18. Select one of the two options:

• Pay Now - this option allows you to make the payment and the end of the filing process

• Continue Filing - this option allows you to continue filing cases or documents and paying the fee at the end of your filings.
• If you select this option, please remember to select Utilities>Internet Payments Due and process all outstanding payments due

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Once the bankruptcy judge has been assigned, prepare the required Summons to Debtor in Involuntary Case specific to the chapter.