Involuntary Case Opening

 

OVERVIEW

 

Involuntary petitions are filed by creditors and can only be filed as a Chapter 7 or 11.  

It is important to complete all steps in this procedure.

 

PROCEDURE

 

        1. Click Bankruptcy

        2. Click File New Involuntary

        3. Select the following:

 

Case Type

BK

Case Number

Skip, system will auto assign

Chapter

Enter chapter number (7 or 11 only)

Joint

Select N (no) or Y (yes) to indicate joint filing

Deficiencies

If there are items missing from the petition, change the Deficiencies box from N (no) to Y (yes).  

 

        1. Click Next

        2. Search for the correct party

          • Enter the last name or business name of the alleged debtor

          • Click Search (search hints)

          • Party Search Results:

 

If

Then

name appears

Select name from list and verify information.

debtor's name does not appear

Click Create New Party

 

        1. Party Information Screen

At the Party Information screen, complete the following fields:

        • Name: Name of the petitioning creditor

        • Role type: Petitioning Creditor YOU MUST ENTER A ROLE TYPE

        • Party text: Further descriptive text, e.g. "A Texas Corporation"

        1. Click Submit

        2. Click End Part Selection

        3. Divisional office is displayed

        4. Click Next

        5. Message appears: "Change the Voluntary field to INVOLUNTARY on the next screen."

        6. Click Next

        7. At the Statistical Data screen, enter the following fields:

 

Type of debtor

Select appropriate debtor type

Fee status

Select Paid (Installment payments cannot be made on an involuntary petition)

Nature of debt

Select Business or Consumer

Voluntary

Change to Involuntary

Origin

Defaults to Original

Date split/transfer

Skip

Asset notice

Chapter 7 accept default of N for no asset, Chapter 11 change to Y for asset

Estimated number of creditors

Accept the default range

Estimated assets

Accept the default range

Estimated debts

Accept the default range

 

        1. Click Next

        2. Select appropriate event for either Ch. 7 or Ch. 11

        3. Click Next

        4. Attach Involuntary Petition PDF

        5. Click Next

        6. Enter name of Alleged debtor

        7. Enter the Receipt # as “cc” for credit card transaction

 

NOTE: Installment payments cannot be made on an involuntary petition

 

        1. Click Next

        2. Modify docket text as appropriate

        3. Click Next

 

WARNING: Verify filing entry information is correct before submitting the Final Docket Text.

 

        1. Click Next

        2. The Notice of Electronic Filing screen should appear showing the information you just entered.  This screen will also indicate to whom electronic notices have been sent.

        3. Assign the Judge, Trustee and 341 Meeting.

 

NOTE: The clerk’s office must add the alleged debtor as a party after the involuntary case is opened.  The clerk’s office will also issue a summons.