Annual Report 2019 - Cacb.uscourts.gov

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ALDIIFTRORCENNIAURTCOUNITEDYANKRUES BPTATCTSSTRICT OFCAL2019ANNUALREPORTUnited States Bankruptcy CourtCentral District of CaliforniaHonorable Maureen A. TigheChief JudgeKathleen J. CampbellExecutive Officer/Clerk of Court

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ANNUAL REPORT 2019Table of ContentsINTRODUCTION .Executive Summary.Our Mission .Our Vision .The Bankruptcy Judges of the Central District of California.District Profile.Population Served.1355677ADMINISTRATION OF JUSTICE.JUSTICE . 9JUDICIAL CASELOAD.11CASELOADBankruptcy Filings.11Adversary Proceedings.12Self-Represented Litigants’ Filings.12Cases of Interest.13KEY STUDIES, ACTIVITIES, AND ACCOMPLISHMENTS.ACCOMPLISHMENTS .14Development and Drafting of 2020-2024 Strategic Plan.14Clerk’s Office Continues to Offer Shared Administrative Services.14Court Develops Long-Range Space Utilization Plan.15Destruction of Paper Documents.15Local Chapter 13 Revisions: Plan, Confirmation Order and Docket Event.15Internal Controls and Audit.16Addressing Budget Challenges.16ACCESS TO JUSTICE AND SERVICE TO THE PUBLIC.17PUBLICHonor Roll Receptions Held Throughout the Central District.19Petition Packages and Official Forms and Instructions.19Court Provides Input for NextGen eSR Development.20JUDICIARY WORKFORCE OF THE FUTURE.FUTURE .21Judicial Transitions and Milestones.23Judge Tighe Appointed Chief Bankruptcy Judge.23Passing of Judge Barr.23Profiles, Awards, and Committees.24Profiles .24Awards .26Committee Appointments.32HUMAN RESOURCES AND ORGANIZATIONAL DEVELOPMENT.35DEVELOPMENTStaff Attends 2019 Human Resources Forum.35Employee Dispute Resolution Policy .35United States Bankruptcy Court - Central District of California3

ANNUAL REPORT 2019Court Staff Attend Ninth Circuit EDR Coordinators Conference.35Procedures and Training Provided to Operations Staff.36Summer Interns .36Buyout/Early Retirement Authority.36LEARNING & DEVELOPMENT.DEVELOPMENT .37Learning & Development Courses Train and Educate Court Personnel .37Together Toward Tomorrow.37Court Staff Graduates from MSU Judicial Administration Certificate Program.37Professional Development Opportunity for Clerk’s Office Staff Begins.38Clerk’s Office Staff Participate in Federal Court Leadership Development Program.38Clerk’s Office Introduces New SHOT Professional Development Program.38Law Clerk/Extern Training Program.39Clerk’s Office Sends 41 Staff to NCBC 2019.39Clerk’s Office Chosen to Host National Conference of Bankruptcy Clerks in 2020 .39Court Staff Attend IT Conference West.39Bringing the Future into Focus: 2019 Winter Education Seminar .39Drupal GovCon .40A SOLID INFRASTRUCTURE .41Financial .43Court Navigates Historic Shutdown .43FY 2019 Budget .43FY 2020 Judiciary Appropriations.43TECHNOLOGY AND INNOVATION.44INNOVATIONClerk’s Office Adopts JFinSys Accounting Software .44Riverside Division Develops Intake Dashboard Online Tool .44National Video Teleconferencing Service Training.44New Video Hearing Systems in Riverside and Northern Divisions.44New Displays and Video Conference Systems Installed.44Creditor Matrix Program Launched.44Clerk’s Office Upgrades Its Third-Party Filer Tracker Program.44Court Increases CM/ECF PDF Download File Size .45Automated Case Closing Program Enhancement .45eSR Case Upload Component Launched .45Online Access Provided for Fees Awarded to Trustees and Professionals .45Clerk’s Office and FJC Develop Tableau Site .45Court Adopts Microsoft Outlook as Email Client.45Innovative Automation Training: “The Art of Possible” .46Court Expands Use of SharePoint .46Network Improvements.46Court Aces AO’s Information Security Scorecard.46Statistics Dashboard.464United States Bankruptcy Court - Central District of California

ANNUAL REPORT 2019Audio Visual Department Established.46Rollout of New Network Core Switches at All Divisions.47Clerk’s Office Replaces 400 PC Monitors.47Courtroom Redesign .47FACILITIES AND SECURITY.SECURITY .48Riverside Division Space Modification Project.48Public Information Monitor Installed in Riverside Division.48Systems Furniture Installed in San Fernando Valley and Northern Divisions.48EMERGENCY PREPAREDNESS .49CPR/First Aid/Automated External Defibrillator (AED) Training.49Pepper Spray Training.49Community Emergency Response Team Training.49PUBLIC UNDERSTANDING, TRUST, AND CONFIDENCE.CONFIDENCE .51COURT EVENTS AND COMMUNITY OUTREACH.OUTREACH .53Roadways to the Federal Bench: Who Me? A Bankruptcy Judge?.53Girl Scouts Visit Los Angeles Division.53An Inspiring Law Day Focused on the 4th Amendment.54Loyola Law School Consumer Bankruptcy Clinic Mock Trial and Reception.54Santa Ana Career Exploration Day.55Los Angeles and Santa Ana Divisions Welcome High School Students for Federal Courthouse Exploration Day.55San Fernando Valley Division Hosts March Outreach.55San Fernando Valley Division Hosts Federal Career Day.56Financial Awareness for UCLA SMASH Academy Scholars.562019 Central District of California Civics Contest and Awards Ceremony.56SPEAKING ENGAGEMENTS, EVENTS, AND PROGRAMS.PROGRAMS.58Naturalization Ceremonies .58APPENDICES.63APPENDICES.Appendix I: 2014 – 2019 Court Strategic Plan Accomplishments.65Appendix II: Bankruptcy Filings and Percentage Change: 1980 – 2019.89Appendix III: Pro Bono Honor Roll.95Appendix IV: About the Court.98United States Bankruptcy Court - Central District of California5

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Introduction

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ANNUAL REPORT 2019EXECUTIVE SUMMARYIn 2019, the U.S. Bankruptcy Court for the Central District of California engaged local students and stakeholders throughcommunity outreach, expanded resources for self-represented litigants, and fortified IT security practices and policies.Highlights of the year include: Judge Tighe assumed her post as the eighth ChiefBankruptcy Judge for the Central District of California,succeeding Chief Judge Bluebond. On January 31,the Passing of the Gavel ceremony at the RichardH. Chambers U.S. Court of Appeals in Pasadenacommemorated the succession from Judge Bluebondto Judge Tighe. The Central District of California led the nation in selfrepresented litigants’ filings during the 12-month periodending December 31, 2019. The Central District’s rateof self-represented litigants’ filings for the year was 15.4percent, nearly two times the national average of 8.3percent. Additionally, the Central District of Californialed the nation with the highest total of business filings. The year opened with a lapse in appropriations thatbegan on December 21, 2018, when the continuingresolution that funded the Court expired, and lasteduntil January 24, 2019. The Judiciary was able tomaintain paid operations for the duration of the 34-daygovernment shutdown by using its fee authority andno-year appropriations. During this time, the Courtlimited its activities only to recognized exceptions tothe Anti-Deficiency Act. Judge Smith received the Judge Karen L. RobinsonLegal Excellence Award during the Thurgood MarshallBar Association Second Annual Gala and InstallationDinner. Chief Judge Tighe received the Co-President’s Awardfrom the Los Angeles LGBT Bar Association. Judge Klein received the 2019 Women of DistinctionAward from the Girl Scouts of Greater Los Angeles attheir Gold Award Gala. Chief Judge Tighe received the Access to JusticeAward from Neighborhood Legal Services of LosAngeles County during the “10th Anniversary of theCentral District’s Woodland Hills Bankruptcy Self-HelpCenter” program. Judge Zurzolo was honored at the 2019 William J.Lasarow Awards Reception in Los Angeles. The interactive Statistics Dashboard went live onthe Court’s website. The new tool creates graphicalrepresentations of up-to-date filing and closing datafor chapter 7, 11, and 13 cases, as well as adversaryproceedings. The Court’s Strategic Planning Committee draftedand approved its new 2020-2024 Strategic Plan afterrequesting and receiving input from stakeholders,including judges, lawyers, and staff, through hostingfocus groups and a public comment period. The newstrategic plan will take effect on January 1, 2020.Along with the Ninth Circuit, the Central District ofCalifornia hosted a civics contest for high schoolstudents in the district. The annual civics contestaddressed unreasonable searches and seizures in thedigital age.Receptions held throughout the Central Districtrecognized the service of pro bono volunteers. Theattorneys, law students, paralegals, and interpreterswho assist the district’s self-represented litigantsare listed in yearly updates to the Court’s Honor Roll,published in conjunction with the American BarAssociation’s National Pro Bono Celebration Week.United States Bankruptcy Court - Central District of California3

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ANNUAL REPORT 2019OUR MISSIONTo serve the most populous and diverse judicial district in the country by providing bankruptcyrelief, fair and impartial justice, and a prompt and efficient resolution of disputes.OUR VISIONThe United States Bankruptcy Court for the Central District of California will provide thehighest quality of justice and service to the public by: Maintaining a safe, professional environmentAdhering to high standards of conduct and professional developmentTreating the public with dignity and respectBeing accessible, convenient, understandable, and responsive to the needs of the district’sdiverse communityAllocating and managing resources efficiently and effectivelyUsing advanced technology to support the Court, enhance access to justice, and servethose who access the CourtEducating the public about the role and function of the Court and the services providedUnited States Bankruptcy Court - Central District of California5

ANNUAL REPORT 2019THE BANKRUPTCY JUDGES OF THECENTRAL DISTRICT OF CALIFORNIATop Row (left to right): Mark D. Houle, Martin R. Barash, Theodor C. Albert, Wayne Johnson,Scott C. Clarkson, Ernest M. Robles, Neil W. Bason, and Deborah J. SaltzmanMiddle Row (left to right): Erithe A. Smith, Catherine E. Bauer, Sandra R. Klein, Victoria S. Kaufman,Robert N. Kwan, Mark S. Wallace, and Scott H. YunFront Row (left to right): Barry Russell, Geraldine Mund, Maureen A. Tighe (Chief Judge), Sheri Bluebond,Vincent P. Zurzolo, and Julia W. Brand6United States Bankruptcy Court - Central District of California

ANNUAL REPORT 2019IN PROFILEDistrict ProfileThe Ninth Circuit is the largest of the 12 federal circuits in terms of size, population, number of federal judges, and volumeof litigation. The U.S. Bankruptcy Court for the Central District of California is one of 13 bankruptcy courts within the NinthCircuit, which includes the federal courts of Alaska, Arizona, California, Hawaii, Idaho, Montana, Nevada, Oregon, Washington,Guam (a United States Territory), and the Northern Mariana Islands (a United States Commonwealth).Covering approximately 40,000 square miles, encompassing seven counties, and served by 22 judges, the U.S. BankruptcyCourt for the Central District of California is one of the largest bankruptcy courts in the United States. The Central Districtserves the residents of Los Angeles, Orange, Riverside, San Bernardino, Santa Barbara, San Luis Obispo, and Ventura Counties,with courthouses in Los Angeles, Riverside, Santa Ana, Santa Barbara, and Woodland Hills.Population ServedWith a population of more than 19.4 million people, the Central District is home to nearly 50 percent of the state’s population.According to the United States Census Bureau, the Central District is home to four of the five most populous counties in thestate, and four of the 12 most populous counties in the United States (Los Angeles, Orange, Riverside, and San BernardinoCounties).United States Bankruptcy Court - Central District of California7

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Administration of Justice

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ANNUAL REPORT 2019JUDICIAL CASELOADBankruptcy FilingsCENTRAL DISTRICT OF CALIFORNIABANKRUPTCY CASES FILED BY CHAPTER OF THE BANKRUPTCY CODECALENDAR YEARS 2008 - 2019Filings continued to increase for the fourth consecutive12-month period in the Central District of California. A totalof 38,148 bankruptcy cases were filed during the 12-monthperiod ending December 31, 2019, a 2.6 percent increase from37,192 filings received in 2018. Filings for chapter 13 continuedto decline, however, the rate has lessened significantlycompared to the rate of decline from 2017 to 2018.Chapter 7 filings increased by 5.2 percent to 29,972 filingsin 2019 and accounted for 78.6 percent of all petitions fileddistrict-wide. Chapter 7 filings also accounted for 78.4 percentof all business filings and 78.6 percent of all nonbusinessfilings in 2019.Chapter 11 filings decreased 16.0 percent to 389. Chapter 11cases, which typically require more judicial resources thancases that are filed under other chapters, accounted forapproximately 1.0 percent of all petitions filed in 2019, slightlylower than the percentage of chapter 11 filings in 2018. Over60 percent of all chapter 11 petitions were business cases.Chapter 13 filings decreased 5.5 percent to 7,786 filings in2019. Chapter 13 petitions accounted for 20.4 percent of allfilings in 2019, down from 22.1 percent in 2018. Chapter 13petitions also accounted for 21.0 percent of all nonbusinessfilings and 6.7 percent of all business filings in cent Change2018 - 20191Includes cases filed under chapters 9 and 15 of the bankruptcy codeCENTRAL DISTRICT OF CALIFORNIATotal Bankruptcy Filings By Division2019Santa Barbara2,2246%San Fernando Valley3,3

Award from Neighborhood Legal Services of Los Angeles County during the "10th Anniversary of the Central District's Woodland Hills Bankruptcy Self-Help Center" program. Judge Zurzolo was honored at the 2019 William J. Lasarow Awards Reception in Los Angeles. The interactive Statistics Dashboard went live on the Court's website.