Southern California Chapter 7 Bankruptcy Lawyers

Who Is Eligible to File for Chapter 7 Bankruptcy in California?

Not everyone qualifies to file for Chapter 7 bankruptcy. Bankruptcy law uses what’s called a “means test” to determine eligibility, comparing your recent income to the median income limit set for a household of your size in your area. If your income falls below this limit, you typically pass the means test. Even if your income is above the limit, you may still qualify after certain expenses and circumstances are considered.

Because bankruptcy law is complex, Chapter 7 eligibility isn’t always straightforward—but we can help. Our experienced bankruptcy attorneys will review your financial situation and provide clear, honest guidance about whether Chapter 7 bankruptcy is the right option for you.

Additional Things to Know About Chapter 7 Bankruptcy

The Benefits of Filing Chapter 7 Bankruptcy 

The primary benefit of Chapter 7 bankruptcy is the discharge of qualifying debts. Once your Chapter 7 case successfully concludes, you are no longer legally obligated to repay most debts incurred before filing. This means creditors can no longer legally collect, sue, or even contact you about your discharged debts.

Another major benefit of filing for Chapter 7 bankruptcy is a protection known as the “automatic stay,” which takes effect immediately upon filing. This protection stops nearly all collection actions—including wage garnishments, bank levies, lawsuits, foreclosures, and repossessions—giving you the breathing room you need while your case moves forward. 

You CAN Keep Assets and File for Chapter 7 Bankruptcy

A common question for anyone considering bankruptcy is, “Can I keep my assets?” For most people, the answer is yes. Bankruptcy law allows you to exempt (protect) a limited amount of most assets, including equity in your home or vehicles, household goods, retirement accounts, and even some savings. 

Only in rare cases where you own assets that cannot be fully exempted (protected), those unprotected assets could be sold and the proceeds used to repay creditors. Fortunately, for most Chapter 7 filers, this does not happen. However, if you want to keep secured assets like a home or vehicle, you must continue making payments on your secured loans—even though your personal liability for secured debt can be discharged in Chapter 7 bankruptcy. 

What Chapter 7 Bankruptcy Cannot Discharge

While Chapter 7 bankruptcy can discharge most debts—including unsecured debts and your personal liability on secured debts—certain obligations are considered non-dischargeable under bankruptcy law. These non-dischargeable debts generally include:

• Most student loan debt
• Certain tax debts, such as recent or unfiled taxes
• Court-ordered obligations like child support, alimony, restitution, fines, penalties, etc.
• Debts incurred through fraud, deceit, or other illegal methods 

Fortunately, nearly all other types of debt may be discharged in bankruptcy. In some cases, even certain tax debts and penalties may qualify for discharge.

Our experienced bankruptcy attorneys can review your financial situation and help explain how your debts may be treated in Chapter 7—so you know exactly what to expect.  

Request a Consultation with Our Carlsbad Chapter 7 Bankruptcy Lawyers

Filing for Chapter 7 bankruptcy is a decisive step toward your own new chapter. Even though the process may feel intimidating, you don’t have to go through it alone. At New Chapter Law Group, our experienced bankruptcy attorneys are here to answer your questions, explain your options, and guide you through every step of the Chapter 7 bankruptcy process—with honesty and compassion. 

You can start receiving help for as little as $250 down. Plus, we offer upfront quotes and customizable payment plans to make working with our lawyers accessible and hassle-free.

Your path to a better financial future starts at New Chapter Law Group. Get in touch with us online or call (888) 296-4993 today.