San Diego Chapter 7 Bankruptcy Attorney
Have you recently lost your job, making it difficult to keep up with mounting bills and growing debt? Are you avoiding calls from irate creditors, unsure of how to ever get back on track financially? It's important to know that there is absolutely no shame in seeking help, especially when legal protections are available to give you a fresh start. Chapter 7 bankruptcy is the most common form of bankruptcy and may be exactly what you need to relieve the financial pressure by eliminating personal liability on your debts. For many individuals, filing for Chapter 7 can offer the relief needed to rebuild and move forward. In most cases, individual debtors are granted a discharge of their debts in roughly 90 days, allowing them to move on with their lives without the constant burden of debt hanging over them.
However, not everyone is eligible for Chapter 7 bankruptcy. For example, business entities and corporations do not qualify for a discharge under Chapter 7. Additionally, some individuals may not meet the required criteria for this type of bankruptcy, and a detailed financial examination is essential to determine whether you qualify. For those who do not meet the eligibility requirements for Chapter 7, Chapter 13 bankruptcy may be a viable alternative that can still provide significant relief through a repayment plan.
If you are considering filing for Chapter 7 bankruptcy but are unsure where to begin or what your options are, the Law Office of Thomas B. Gorrill is here to help. Our attorney offers personalized, compassionate guidance from the start of your case through its resolution. We understand that going through financial struggles can be incredibly stressful, and we are committed to providing you with the knowledge, expertise, and support you need to make the process as smooth and stress-free as possible. With decades of experience, we will work with you to help you understand your options and choose the best path forward to a debt-free future.
Schedule a virtual or in-person initial consultation with our San Diego Chapter 7 attorney by contacting us online or calling (619) 815-2761.
Chapter 7 Eligibility
Filing for any form of bankruptcy is a major decision that requires a careful review of your financial circumstances. It is not right for all situations, and not everyone will qualify for Chapter 7 relief.
Chapter 7 bankruptcy is designed for people who currently have very little disposable income. Disposable income refers to the amount you have left over each month after subtracting allowable expenses (like housing, food, and transportation costs) from your gross income. If you lose your job and do not have a steady flow of income, you probably do not have disposable income by default. If you were forced to take a low-paying job and are barely keeping up with your basic expenses, you probably do not have much (or any) disposable income. In these instances, Chapter 7 may be the path forward.
To be certain Chapter 7 is a viable option, you may need to complete a means test. Start by comparing your current income to California’s average median income for your household size. If you make less than this number, you qualify and do not need to make any additional calculations. If you make more, subtract allowable expenses and assess your level of disposable income.
Chapter 7 bankruptcy is not designed for people with a consistent, healthy income. If you have considerable disposable income but are still overwhelmed by debt, you will likely need to look at Chapter 13 bankruptcy as an alternative.
Dedicated to Your Financial Recovery Our Promise to You
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Compassionate SupportOur team understands the stress of financial hardship and is here to offer compassionate, judgment-free assistance to help you rebuild.
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Efficient, Stress-Free ProcessWe handle the paperwork and legal complexities for you, making the path to financial relief as smooth and stress-free as possible.
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Experienced Guidance You Can TrustWith over 40 years of helping clients resolve financial challenges, we provide knowledgeable support every step of the way.
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Personalized Debt SolutionsWe tailor bankruptcy strategies to meet your unique financial needs, guiding you toward a fresh start with confidence and clarity.
How to File for Chapter 7 Bankruptcy in California
To begin, the debtor files a petition in the district where they reside or where the main business office or business assets are. A married couple may file together or individually, depending on the type of debts.
Filing the petition triggers an “automatic stay,” which halts most creditor proceedings, such as a lawsuit, against the debtor and their property. Additionally, the court will appoint a trustee to manage the process.
What Happens to Property & Debts During Chapter 7?
In most individual Chapter 7 cases, the debtor will keep some of their important assets by claiming “exemptions.” Federal or state bankruptcy law determines these, and California is among the most favorable states in terms of offering exemptions.
30 days after filing, the bankruptcy trustee will hold a creditor meeting. At this meeting, the trustee will question the debtor and verify the information provided in their bankruptcy documents. They will also identify assets that may not be exempt. The trustee can then sell nonexempt assets and distribute any proceeds to creditors according to priority (for example, child support is given priority over creditors of general unsecured debts). Secured creditors normally retain the right to seize their collateral after the court grants a discharge, which can influence which assets the debtor seeks to keep.
Finally, the court clerk will issue a discharge notice, a copy of which is then mailed to both the debtor and the creditors that were listed in the bankruptcy papers. Most individual Chapter 7 cases end with a discharge of debts, however, some types of debts are not dischargeable. Remaining financial obligations could include alimony, child support, taxes, student loans, and more. Bankruptcy also does not extinguish property liens.