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If your debt has outgrown what you can realistically pay, Chapter 7 bankruptcy can wipe the slate clean — legally, and faster than most people expect. This guide walks through who qualifies, what debt it erases, what you get to keep, and exactly what the process looks like in California.
In this guide
What is Chapter 7 bankruptcy?
Chapter 7 is the "fresh start" chapter of federal bankruptcy law. In exchange for a brief, court-supervised process, it discharges (legally erases) most unsecured debt — meaning you no longer owe it, and creditors can never try to collect it again. The moment your case is filed, an automatic stay takes effect: by federal law, collection calls, lawsuits, and wage garnishment must stop immediately. Most Chapter 7 cases are completely finished in about three to four months.
Do you qualify for Chapter 7?
Eligibility comes down to the means test, which compares your household income to the median income for a same-size household in California. If your income is below the California median, you generally qualify automatically. If it's above, a second calculation looks at your disposable income. Most people who feel buried in debt do qualify.
The means test has real nuance — household size, the six-month income lookback, and allowable expenses all matter. Walk through the California means test step by step →
What debt does Chapter 7 wipe out?
Chapter 7 is built to eliminate unsecured debt. A few categories are not dischargeable — here's the honest breakdown:
Usually erased
- Credit card balances
- Medical bills
- Personal & payday loans
- Most lawsuit judgments
- Old utility & phone bills
- Repossession/foreclosure deficiencies
Generally not erased
- Most student loans
- Child & spousal support
- Most recent taxes
- Court fines & restitution
- Debts from fraud
Not sure which bucket your debts fall into? That's exactly what your free consultation is for. Credit card debt and medical debt are two of the most common — and most dischargeable.
What property can you keep?
This is the question people fear most — and the answer surprises most filers: in the vast majority of California Chapter 7 cases, you keep everything you own. California's bankruptcy exemptions protect your home equity, a vehicle, household goods, tools of your trade, and retirement accounts up to generous limits. We review your assets against the exemptions before filing, so there are no surprises.
- Your home — California's homestead exemption protects a substantial amount of equity
- A car, up to the vehicle exemption
- Household furnishings, clothing, and personal items
- Retirement accounts (401(k), IRA, pension) — typically fully protected
See exactly what California exemptions protect →
The Chapter 7 process, step by step
Free consultation
We review your debts, income, and assets, confirm you qualify, and give you a flat-fee quote — no obligation.
We prepare & file your case
You start for $99. We prepare every document and file with the court. The automatic stay stops collection immediately.
The 341 meeting of creditors
A short, routine hearing with the trustee — now commonly by video. We prepare you and are with you throughout. Find your local court →
Your discharge
Roughly 60–90 days after the 341 meeting, the court discharges your eligible debt. You're done — with a genuine fresh start.
How much does Chapter 7 cost?
With Chini Law, you'll know your complete, flat fee before you sign anything — no hourly billing, no surprise invoices. You can get started for just $99, with payment plans designed for people in financial difficulty. Your free consultation includes a clear, written quote. Request your free consultation →
Chapter 7 FAQ
Will Chapter 7 stop wage garnishment and creditor calls?
Will I lose my house or car?
How long does Chapter 7 take?
Will bankruptcy ruin my credit forever?
Ron has practiced bankruptcy law from his Irvine office since 2009 and has helped 500+ Southern California families get a fresh start. You work directly with him — not a paralegal or a call center.
Learn more about Ron Chini →