A California Chapter 7 Bankruptcy Attorney You Can Trust
When you consult with a California Chapter 7 bankruptcy attorney, the goal is simple: determine the most effective and legally sound path toward financial relief. At Tenina Law, we carefully evaluate your income, assets, and debts to identify whether Chapter 7 — or another chapter — is the most appropriate solution for your situation.
With decades of experience representing Californians in bankruptcy matters, our firm provides strategic guidance and practical solutions tailored to each client’s financial circumstances.
Chapter 7 Bankruptcy: A True Financial Reset
Chapter 7 is often referred to as a “Fresh Start” bankruptcy because it allows eligible individuals to discharge most unsecured debts. These typically include:
• Credit card balances
• Medical bills
• Personal loans
• Payday loans
• Deficiency balances after repossession
Unlike repayment-based bankruptcies, Chapter 7 focuses on eliminating qualifying unsecured debt, allowing you to move forward without years of structured payments.
The Myth About Losing Everything
One of the most common misconceptions about Chapter 7 is that you will lose all of your property. In reality, most Chapter 7 filers in California keep all of their essential assets.
California provides generous exemption laws that protect:
• Primary residences (subject to equity limits)
• Vehicles (within exemption limits)
• Retirement accounts
• Household goods
• Personal property
In many cases, Chapter 7 results in debt discharge without asset liquidation.
However, if you own significant non-exempt assets, Chapter 7 may not be the ideal strategy. Careful analysis is required before filing.
What Is Chapter 7 Bankruptcy?
Chapter 7 is the most commonly filed form of bankruptcy in the United States. It allows qualifying individuals to discharge unsecured debts typically within three to four months.
Unsecured debts include:
• Credit cards
• Medical expenses
• Personal loans
• Utility balances
• Certain judgments
Secured debts (like mortgages and car loans) are treated differently and may require continued payments if you wish to keep the property.
How Chapter 7 Bankruptcy Works
When you file Chapter 7:
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A bankruptcy petition is filed in federal court.
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An automatic stay immediately stops collection activity, lawsuits, wage garnishments, and foreclosures.
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A bankruptcy trustee is assigned to review your assets and financial disclosures.
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You attend a brief Section 341 meeting of creditors.
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If no objections are raised, qualifying debts are discharged.
Most Chapter 7 cases in California are “no-asset” cases, meaning no property is sold.
The Chapter 7 Means Test in California
Eligibility for Chapter 7 is determined by the “means test,” which compares your income to the median income for a household of your size in California.
If your income falls below the median, you typically qualify.
If your income exceeds the median, further calculations are performed to determine disposable income after allowable expenses. Many individuals above the median may still qualify depending on expenses and debt structure.
Median income figures are updated regularly, so a current evaluation is essential before making assumptions about eligibility.
When Chapter 7 May Not Be Ideal
Chapter 7 may not be appropriate if:
• You are behind on mortgage payments and want to save your home
• You have significant non-exempt equity in assets
• You do not qualify under the means test
• You need time to catch up on secured debts
In these situations, Chapter 13 bankruptcy may offer better protection through a structured repayment plan.
Alternatives to Chapter 7
Depending on your financial goals, alternatives may include:
• Chapter 13 bankruptcy
• Chapter 11 (for higher debt individuals or businesses)
• Negotiated settlements
• Debt restructuring strategies
Each option carries different consequences for assets, credit, and repayment obligations.
The Importance of Legal Guidance
Bankruptcy law is federal, but exemptions and procedural rules vary by state and district. Filing errors can result in dismissal, loss of protection, or denial of discharge.
An experienced bankruptcy attorney can:
• Analyze eligibility under the means test
• Protect exempt property
• Ensure accurate disclosures
• Represent you at the creditor meeting
• Structure the filing to minimize risk
Is Chapter 7 Right for You?
If you are overwhelmed by unsecured debt and seeking a lawful path toward financial stability, Chapter 7 may provide relief. However, every case is unique.
A consultation allows you to understand:
• Whether you qualify
• What property you can protect
• How long will the process take
• Whether another chapter is more advantageous