Chapter 7 Bankruptcy in California: Liquidation

To file for Chapter 7 bankruptcy in California, the debtor files a petition with the bankruptcy court serving the area where the debtor lives (or where the business debtor operates the business, or where the debtor has most of their assets).

The debtor will file with the petition schedules of assets and liabilities, current income and expenditures, executory contracts and unexpired leases. A schedule of exempt assets is also filed. Bankruptcy forms can be purchased at a stationery store (they are not available from the court), or CA bankruptcy lawyers can help you prepare the forms.

Subject to change, the courts charge $200 in fees ($155 case filing fee, a $30 miscellaneous administrative fee, and a $15 lawyer surcharge).

Once the Chapter 7 bankruptcy petition is filed, most legal actions are “stayed”, and most creditors cannot start or continue lawsuits, garnish wages, or even make telephone calls demanding payment. (Creditors are notified of the bankruptcy filing by the court clerk).

A meeting of creditors is generally held 20 to 40 days after the petition is filed. The debtor must attend the meeting, and the creditors may ask questions regarding the debtor’s financial affairs and property.

At the conclusion of the process, the debtor is discharged. The debtor is no longer liable for discharged debts, and creditors are prevented from taking any action against the debtor.

Consult a California Bankruptcy Attorney About Personal Bankruptcy

The laws regarding discharge of Chapter 7 bankruptcy in California are complex, and we therefore recommend that you consult a California bankruptcy attorney prior to filing so that you fully understand the personal bankruptcy process.