You may have experienced a financial hardship and now are deciding whether to file bankruptcy in California. We are sorry to hear that you are needing to read this article right now, but our goal is to explain how everything works, so you can decide whether bankruptcy is right for you. Here’s what we’ll cover:
- Filing Bankruptcy in California
- Chapter 7 vs Chapter 13 in California
- Chapter 7 Bankruptcy California
- Chapter 13 Bankruptcy California
- Cost of Chapter 7 and Chapter 13 in California
- California Bankruptcy Assistance
- California District, Court, And Trustee Information
- Alternatives to Bankruptcy in California
Filing Bankruptcy in California
You’ll notice from the table of the contents that we focus specifically on Chapter 7 and Chapter 13 bankruptcy. Why? Because these two types of bankruptcy are the most common bankruptcy in America (source). There are other types such as the Chapter 11 and Chapter 11 subchapter 5 bankruptcies, but these are far less common for consumers (source).
Chapter 7 bankruptcy is also known as the liquidation bankruptcy. Chapter 13 bankruptcy is also known as wage earner’s plan. We will cover these in greater detail
California Bankruptcy Filing Process
The bankruptcy filing process in California is similar to other states. Generally, the process is as follows for Chapter 7 bankruptcy:
- Understand bankruptcy qualification
- Decide whether to file Chapter 7 or Chapter 13
- Decide whether to hire an attorney
- Take the Credit Counseling Course
- File Bankruptcy Petition and Other Forms
- California trustee is assigned to the case
- Attend 341 Meeting of Creditors (California court locations below)
- Take Second Mandatory Debt Education Course
- Receive Bankruptcy Discharge
Chapter 7 vs Chapter 13 in California
Chapter 7 bankruptcy: In Chapter 7, you are at risk of your nonexempt property being sold and used to pay off debts. It’s generally meant for those who cannot afford to pay little to any of your debt. It’s often less expensive than a Chapter 13 bankruptcy, and you can receive a discharge within 120 days. It stays on your credit report for 10 years.
Chapter 13: In Chapter 13, you reorganize your debts similar to a debt settlement program. Your property above the exemption is often not sold as you may be able to protect your assets. It’s often more expensive than a Chapter 7 bankruptcy, and you generally will receive a discharge in 3 or 5 years. It stays on your credit report for 7 years.
When your debt is discharged, this means that you are not required to pay that debt back.
Chapter 7 bankruptcy California
As Chapter 7 is the most common consumer bankruptcy filing, we will cover this bankruptcy first. In order to file Chapter 7 bankruptcy, you have to go through means-testing. The means test was added to the Bankruptcy Code in 2005 to prevent bankruptcy fraud. The income requirement for California helps ensure that a person with a sufficient income to pay back some of the debts may file a Chapter 13 instead of Chapter 7.
California bankruptcy means test
The first part of the means test is to calculate your current monthly income. A California bankruptcy means test calculator can help you estimate whether you qualify for a Chapter 7 below or above the median, which is to say that you may qualify for a Chapter 7 even if your income exceeds the median in California, which is why a means test calculator may help.
If you want to do a ballpark estimate, you can estimate your current monthly income by taking the last 6 months of your income and dividing by 6. You will then be able to compare that figure to the California means testing data for cases filed on or after May 1, 2020. You would add $9,000 to the annual income for any individuals in the household greater than 9 people.
Means testing for California
| # of People | Annual Income |
|---|---|
| 1 | $60,360 |
| 2 | $79,271 |
| 3 | $88,235 |
| 4 | $101,315 |
| 5 | $110,315 |
| 6 | $119,315 |
| 7 | $128,315 |
| 8 | $137,315 |
| 9 | $146,315 |
California bankruptcy exemptions
We will cover California bankruptcy exemptions next because you may qualify for a Chapter 7 bankruptcy, but wonder whether they are going to come over and try to sell all your assets.
Firstly, in Chapter 7, you may be worried about losing your vehicle (non-luxury). Often a vehicle can be reinstated with a car payment in Chapter 7 bankruptcy in California. Here’s a link to the California bankruptcy exemptions.
It’s important to note that California does not also utilize the federal exemptions.
Please also note that you may want to check the California government website for a complete list of California bankruptcy exemptions and up to date information.
Chapter 13 bankruptcy California
Chapter 13 bankruptcy California is a payment plan bankruptcy where your debts are reorganized via the bankruptcy court, often in a 3 or 5-year payment plan. One of the most important questions is determining your monthly plan payment. Once you have a sense of your plan payment, you compare that payment to your current monthly obligations to see whether you may afford Chapter 13 bankruptcy. Debt settlement is often an alternative to a Chapter 13 bankruptcy. For a deep dive on Chapter 13 bankruptcy, you may want to check out the article titled Chapter 13 California
Chapter 13 Payment
One of the most important things for a Chapter 13 bankruptcy is determining whether you can afford the Chapter 13 plan payment and comparing it to your current monthly obligations. There are various bankruptcy forms that can be used to estimate your Chapter 13 plan payment, but we found the easiest way is to use the California Chapter 13 Calculator which uses bankruptcy forms to help estimate plan payment.
California Bankruptcy Assistance
You may be wondering what sort of bankruptcy assistance is available in California. Let’s go through some of the options.
California Legal Assistance:
You may be considering filing bankruptcy in California and wondering what sort of legal assistance is available. You may want to check out any of the following options:
Cost of Chapter 7 and Chapter 13 in California
Any important question that you are probably asking yourself is what is the cost of attorney fees, filing fees and whatever other costs are associated with bankruptcy.
- Attorney Fee: Often different cities and counties in California will have different attorney costs, including variability of cost based on experience. You may want to check out a California bankruptcy cost calculator to estimate the cost for your zip code.
- Filing, Admin and/or trustee surcharge fee: The fee for Chapter 7 is $335 and the fee for Chapter 13 is $310 (source).
California Districts and Courts
Northern District
- Phillip Burton Federal Building
& United States Courthouse
450 Golden Gate Avenue
San Francisco, CA 94102 - Ronald V. Dellums Federal Building
& United States Courthouse
1301 Clay Street
Oakland, CA 94612 - Robert F. Peckham Federal Building
& United States Courthouse
280 South 1st Street, Room 2112
San Jose, CA 95113 - United States Courthouse
3140 Boeing Avenue
McKinleyville, CA 95519
Eastern
- Robert E. Coyle United States Courthouse, 2500 Tulare Street, Fresno, 93721.
- Robert T. Matsui United States Courthouse, 501 “I” Street, Sacramento, 95814
Central
- 350 W 1st Street, Suite 4311
Los Angeles, CA 90012-4565 - 255 East Temple Street
Los Angeles, CA 90012-3332 - 3470 Twelfth Street
Riverside, CA 92501-3801 - 411 West 4th Street, Room 1053
Santa Ana, CA 92701-4516
Southern
- 221 West Broadway
San Diego, CA 92101 - 333 West Broadway
San Diego, CA 92101 - 2003 W. Adams Ave, Ste 220
El Centro, CA 92243
California Bankruptcy Trustees
Here are the Chapter 7 Bankruptcy Trustees in California and the Chapter 13 Bankruptcy trustees in California.
Chapter 7 Trustee(s) in California
| District | Name | Phone |
|---|---|---|
| Central | Karl T. Anderson | (760) 778-4889 |
| Central | Wesley H. Avery | (626) 395-7576 |
| Central | Lynda T. Bui | (949) 340-3400 |
| Central | Thomas H. Casey | (949) 766-8787 |
| Central | Arturo M. Cisneros | (951) 328-3124 |
| Central | Charles W. Daff | (657) 218-4800 |
| Central | Carolyn Anne Dye | (213) 368-5000 |
| Central | Howard Marc Ehrenberg | (213) 626-2311 |
| Central | Jeremy W. Faith | (818) 705-2777 |
| Central | Todd A. Frealy | (951) 784-4122 |
| Central | Jeffrey I. Golden | (714) 966-1000 |
| Central | Amy L. Goldman | (213) 250-1800 |
| Central | Rosendo Gonzalez | (213) 452-0071 |
| Central | David M. Goodrich | (714) 966-1000 |
| Central | David Keith Gottlieb | (818) 539-7720 |
| Central | Howard B. Grobstein | (951) 234-0951 |
| Central | Weneta M. A. Kosmala | (714) 708-8190 |
| Central | Brad D. Krasnoff | (310) 277-0077 |
| Central | Heide C. Kurtz | (310) 832-3604 |
| Central | Sam S. Leslie | (213) 368-5000 |
| Central | Richard A. Marshack | (949) 333-7777 |
| Central | Peter J. Mastan | (213) 335-7738 |
| Central | Sandra K. McBeth | (805) 464-2959 |
| Central | John J. Menchaca | (213) 683-3317 |
| Central | Elissa D. Miller | (213) 626-2311 |
| Central | Jerry Namba | (805) 922-2575 |
| Central | Karen S. Naylor | (949) 748-7936 |
| Central | John P. Pringle | (323) 724-3117 |
| Central | Jason M. Rund | (310) 640-1200 |
| Central | David Seror | (818) 827-9200 |
| Central | Larry D. Simons | (951) 686-6300 |
| Central | Steven M. Speier | (949) 561-3749 |
| Central | Diane C. Weil | (818) 946-1270 |
| Central | Robert S. Whitmore | (951) 276-9292 |
| Central | Edward M. Wolkowitz | (310) 229-3367 |
| Central | Timothy J. Yoo | (310) 229-3361 |
| Central | Nancy J. Zamora | (213) 488-9411 |
| Eastern | Sheri L. Carello | (916) 444-8149 |
| Eastern | Michael P. Dacquisto | (530) 244-6267 |
| Eastern | Irma C. Edmonds | (559) 221-2233 |
| Eastern | Gary R. Farrar | (209) 551-1962 |
| Eastern | Peter L. Fear | (559) 464-5295 |
| Eastern | Alan S. Fukushima | (916) 449-3949 |
| Eastern | J. Michael Hopper | (530) 757-2033 |
| Eastern | Kimberly J. Husted | (916) 635-1939 |
| Eastern | Michael D. McGranahan | (209) 524-1782 |
| Eastern | Eric J. Nims | (209) 887-3585 |
| Eastern | Geoffrey M. Richards | (916) 288-8365 |
| Eastern | James E. Salven | (559) 230-1095 |
| Eastern | Susan K. Smith | (916) 833-2936 |
| Eastern | Henry M. Spacone | (916) 481-3150 |
| Eastern | Jeffrey M. Vetter | (661) 809-6806 |
| Eastern | Douglas M. Whatley | (916) 358-9345 |
| Northern | Kari Bowyer | (408) 641-1327 |
| Northern | Lois I. Brady | (510) 452-6498 |
| Northern | Linda S. Green | (707) 575-6112 |
| Northern | Frode “Fred” S. Hjelmeset | (650) 386-5634 |
| Northern | Timothy W. Hoffman | (707) 874-2066 |
| Northern | Janina M. Hoskins | (707) 569-9508 |
| Northern | Doris A. Kaelin | (831) 600-8093 |
| Northern | Michael G. Kasolas | (415) 504-1926 |
| Northern | Sarah L. Little | (510) 485-0740 |
| Northern | Paul J. Mansdorf | (510) 526-5993 |
| Northern | E. Lynn Schoenmann | (415) 569-4390 |
| Northern | Marlene G. Weinstein | (925) 482-8982 |
| Southern | Leonard J. Ackerman | (619) 906-5593 |
| Southern | Christopher R. Barclay | (619) 255-1529 |
| Southern | Gerald Holt Davis | (619) 400-9997 |
| Southern | Leslie T. Gladstone | (858) 454-9887 |
| Southern | James L. Kennedy | (858) 451-8859 |
| Southern | Ronald E. Stadtmueller | (858) 564-9310 |
Chapter 13 Trustee(s) in California
| District | Name | Phone |
|---|---|---|
| Central | Amrane Cohen | (714) 621-0200 |
| Central | Nancy K. Curry | (213) 689-3014 |
| Central | Rodney A. Danielson | (951) 826-8000 |
| Central | Kathy Anderson Dockery | (213) 996-4400 |
| Central | Elizabeth F. Rojas | (818) 933-5700 |
| Eastern | David P. Cusick | (916) 856-8000 |
| Eastern | Russell D. Greer | (209) 576-1954 |
| Eastern | Michael Meyer | (559) 275-9512 |
| Northern | Martha G. Bronitsky | (510) 266-5580 |
| Northern | David E. Burchard | (650) 345-7801 |
| Northern | Devin Derham-Burk | (408) 354-4413 |
| Southern | Thomas H. Billingslea, Jr. | (619) 233-7525 |
| Southern | David L. Skelton | (619) 338-4006 |
Alternatives to Bankruptcy in California
You may be reading through this and wondering what are the alternatives to Chapter 7 or Chapter 13 bankruptcy. The most common alternatives are debt management, debt settlement, and debt payoff planning. Each of these options have pros and cons, so doing your due diligence is important. You can also feel free to reach out to us if you have any questions whatsoever.