Bankruptcy is a legal process that allows individuals or businesses overwhelmed by
debt to eliminate or restructure what they owe under the protection of the federal court.

Chapter 7 is a type of bankruptcy that clears away most debts like credit cards, medical bills, and personal loans. It gives you a fresh start. In most cases, you get to keep your home, car, and personal belongings because the law protects them. The process is quick, usually finished in about 4–6 months.

Chapter 13 is a repayment plan that helps you catch up on missed payments for things like your house or car. It stops foreclosure and repossession right away and gives you 3 to 5 years to pay back what you can afford. At the end of the plan, most remaining debts are wiped out.

Chapter 7 is a liquidation bankruptcy where most unsecured debts (like credit
cards or medical bills) are wiped out. In consumer cases, all or most assets are typically “exempt” (protected) and you keep everything.

Chapter 13 is a reorganization plan that immediately halts auto repossession and mortgage foreclosure, giving you up to five years to catch up on past-due payments. Most other types of debt can be discharged (forgiven) after making affordable payments for three to five years.

No. California has exemptions that allow you to keep essential property like your home,
car, retirement accounts, and personal belongings. We’ll help you use these laws to
protect your assets.

Chapter 7 cases typically take about 4 to close.

Chapter 13 cases span 3 to 5 years (based on your income bracket) but offer
different types of protection and benefits.

Yes. Filing for bankruptcy immediately triggers an “automatic stay,” which immediately stops creditor contact, plus lawsuits, garnishment, foreclosure, repossession, and most other types of creditor action.

No, definitely not. Many people begin rebuilding their credit within months and qualify for car loans or mortgages within a few years. In fact, your credit score may go up almost immediately after filing or discharge because you will no longer have the debts that negatively impact your credit score.

Not usually. Most clients never see a judge. Instead, you’ll attend a short meeting with a bankruptcy trustee called a “341 meeting.” It usually lasts 5–10 minutes, and creditors rarely show up. We’ll prepare you so you know exactly what to expect.

In most cases, no. Bankruptcy is public record, but employers and landlords don’t get notified unless they’re directly involved (like if you owe them money). Federal law also prohibits discrimination just because you filed.