Chapter 7 Bankruptcy in Los Angeles
Eliminate overwhelming debt and get a fresh financial start. Our experienced Los Angeles Chapter 7 bankruptcy attorneys will guide you through the process.
Free consultation • No upfront fees • Experienced with LA courts
Learn if Chapter 7 is right for your situation
What is Chapter 7 Bankruptcy?
Chapter 7 bankruptcy, also known as "liquidation bankruptcy," allows individuals and businesses to eliminate most unsecured debts without a repayment plan. It's the most common form of bankruptcy in Los Angeles and throughout California.
In a Chapter 7 case, a bankruptcy trustee may sell non-exempt assets to pay creditors, but most people keep all their property due to California's generous exemption laws.
The entire process typically takes 3-4 months from filing to discharge, making it the fastest way to eliminate debt and get a fresh start.
Chapter 7 cases in Los Angeles are filed in the U.S. Bankruptcy Court for the Central District of California.
Court Address: 255 E Temple St, Los Angeles, CA 90012
Filing Fee: $338 (may be waived for low-income filers)
Median Income (2024):
- • 1 person: $70,450
- • 2 people: $87,850
- • 3 people: $110,300
- • 4 people: $133,400
Who Qualifies for Chapter 7 in Los Angeles?
Qualification Requirements:
- Pass the means test (income below median for household size)
- Have not filed Chapter 7 in the past 8 years
- Complete credit counseling course
- Primarily have unsecured debts
- Cannot afford a Chapter 13 repayment plan
The Means Test:
The means test compares your average monthly income over the past 6 months to the median income for your household size in Los Angeles County.
If your income is below the median, you automatically qualify. If above, we'll calculate your disposable income to determine eligibility.
Chapter 7 Pros and Cons
- Eliminate most unsecured debts (credit cards, medical bills, personal loans)
- Quick process - typically 3-4 months
- Keep essential assets (home, car, retirement accounts)
- Stop creditor harassment immediately
- No repayment plan required
- Fresh financial start
- May lose non-exempt assets
- Stays on credit report for 10 years
- Income must qualify under means test
- Cannot discharge certain debts (student loans, recent taxes)
- May affect credit score initially
Ready to Get Your Fresh Start?
Don't let debt control your life. Our experienced Los Angeles bankruptcy attorneys are here to help you explore your options and find the best path forward.