Service Details

What is Chapter 7 Bankruptcy?

Chapter 7 bankruptcy, often referred to as "liquidation bankruptcy," is designed to give individuals a fresh financial start by eliminating unsecured debts like credit cards, medical bills, and personal loans. Our experienced attorneys serve clients throughout California, Texas, and Illinois, with remote consultations available for qualified cases.

In a Chapter 7 case, a court-appointed trustee may sell certain property to pay creditors, but most personal property is protected by exemptions. The entire process typically takes 3-4 months from filing to discharge. If you need to keep your property while repaying debts, consider Chapter 13 bankruptcy instead.

Key Benefits

• Quick debt relief - typically 3-4 months from filing to discharge
• Eliminates unsecured debts
• Immediate "automatic stay" stops collections, lawsuits, and garnishments
• You won't lose any property unless you want to
• No minimum debt amount required to file

The Chapter 7 Process

1. Credit counseling: Complete a pre-bankruptcy credit counseling course from an approved agency.
2. Filing the petition: We prepare and file your bankruptcy petition, schedules, and other required documents with the appropriate court in California, Texas, or Illinois.
3. Automatic stay: Upon filing, an automatic stay immediately stops most collection actions, including calls, letters, lawsuits, and wage garnishments.
4. Meeting of creditors: Approximately 30 days after filing, you'll attend a brief meeting with the trustee (and possibly your creditors, though they rarely attend).
5. Financial management course: Complete a post-filing financial management course.
6. Discharge: If there are no objections, you'll receive your discharge typically 60-90 days after the meeting of creditors.

How Much Does Chapter 7 Cost in Los Angeles?

Chapter 7 bankruptcy costs in Los Angeles include a federal court filing fee plus attorney fees. The court filing fee is set by the U.S. Bankruptcy Court for the Central District of California. Attorney fees depend on case complexity—simple cases with few creditors and no business interests typically cost less than cases involving property disputes, income issues, or creditor objections.

During your free consultation, we review your situation and provide a clear, written fee quote so you know exactly what to expect before moving forward. We also offer payment plans for qualified clients because we believe cost should not prevent you from getting relief.

Can You File Chapter 7 With No Money?

Yes. If you cannot afford the filing fee, the bankruptcy court may grant a fee waiver or allow you to pay in installments. Fee waivers are generally available to filers whose income is below 150% of the federal poverty guidelines. We can help you determine whether you qualify and prepare the necessary motion.

Attorney fees can also be handled through a payment plan in many cases. The most important first step is a free consultation, where we can explain your options and design a path forward that works with your budget. Filing Chapter 7 bankruptcy should not be out of reach just because money is tight.