Chapter 7 Bankruptcy
Bankruptcy for $O Down - Easy Payment Plans*
Chapter 7 is the most common form of bankruptcy — it eliminates most unsecured debt quickly so you can get back on your feet.
Get Your Free Debt EvaluationWhat Is Chapter 7 Bankruptcy?
Chapter 7 bankruptcy allows individuals to discharge most unsecured debts — including credit card balances, medical bills, personal loans, and utility arrears — giving you a true fresh start.
When you file for Chapter 7, an automatic stay immediately goes into effect, stopping all collection calls, lawsuits, wage garnishments, and creditor harassment. We begin communicating with your creditors immediately so you don't have to.
At Ashley Bankruptcy Lawyers, we guide you through every step of the process — from your free initial consultation to your discharge — so you never feel alone.
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Do You Qualify for Chapter 7?
To file Chapter 7, you must pass the California Means Test, which compares your income to the state median. You may qualify if:
- Your income is below California's median income for your household size
- You have significant unsecured debt (credit cards, medical bills, personal loans)
- You have not filed Chapter 7 in the past 8 years
Benefits of Chapter 7
Debt Elimination
Most unsecured debts are completely discharged — you owe nothing on them after your case closes.
Immediate Automatic Stay
All collection activity stops the moment you file — calls, lawsuits, garnishments, and repossessions halt immediately.
Fast Process
Chapter 7 cases move quickly, giving you a fresh start faster than any other bankruptcy option.
Keep Your Exempt Property
California exemptions protect your home equity, car, retirement accounts, household goods, and more.
No Repayment Plan
Unlike Chapter 13, Chapter 7 does not require a multi-year repayment plan. Qualifying debts are simply discharged.
Rebuild Your Credit
After discharge, you can begin rebuilding your credit immediately. Many clients see significant improvement within 1–2 years.
The Chapter 7 Process
- 1
Free Debt Evaluation
We review your financial situation, debts, and assets by phone to determine if Chapter 7 is right for you — at no cost, no office visit required.
- 2
File Your Petition
We prepare and file all required documents with the bankruptcy court. The automatic stay takes effect immediately.
- 3
Meeting of Creditors
You attend a brief 341 meeting with the bankruptcy trustee — typically just 5–10 minutes and conducted by Zoom. We'll be right there with you every step of the way.
- 4
Discharge
Within 60–90 days of the 341 meeting, your eligible debts are discharged. Your fresh start begins.
Frequently Asked Questions
Will I lose my home or car?
Not necessarily. California's bankruptcy exemptions protect significant equity in your home and vehicle. We'll review your specific situation to ensure your assets are protected.
What debts cannot be discharged?
Student loans, most taxes, child support, alimony, and debts from fraud generally cannot be discharged in Chapter 7. We'll review your specific debts during your free consultation.
How will bankruptcy affect my credit?
Chapter 7 stays on your credit report for 10 years, but many clients begin rebuilding credit quickly after discharge. The relief from debt often outweighs the temporary credit impact.
Do I need to go to court?
You will attend one brief 341 meeting with the trustee, which is conducted by Zoom — typically just 5–10 minutes. You do not appear before a judge in most Chapter 7 cases. We handle everything else and will be with you every step of the way.
Ready to Eliminate Your Debt?
Call us today for a free case evaluation. Our experienced attorneys will review your situation and explain all your options — with no obligation.