A state-specific breakdown of how bankruptcy filings work in California, including the deadlines and court structure that apply.
Bankruptcy law itself is federal, but California determines a critical piece of the outcome: which of your assets are protected from creditors during the case.
When filing bankruptcy in California, you can choose between the state exemption list and the federal bankruptcy exemption list to determine which of your assets are protected from creditors. This single distinction can significantly change how much equity in your home or vehicle is protected, which is why exemption planning is often the single highest-leverage conversation to have with a bankruptcy attorney before filing.
Cases are filed in the U.S. Bankruptcy Court serving your federal district within California. Western states range from dense urban court systems to rural counties with limited court dates, which can affect case timelines.
This guide summarizes general California procedure — it isn't a substitute for advice from a licensed California attorney who has reviewed your specific situation.
Federal law requires an approved credit counseling course within 180 days before filing, regardless of chapter.
The means test compares your income to your state's median household income to determine which chapter you qualify for.
Homestead, vehicle, and personal property exemptions determine what you keep versus what a trustee can liquidate. In California, that means working from either the state or federal list.
This includes a full accounting of assets, debts, income, and expenses, filed under penalty of perjury.
A brief hearing where the trustee and any creditors can ask questions about your filing, typically the only in-person step in an otherwise routine case.
Most unsecured debt like credit cards and medical bills can be discharged. Certain obligations — including most student loans, recent tax debt, and child support — generally are not dischargeable.
Exemption laws are specifically designed to let filers keep necessary property in the large majority of cases, particularly in Chapter 13 where secured debts are repaid through a structured plan.
Chapter 7 remains for up to 10 years from the filing date; Chapter 13 remains for up to 7 years, though many filers see credit score recovery begin well before either period ends.
Filers in California use either the state exemption list or the federal exemption list to determine which assets -- home equity, vehicle value, personal property -- are protected from creditors during the case.