Chapter 7 Bankruptcy

Chapter 7

Chapter 7 bankruptcy, also called straight liquidation bankruptcy, is the most common type of bankruptcy filed by individuals and businesses in the United States. There are many benefits to filing Chapter 7 bankruptcy as opposed to other types, such as the ability to exclude certain assets from liquidation.

Chapter 7 bankruptcy is an excellent option for individuals and businesses who have low to moderate-income and can pass the “means test.” The means test is a test that accounts for your income and expenses and determines how your income compares to the state average median income. If you make less than the median income in California, then you qualify to file Chapter 7 bankruptcy.

What Happens When I File
Chapter 7 Bankruptcy?

When you file Chapter 7 bankruptcy, a Bankruptcy Trustee is appointed. This Trustee examines your financial records, including income and expenses, and reviews the bankruptcy petition. The Trustee makes sure that your documents match the information sent to the court.

The process of Chapter 7 bankruptcy generally takes around four to six months. During this process, you can successfully eliminate debts, such as:

  •   Credit cards
  •   Medical bills
  •   Judgments

You cannot discharge certain debts, such as child support, alimony, or student loans. In order to discharge this debt, you will liquidate certain assets in order to pay creditors. This is done through the Trustee. But don’t worry – you won’t lose all of your possessions. California bankruptcy law protects debtors by listing assets as exempt or non-exempt. Most debtors only have exempt or secured assets, such as their home, auto loans, etc.

Why You Need a
Bankruptcy Attorney

Bankruptcy is a formal legal process, and it is crucial to follow the rules. Errors – even simple ones – can lead to your case being dismissed. A bankruptcy attorney will help you through every step of the bankruptcy process to make sure that your case is destined for success. At The Law Office of Erika Luna, our bankruptcy attorney has the knowledge and resources you need to reach your debt relief goals. 

To find out more about the means test and if Chapter 7 bankruptcy is right for you, contact The Law Office of Erika Luna. Let our bankruptcy attorney review your financial situation and help you determine the best way to find relief.

To our clients and community:

The Law Office of Erika Luna is committed to maintaining our employees’ safety and well-being and helping our clients do the same.


While we are closely monitoring the impact of the Coronavirus on our community, we want you to know that our telephone lines are open, and our staff is available to discuss your current case or to consult you on a potential one. 

We are currently offering a contactless bankruptcy process so people can file from the comfort of their homes. The entire process can be completed online and over phone/zoom calls. Clients can sign all paperwork electronically and attend the 341a hearing by phone. 

To arrange any in-person meetings, please call us for an appointment per the firm’s availability. We are taking substantial precautions to meet and exceed the CDC’s and state government’s guidelines for maximum protection. Please also note that your case, whether current or new, can be entirely managed remotely.

We hope you and your loved ones are safe and healthy during these challenging times. Thank you.

The Law Office of Erika Luna

A nuestros clientes y comunidad:

Nuestra firma está comprometida a mantener la seguridad y el bienestar de nuestros empleados y a ayudar a nuestros clientes a hacer lo mismo.

Mientras estamos monitoreando de cerca el impacto que el Coronavirus está teniendo en nuestra comunidad, queremos que sepa que las líneas telefónicas de nuestra oficina están abiertas y que nuestro personal está disponible para hablar sobre su caso o consultar sobre un caso posible.

Actualmente estamos ofreciendo un proceso de bancarrota sin contacto para que las personas puedan declararse desde la comodidad de sus hogares. Todo el proceso se puede completar en línea y por teléfono / llamadas con zoom. Los clientes pueden firmar todos los documentos electrónicamente y asistir a la audiencia 341a por teléfono.

Llámenos para solicitar una cita según la disponibilidad de la empresa. Estamos tomando precauciones importantes con nuestra oficina para cumplir y superar las recomendaciones de la CDC y del gobierno estatal para la máxima protección. Tenga en cuenta también que su caso, ya sea actual o nuevo, se puede manejar por completo de forma remota.

Esperamos que usted y sus seres queridos estén seguros y saludables durante estos tiempos difíciles. Gracias.

La oficina legal de Erika Luna