California Bankruptcy

Bankruptcy is a legal process that helps individuals or businesses (debtors) who owe money (debtors) get relief from debts they cannot pay. The process also assists individuals who are owed money (creditors) in getting paid from the debtor's assets. California has opted out of the federal exemption scheme, so debtors must choose one of two state systems.

How to File Bankruptcy in California

A focused checklist will help you to keep your California case on track from counseling to discharge. First, you must complete a court-approved credit-counseling course within 180 days before filing. Gather all your documents, including recent tax returns, six months of income proofs, bank statements, a full asset/debt list, and any lawsuits.

Choose a chapter (7, 11, 12, or 13) and select 703 or 704 exemptions based on your assets. File your petition and schedules in the correct California bankruptcy district yourself or through an attorney. Proceed to pay the filing fee or request installments/waiver (typically for new-case fees; check local schedules for updated information).

You must attend the 341 meeting of creditors and provide ID and all requested documents. After filing, complete the debtor-education course and monitor trustee and court notices until discharge or plan confirmation is complete.

California Bankruptcy Types: Chapter 7, Chapter 11, Chapter 12 & Chapter 13

There are four common kinds of bankruptcy cases in California, and you can pick any chapter that fits your goals.

Chapter 7 (liquidation)

This is a common form of bankruptcy for low-asset, lower-income individuals. The court sells all your non-exempt assets to pay your creditors. A 704 exemption may maximize homestead protection, while 703 is useful for cash and miscellaneous property.

Chapter 11 (reorganization)

This chapter is usually for large businesses because of its complexity, but individuals can file, too. It allows the debtor to keep their assets and continue to operate the business while working on a plan to repay their creditors.

Chapter 12

This is a simplified reorganization for family farmers, where the debtors keep their assets and work out a repayment plan with the creditors.

Chapter 13 (repayment plan)

It is a repayment plan for individuals with regular income. If you earn regularly, you may pay your debts off over a 3- to 5-year period, and you keep your property.

Step in Filing For Bankruptcy in California

You may make use of this simple list to organize your tasks and deadlines.

• Complete credit counseling before filing
• Gather all required financial records
• Choose the chapter and 703 vs. 704 exemptions
• File your petitions and schedules
• Pay the filing fee or request waiver/installment.
• Attend the 341 meeting
• Finish debtor-education course
• Respond to all trustee/court communications until discharge or plan completion

California Bankruptcy Courts & Access to Records

California has four bankruptcy districts where you can file your case.

Court Locations

• The Northern District of California: The court district has a main headquarters at San Francisco with divisional offices in Oakland, San Jose, and Santa Rosa. The main courthouse of the United States Bankruptcy Court for the Northern District of California is:

• The Central District of California: Presently, the District holds court in Los Angeles (main headquarters), Riverside, Santa Ana, San Fernando Valley, and Northern. The court offers an electronic self-representation (eSR) to eligible individuals. Individuals may contact the main courthouse at:

• The Eastern District of California: The main court is currently in Sacramento, with another divisional office in Fresno (the Modesto office is now closed). The court provides an e-filing option, and you can access the main office at:

• The Southern District of California: The court is located in San Diego. You may contact the courthouse between 8:30 am and 4:30 pm at:

Record Access

All the bankruptcy courts in the Northern, Central, Middle, and Southern Districts of California allow the public to access court records. The PACER Case Locator enables individuals to view records online for a $0.10 access fee.

Case information is available to individuals through the court's automated Voice Case Information System (VCIS) at (866) 222-8029 (toll-free). This system is always available, and you may need a case number, full name, or a Social Security Number to obtain case information. You may get details that include the case number, name of debtor, date the case was filed, debtor’s attorney, and other information.

You may obtain certified or paper copies of bankruptcy documents in person, by mail, or by public terminals from the clerk‘s office. You may retrieve archived cases (closed for one year or more) from the National Archives and Records Administration (NARA) in Perris, California.