State litigation guide · California

Chapter 7 Bankruptcy Lawsuit in California

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People's Justice Research TeamUpdated August 28, 2026Fact-checked

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Filing venue

Where to File in California

California Chapter 7 Exemptions

California has opted out of the federal bankruptcy exemptions, so a California debtor may not elect the federal Section 522(d) set. Instead, California gives debtors a choice between two state systems under the Code of Civil Procedure, and the debtor must pick one — the two systems cannot be combined. (Source: Nolo, California Bankruptcy Exemptions.)

System 1 (CCP Section 704)

System 1 protects homestead equity up to $743,681.08 (the 2026 statewide maximum under CCP Section 704.730; the figure is indexed annually and the protected amount can be lower depending on county median home price), a motor vehicle up to $8,625 (CCP Section 704.010), and has no general wildcard. System 1 is generally best for debtors with significant home equity. (Source: Nolo, California Bankruptcy Exemptions.)

System 2 (CCP Section 703.140)

System 2 protects homestead equity of $36,750 (CCP Section 703.140(b)(1)), a motor vehicle up to $8,625 (CCP Section 703.140(b)(2)), and offers a wildcard of $1,950 plus any unused homestead amount — up to roughly $38,700 of any property if the homestead is not used (CCP Section 703.140(b)(5)). System 2 is generally best for debtors with little or no home equity. (Source: Nolo, California Bankruptcy Exemptions.)

Means Test: California Median Income

The Chapter 7 means test compares a debtor's six-month average gross income to the state median family income for the household size. For California, the U.S. Trustee median family income for a household of four is $139,071 (U.S. Trustee median family income, eff. April 1, 2026; lower household sizes use lower figures). A debtor below the applicable median is generally not presumed to be abusing Chapter 7; a debtor above the median completes the longer Form 122A-2 calculation. (Source: U.S. Trustee Program, justice.gov/ust.)

Which State's Exemptions Apply

Under the 730-day domicile rule (11 U.S.C. Section 522(b)(3)), a debtor must have been domiciled in California for the 730 days before filing to use California's exemptions; otherwise an earlier state's set or the federal exemptions may apply. Recently relocated debtors should confirm domicile before assuming California's figures control.

To compare your six-month income against the California median, use the Chapter 7 means test calculator at /tools/chapter-7-means-test-calculator. To estimate what property a California system might protect, use the bankruptcy exemption estimator at /tools/bankruptcy-exemption-estimator.

Exemption amounts change — verify current figures with an attorney. People's Justice is not a law firm and does not provide legal advice; we connect you with licensed attorneys, and we are not a government agency.

Filing Chapter 7 in your California city

Chapter 7 is filed in the federal bankruptcy court for your district, and which court and trustee handle your case depends on where you live in California. The city guides below cover local filing details, the assigned division, and what to expect in each area:

Chapter 7 in Los Angeles

Chapter 7 in San Diego

Chapter 7 in Riverside

Chapter 7 in Sacramento

Chapter 7 in Fresno

Chapter 7 in Vallejo

Costs, residency & process in California

Two distinct timing rules govern a California filing. First, the 730-day domicile rule (11 U.S.C. Section 522(b)(3)) controls which state's exemptions you may claim: you generally must have been domiciled in California for the 730 days before filing to use California's exemption systems, so debtors who recently relocated may be limited to an earlier state's set or the federal exemptions (uscourts.gov). Second, separate from exemptions, venue rules require that you have lived, been domiciled, or had your principal assets in the federal district for the greater part of the 91 days before filing in order to file in that California district (uscourts.gov). Recently moved debtors should confirm both before filing.

Eligibility also turns on prior filings and required courses. A debtor can receive a Chapter 7 discharge only once every 8 years, measured from the filing date of the prior Chapter 7 case (uscourts.gov). Before filing, you must complete an approved credit-counseling briefing within the 180 days before the petition, and after filing you must complete a debtor-education (financial management) course and file the certificate (Official Form 423) before the court will enter your discharge (uscourts.gov). Skipping either course can delay or block the discharge.

For a typical no-asset California case, the discharge is usually entered roughly 90 to 100 days after filing (uscourts.gov), with the 341 meeting of creditors generally held 20 to 40 days after the petition. The court filing fee is set by the federal courts, and many filers also pay attorney and required-course fees. For a full breakdown of California filing costs, see our California Chapter 7 cost guide. Figures and timelines change and depend on your facts — People's Justice is not a law firm and does not provide legal advice; we are not a government agency, and we can connect you with a licensed attorney to confirm the current numbers for your district.

FAQ

Frequently Asked Questions

12 QUESTIONS

The court filing fee for a Chapter 7 case is $338 (cacb.uscourts.gov). Courts may allow the fee to be paid in installments or, for filers below certain income thresholds, waived entirely. That fee is separate from any attorney fees. People's Justice is not a law firm and does not provide legal advice; we can connect you with a licensed attorney who can explain the full cost for your situation.

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