Do I Qualify for Chapter 7 Bankruptcy in California?

When debt feels bigger than your paycheck — especially in the San Francisco Bay Area where everyday costs are high — it’s normal to wonder if Chapter 7 bankruptcy could finally give you a clean slate. Chapter 7 is often the fastest way to eliminate unsecured debt like credit cards and medical bills, and it can stop collection calls, lawsuits, garnishments, and bank levies the moment you file.

But the big question is: do you qualify?

Below is a clear, Bay Area–friendly guide to Chapter 7 eligibility in California, including the means test, common disqualifiers, and what property you’re allowed to keep. And throughout the process, The Law Office of Eric Gravel is here to help you understand your options and file with confidence.

What Chapter 7 Does (and Why People Choose It)

Chapter 7 is designed to give honest people who are overwhelmed by debt a real reset. In most cases, it can:

• Wipe out qualifying unsecured debts (credit cards, medical bills, personal loans, old utility balances)
• Stop creditor harassment immediately through the automatic stay
• Finish quickly — many cases wrap up in about 3–4 months
• Let many filers keep essential property through California exemptions

If your goal is a faster path to relief, Chapter 7 is often the first option to explore with The Law Office of Eric Gravel.

The Two Main Ways You Qualify for Chapter 7 in California

Eligibility usually comes down to the means test, which looks at your income and expenses.

1) Your income is below California’s median for your household size

The means test starts by comparing your average gross income over the last 6 months to California’s median income for a household your size. The U.S. Trustee Program updates these numbers twice a year.

Recent California median income figures (effective 2025) are roughly in this range for Chapter 7 screening:

• 1 person: about $77k/year
• 2 people: about $101k/year
• 3 people: about $114k/year
• 4 people: about $134k/year
  (These figures change periodically, so your attorney will confirm the exact current table for your filing date.)

If you’re under the median, you usually “pass” the first part of the means test and can file Chapter 7.

2) You’re above the median, but your expenses show you still qualify

If your income is over the median, you’re not automatically blocked. You move to part two of the means test, which subtracts allowed living expenses (housing, transportation, taxes, health insurance, child care, etc.) to see whether you have enough “disposable income” to repay debts. Many Bay Area residents still qualify after this step because necessary expenses here are high.

This is where having a careful legal review matters most. The Law Office of Eric Gravel will calculate your means test properly and explain your best path forward.

What If I Don’t Pass the Means Test?

If Chapter 7 isn’t available, Chapter 13 may still provide strong relief. Chapter 13 sets up a 3–5 year repayment plan that can stop foreclosure and repossession while helping you catch up. Passing the means test is not required for Chapter 13.

A lot of Bay Area clients start by asking about Chapter 7 and end up choosing Chapter 13 because it better protects a home, car, or other priorities. The right chapter depends on your goals — not just your income.

Property Rules: Can I Keep My Home and Car?

One fear people have is “Will I lose everything?” In California, most Chapter 7 filers keep what they need to live and work because of exemptions. California has two exemption systems (often called the 703 and 704 systems). You choose the one that protects more of your property.

Depending on your situation, exemptions may protect:

• A home (through the California homestead exemption)
• One or more vehicles up to certain limits
• Retirement accounts
• Household goods and clothing
• Tools you need for your job
• A “wildcard” amount that can cover cash or other property

Because exemption strategy is case-specific, a consultation with The Law Office of Eric Gravel helps you avoid surprises and protect what matters most.

Common Reasons People Think They Don’t Qualify (But Often Do)

“I make too much money.”

High income doesn’t always disqualify you. The means test considers household size and realistic expenses. Many people above median still qualify after the expense review.

“I own a house in the Bay Area.”

Homeownership doesn’t block Chapter 7. The real issue is equity and how exemptions apply to your county’s housing values. Northern California Bankruptcy Lawyer+1

“I have a job. Isn’t Chapter 7 only for people with no income?”

No. Plenty of working people file Chapter 7. The question is whether your income and expenses leave room to repay debt.

“I filed bankruptcy before.”

You may still qualify depending on how long it has been since your last case and what chapter you filed. An attorney can confirm the timeline.

Things That Can Create Problems for Chapter 7 Eligibility

Even if you pass the means test, certain actions can complicate a Chapter 7 filing:

• Recent luxury spending or cash advances right before filing
• Repaying one creditor over others (especially family/friends) shortly before filing
• Transferring or hiding assets
• Filing without complete and accurate disclosures

These issues don’t always prevent Chapter 7, but they need careful handling. The Law Office of Eric Gravel helps clients file the right way and avoid mistakes that could delay or threaten a discharge.

Why Bay Area Clients Work With The Law Office of Eric Gravel

Bankruptcy is more than paperwork — it’s a legal strategy that affects your income, property, and future. The Law Office of Eric Gravel provides Bay Area residents with:

• Clear guidance on whether Chapter 7 fits your situation
• Accurate means test calculations
• A thoughtful exemption strategy to protect your assets
• Immediate protection from aggressive creditors
• Support from start to finish

Clients across San Francisco, Oakland, Berkeley, Alameda, San Mateo, Walnut Creek, Richmond, and surrounding communities trust the firm because the focus is always on real relief and long-term stability.

Find Out If You Qualify — With a Clear Plan

If you’re asking “Do I qualify for Chapter 7 bankruptcy in California?” the fastest way to get a real answer is to have your income, expenses, and debts reviewed by a bankruptcy lawyer.



Call The Law Office of Eric Gravel at 415-843-7454 or visit bklegalaid.com to schedule your consultation.