Chapter 7 Bankruptcy is designed for people in financial difficulty who do not have the ability to pay their existing debts. People who make too much money may not qualify for a Chapter 7 Bankruptcy. High income earners must pass the “MEANS TEST.” An experienced bankruptcy attorney can help a high income earner pass this test. Also, most people do not lose any of their property in a Chapter 7 Bankruptcy. 

Further, a Chapter 7 Bankruptcy allows you to ELIMINATE your unsecured debts (i.e. credit cards, medical bills, payday loans, auto deficiencies, personal loans). Some debts in a Chapter 7 Bankruptcy will likely not be discharged  (i.e. student loans; domestic support and property settlement obligations; certain tax debt; post-petition debts; most fines, penalties, forfeitures, and criminal restitution obligations; and debts for death or personal injury caused by operating a motor vehicle, vessel, or aircraft while intoxicated from alcohol or drugs). 

Chapter 7 Bankruptcy STOPS: lawsuits; wage garnishments; bank levies; repossessions; and creditor harassment (i.e. debt collection letters and calls).

Chapter 7 Bankruptcy puts up a shield. This shield PROTECTS things you own. So, you keep what you own. Generally, at about month 3-4 from when you filed your bankruptcy, you receive a Chapter 7 Bankruptcy Discharge Order. This Discharge Order ELIMINATES pre-petition debt (debt you owed prior to filing bankruptcy). 

Finally, most people end of walking away from a Chapter 7 Bankruptcy with a Discharge Order and more available money to spend on living expenses.


Chapter 13 Bankruptcy is designed for individuals with regular income who would like to pay all or part of their debt over a period of time. You must meet specific requirements set out in the Bankruptcy Code to qualify.

Under a Chapter 13 Bankruptcy, you must file a Chapter 13 Plan with the court to repay your creditors all or part of the money you owe them, using your future earnings. Chapter 13 Plans are 3 to 5 years long unless you pay off your creditors through the plan sooner. All Chapter 13 Plans are subject to Court approval. 

A big advantage available in Chapter 13 Bankruptcy is the ability to cure mortgage arrears. If you are behind on one or more mortgage payments, you may be able to fix this through a Chapter 13 Bankruptcy. If foreclosure is on the horizon, a Chapter 13 Bankruptcy may be a good option for you and your family to consider. 

Our bankruptcy practice focuses on:

  •      Chapter 7 Bankruptcy
  •      Chapter 13 Bankruptcy
  •      Foreclosure Prevention
  •      Creditor Misconduct (FDCPA, RFDCPA, TCPA, FCRA, CCRAA)
  •      Adversary Proceedings 

Although filing Chapter 7 Bankruptcy or Chapter 13 Bankruptcy may seem overwhelming, for many it is an opportunity for a “Fresh Start”. We are here to help you get through the bankruptcy process. Our experienced, local bankruptcy attorney will help you every step of the way!



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This website contains attorney advertising created by Aaron M. Lloyd, Esq. and is for informational purposes only. This site and its information is not legal advice. Please feel free to get in touch with us by email, letters, or phone calls. Contacting us does not create an attorney-client relationship. An attorney-client relationship will only be created by a fully executed written agreement. Until an attorney-client relationship is established, please withhold from sending any confidential information to us. Aaron M. Lloyd, Esq. is licensed to practice in the state of California. Thank you.

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.