San Diego Bankruptcy Attorneys

Free consultation. Call (619) 230-0330 or request a free bankruptcy evaluation to speak with a San Diego bankruptcy attorney today.

Facing creditor harassment, wage garnishment, or the threat of losing your home? At Banker’s Hill Law Firm, our bankruptcy attorneys in San Diego provide compassionate, effective debt relief. With more than 35 years of experience, we handle Chapter 7 and Chapter 13 cases and small-business filings, protecting your rights and your property at every step.

Whether you need to stop a wage garnishment, prevent a foreclosure, or discharge overwhelming unsecured debt, this page explains how bankruptcy works in California, whether you qualify, which of your assets are protected, and what to expect from the process.

What Is Bankruptcy?

Bankruptcy is a federal legal process, governed by the U.S. Bankruptcy Code, that gives honest individuals and businesses a fresh financial start. Filing a case in the U.S. Bankruptcy Court for the Southern District of California, which serves San Diego and Imperial counties, allows you to:

Eliminate or restructure qualifying debts
Stop collections, foreclosures, and repossessions immediately through the automatic stay
Put an end to creditor harassment and lawsuits
Protect your property using California’s generous exemptions
Begin a clear path toward financial recovery

Which Type of Bankruptcy Is Right for You?

Most individuals file under one of two chapters, and the right choice depends on your income, your assets, and your goals. Our attorneys help you decide, then guide you through the filing. Explore each option in depth on its own page:

Chapter 7 bankruptcy in San Diego is a liquidation that erases most unsecured debt (credit cards, medical bills, personal loans) in about three to six months, and is designed for filers with limited income.
Chapter 13 bankruptcy in San Diego is a three-to-five-year repayment plan that lets you keep your property while catching up on a mortgage or car loan, and suits filers with regular income or significant assets.

Do You Qualify to Erase Your Debts? The California Means Test

Eligibility for a debt-erasing (liquidation) bankruptcy generally depends on income: your household income must be at or below the California median for your household size, or you must pass the means test under Bankruptcy Code section 707(b). For cases filed on or after April 1, 2026, the California median-income figures are:

Household size	California median income (annual)
1 person	$79,253
2 people	$102,797
3 people	$116,541
4 people	$139,071
Each additional person	Add about $11,100

Earning above the median does not automatically disqualify you. The means test also subtracts allowed living expenses, and many higher earners still qualify. If a liquidation is not available, a court-supervised repayment plan almost always is. We run the numbers for you at no cost.

What California Bankruptcy Exemptions Protect Your Property

A common fear is losing everything in bankruptcy. In reality, California has some of the strongest exemption laws in the country, and most filers keep all of their property. California has opted out of the federal exemptions, so filers choose between two state systems:

System 1 (Code of Civil Procedure section 704) protects the most home equity. Its 2026 homestead exemption shields between $371,547 and $743,459 of equity in your primary residence, based on your county’s median home price. Because San Diego home values are high, local homeowners typically qualify near the top of that range. This system also protects vehicle equity, household goods, tools of your trade, and retirement accounts.
System 2 (Code of Civil Procedure section 703.140) offers a smaller homestead but adds a flexible “wildcard” exemption you can apply to any property. It is often the better choice for renters and filers with little home equity.

You may use only one system per case, and choosing correctly can determine whether you keep a car, a tax refund, or savings. This is one of the most important decisions in a California bankruptcy, and it is a core part of what we handle for you.

Which Debts Bankruptcy Can and Cannot Erase

Bankruptcy is powerful, but it does not erase every obligation. Knowing the difference before you file helps set realistic expectations.

Commonly discharged debts

Credit card balances, medical bills, personal and payday loans, most older income taxes, deficiency balances after a repossession, and most other unsecured debts.

Debts that usually survive (Bankruptcy Code section 523)

Recent income taxes, child support and spousal support, most student loans, court-ordered fines and restitution, and debts arising from fraud or from a DUI-related injury. Secured debts such as a mortgage or car loan can be discharged, but the lender keeps its lien unless you keep paying or surrender the property.

Benefits of Filing Bankruptcy

An immediate automatic stay that stops collections, garnishments, and lawsuits
Protection for essential assets, including your home, car, and wages
A permanent discharge of qualifying debts
An end to creditor harassment
A realistic path to rebuilding your credit and your financial stability

Our San Diego Bankruptcy Process

Free consultation

We review your income, debts, and assets and explain which type of bankruptcy fits your situation.

Credit counseling and preparation

You complete the required credit-counseling course (mandatory within 180 days before filing), and we prepare your petition, schedules, and exemption choices.

Filing and the automatic stay

We file your case with the bankruptcy court, and the automatic stay immediately halts creditor action.

Meeting of creditors

You attend a short 341(a) meeting with the trustee, and we prepare you for and attend it with you.

Discharge or repayment

Depending on your case, you either receive a discharge in a few months or complete a court-supervised repayment plan. You also finish a debtor-education course before discharge.

Frequently Asked Questions About Bankruptcy in San Diego

Usually not. California’s exemption laws protect a large amount of home equity. For 2026, the California homestead exemption (Code of Civil Procedure section 704.730) protects between $371,547 and $743,459 of equity in your primary residence, based on your county’s median home price. San Diego’s high home values mean local filers typically receive near the top of that range. Vehicle, household goods, and retirement-account exemptions protect other essentials, and a repayment-plan bankruptcy lets you keep property while catching up on missed payments.

Most people qualify for a debt-erasing (liquidation) bankruptcy if their household income is at or below the California median for their household size, or if they pass the means test. For cases filed on or after April 1, 2026, the California median income is about $79,253 for one person, $102,797 for two, $116,541 for three, and $139,071 for four, with roughly $11,100 added for each additional person. Earning more does not automatically disqualify you, and a repayment-plan bankruptcy remains available if you do not qualify.

The right choice depends on your income, your assets, and your goals. A liquidation erases most unsecured debt in a few months and suits filers with limited income, while a repayment plan protects your property while you catch up on secured debts over three to five years. Our attorneys help you decide, and you can read about each option in depth on our San Diego Chapter 7 bankruptcy and San Diego Chapter 13 bankruptcy pages.

Bankruptcy typically discharges credit card balances, medical bills, personal loans, and most other unsecured debts. Under Bankruptcy Code section 523, some debts generally survive, including recent income taxes, child and spousal support, most student loans, court fines, and debts from fraud or a DUI injury. We review your debts up front so you know what a discharge will and will not cover.

Yes, immediately. The moment your case is filed, the automatic stay under Bankruptcy Code section 362 takes effect and legally halts wage garnishments, collection calls, lawsuits, repossessions, and foreclosure activity. Creditors that continue to pursue you after the stay can face sanctions.

A liquidation case usually takes about three to six months from filing to discharge. A repayment-plan case runs three to five years because it involves a court-supervised plan, though the automatic stay protects you the entire time.

No. A bankruptcy stays on your credit report for several years, but many clients rebuild their credit within one to two years after discharge by using secured cards and paying on time. For people already behind on payments, filing often marks the start of credit recovery rather than the end of it.

It is strongly recommended. Bankruptcy is a technical process with strict deadlines, required credit-counseling courses, and California-specific exemption choices that determine what property you keep. A San Diego bankruptcy attorney protects your assets, avoids costly filing errors, and handles the paperwork and creditor meeting for you. Your initial consultation with our firm is free.

About the Attorney: Maxwell C. Agha

Maxwell C. Agha is the founding principal of Banker’s Hill Law Firm, A.P.C. He earned his Juris Doctor from the University of San Diego School of Law in 1988 and has more than 35 years of experience serving San Diego families, including individuals and small-business owners seeking debt relief through bankruptcy.

Our team offers bilingual representation in English, Spanish, Russian, Arabic, Lao, and Cantonese, and we treat every client with dignity and respect. We explain your options in plain language, offer a free initial consultation, and provide clear, upfront pricing for bankruptcy representation so you can move forward with confidence.

Authored and legally reviewed by Maxwell C. Agha, Principal Attorney, Banker’s Hill Law Firm, A.P.C. Last reviewed: August 2026. This page is legal information, not legal advice.

Take the First Step Toward Financial Freedom

Do not let overwhelming debt control your life. The trusted bankruptcy attorneys at Banker’s Hill Law Firm are here to help you understand your options and choose the right path. Call (619) 230-0330 or request a free bankruptcy consultation to get started. You can also contact our office online. Se habla espanol: vea esta pagina en espanol.