Bankruptcy Process

If debt is overwhelming you in Redlands or anywhere in San Bernardino County, bankruptcy can stop collections fast and give you a structured path forward. Below is a clear, local guide to the process—what happens first, how long it takes, and which chapter may fit your situation. When you’re ready, our team is here to help you take the next step.

What happens when you file

• The “automatic stay” starts immediately when your case is filed—it’s a court order that stops most collection actions (calls, lawsuits, garnishments, foreclosures) while your case proceeds. 

• You’ll attend one brief meeting of creditors (the “341 meeting”), usually about 3–6 weeks after filing, where the trustee verifies your information; judges don’t attend.

• Chapter 7 cases typically reach discharge about 60–90 days after the 341 meeting (roughly 3–4 months total in many cases). Chapter 13 involves a court‑approved repayment plan lasting 3–5 years before discharge. 

Which chapter is right for me?

Chapter 7 (Liquidation)

Best for people with limited income and few non‑exempt assets who need a clean slate from unsecured debts such as credit cards and medical bills. Typical discharge occurs 60–90 days after the 341 meeting if no objections are filed. 

Chapter 13 (Repayment plan)

For filers with steady income who need to catch up on a mortgage/car or who don’t qualify for Chapter 7 under the means test. A plan is confirmed by the court and runs 3–5 years before discharge.

California exemptions (what you can keep)

California requires you to use state exemptions (not federal) and to choose one of two systems: §703 “System 2” or §704 “System 1.” System 2 is bankruptcy‑only; System 1 includes the modern homestead formula. Choosing the right set is strategic and fact‑specific. FindLaw CodesNolo

• Homestead (System 1 – CCP §704.730): protects equity in your principal residence equal to the prior‑year county median home price or $300,000, whichever is greater, capped at $600,000 (adjusted annually). In Redlands (San Bernardino County), the exact cap updates each year. Justia Law

• System 2 (CCP §703.140): provides a flexible “wildcard” and other personal‑property protections that can be advantageous if you don’t have significant home equity. Nolo

We’ll analyze both systems for you before filing to maximize protection of your home, vehicle, tools, retirement, and other assets.

Local to Redlands: where your case is handled

Most Redlands cases file in the U.S. Bankruptcy Court — Central District of California, Riverside Division, which serves San Bernardino and Riverside Counties.
Address: 3420 Twelfth St., Riverside, CA 92501. United States Bankruptcy Court

---

The bankruptcy process: step by step

1) Strategy & document prep

• We review your goals (stop wage garnishments, prevent repossession/foreclosure, eliminate unsecured debts).

• We analyze means testing (income vs. California median and allowable expenses) and asset protection using CA exemptions. The means test uses U.S. Trustee median‑income data and IRS standards updated regularly. Department of Justice

CTA: 📞 Speak with a Redlands bankruptcy attorney: 909‑915‑0181

---

2) Complete required courses

Two short courses are required for individuals:

• Pre‑filing credit counseling (before filing).

• Post‑filing debtor education (before discharge).
  Approved providers are listed by the U.S. Trustee Program and the U.S. Courts. Department of JusticeUnited States Courts

---

3) File your case → Automatic Stay begins

We file your petition, schedules, and statements. The automatic stay takes effect the moment we file—stopping most collection activity while the case proceeds. If a creditor wants to continue, they must seek relief from stay from the court. United States Bankruptcy Court

---

4) Trustee meeting (341 meeting)

• Chapter 7: typically 21–40 days after filing. United States Courts

• Chapter 13: typically 21–50 days after filing. United States Courts
  You’ll answer basic questions under oath about your finances; we attend with you.

---

5) What happens next depends on your chapter

Chapter 7:

• Trustee evaluates non‑exempt property (many consumer cases are “no‑asset”).

• If no objections, discharge is usually entered 60–90 days after the 341 meeting (often ~3–4 months total from filing). United States Courts+1

Chapter 13:

• You start plan payments within 30 days of filing; the court holds a confirmation hearing within ~45 days after the 341 meeting.

• Your plan typically runs 3–5 years; discharge comes after successful completion. United States Courts

---

What bankruptcy can and cannot do (high level)

Can:

• Stop most lawsuits, foreclosures, repossessions, and garnishments via the automatic stay. United States Courts

• Discharge many unsecured debts (credit cards, medical bills). Timing depends on chapter. United States Courts

Cannot:

• Discharge certain debts, such as domestic support, some taxes, and (absent undue hardship) most student loans. United States Courts

Quick comparison: Chapter 7 vs. Chapter 13