Chapter 7 Bankruptcy in Riverside: Is It Right for You?

At Reid & Hellyer, we specialize in guiding residents of Riverside, California, through the complexities of Chapter 7 bankruptcy. This article aims to provide a comprehensive overview of Chapter 7 bankruptcy and help you determine if it’s the right solution for your financial challenges.

Understanding Chapter 7 Bankruptcy

Chapter 7 bankruptcy, commonly known as ‘liquidation’ bankruptcy, is designed to help individuals unable to meet their unsecured debt obligations, such as credit card debts or medical bills. In this process, some of your assets may be liquidated to pay off creditors, leading to the discharge of most remaining debts.

Eligibility for Chapter 7 in Riverside

Determining your eligibility for Chapter 7 begins with the ‘means test.’ This test compares your income against the median income in California. If your income is below the median, you may qualify for Chapter 7. The U.S. Department of Justice provides a Means Testing Resource that can help you understand this aspect better.

Assets and Exemptions in California

A major concern in Chapter 7 is the potential loss of assets. Fortunately, California offers exemptions that might protect some of your property, including certain amounts of equity in your home, vehicle, personal belongings, and retirement accounts. The California Courts website provides detailed information about these exemptions.

Pros and Cons of Filing Chapter 7

Chapter 7 bankruptcy has both advantages and drawbacks:


  • Speedy Process: Typically, a Chapter 7 case can be completed within 3-6 months.
  • Discharge of Debts: Most unsecured debts can be discharged, offering a fresh financial start.
  • No Repayment Plans: Unlike Chapter 13, there is no need to adhere to a structured repayment plan.


  • Credit Impact: Chapter 7 bankruptcy remains on your credit report for 10 years.
  • Asset Liquidation: Some of your assets might be liquidated to pay off creditors.
  • Non-dischargeable Debts: Debts like student loans, alimony, and child support are typically not discharged.

The Chapter 7 Bankruptcy Process

Filing for Chapter 7 bankruptcy involves a series of steps, including credit counseling, filing the petition, and attending a meeting of creditors. The U.S. Courts website offers a guide to the bankruptcy process.


Chapter 7 bankruptcy can be a viable path to regaining financial stability for many in Riverside. If you are considering this option, it’s crucial to get informed and professional advice. Contact Reid & Hellyer today for expert guidance and support in navigating your bankruptcy case, ensuring you make the best decision for your financial future.


The information in this blog post (“post”) is provided for general informational purposes only, and may not reflect the current law in your jurisdiction. No information contained in this post should be construed as legal advice from Reid & Hellyer, APC or the individual author, nor is it intended to be a substitute for legal counsel on any subject matter. No reader of this post should act or refrain from acting on the basis of any information included in, or accessible through, this Post without seeking the appropriate legal or other professional advice on the particular facts and circumstances at issue from a lawyer licensed in the recipient’s state, country or other appropriate licensing jurisdiction.