Filing for bankruptcy can be a difficult decision, but for many individuals and businesses in San Diego, it offers a fresh financial start. If mounting debts, wage garnishments, or constant creditor calls have become overwhelming, understanding the process is the first step toward relief.

In this guide, we’ll walk you through how to file for bankruptcy in San Diego, the types of bankruptcy available, the steps involved, and what to expect along the way.

1. Understand the Types of Bankruptcy

Before you start the filing process, you need to know which type of bankruptcy best fits your situation. The most common for individuals are:

  • Chapter 7 Bankruptcy (Liquidation)
     Designed for people with little to no disposable income, Chapter 7 discharges most unsecured debts like credit cards and medical bills. In some cases, certain assets may be sold to repay creditors, but many assets are protected under California exemptions. 
  • Chapter 13 Bankruptcy (Reorganization)
     This option allows you to keep your property and repay some or all of your debts through a 3- to 5-year court-approved payment plan. It’s often chosen by those who have a steady income and want to catch up on mortgage or car payments. 

For businesses, Chapter 11 bankruptcy may be an option, allowing for reorganization while continuing operations.

2. Complete Credit Counseling

In San Diego—and anywhere in the United States—you must complete a credit counseling course from a government-approved agency before filing. This course, typically lasting 60–90 minutes, can be taken online, over the phone, or in person.

The course will help you understand your financial options, and you’ll receive a certificate of completion that must be included in your bankruptcy filing.

3. Gather the Necessary Financial Documents

To successfully file for bankruptcy, you’ll need detailed information about your finances. This may include:

  • Recent tax returns (usually the last two years) 
  • Pay stubs or proof of income from the last six months 
  • Bank statements 
  • A list of all debts and creditors 
  • Property deeds, car titles, and other asset documents 
  • Monthly living expenses 

Having these documents ready will make the process smoother and help your attorney (if you hire one) prepare your case accurately.

4. Determine Eligibility for Chapter 7 or Chapter 13

If you’re considering Chapter 7, you must pass the means test, which compares your income to the median income in California for your household size. If your income is below the median, you likely qualify. If it’s higher, you may still qualify after allowable expenses are deducted, or you may need to file under Chapter 13.

For Chapter 13, you must have regular income and unsecured debts below $465,275 and secured debts below $1,395,875 (limits may change periodically).

5. File Your Bankruptcy Petition in San Diego Federal Court

In San Diego, bankruptcy cases are handled by the U.S. Bankruptcy Court for the Southern District of California. The main courthouse is located at:

U.S. Bankruptcy Court – Southern District of California
 325 West F Street
 San Diego, CA 92101

Your bankruptcy petition will include:

  • The official bankruptcy forms 
  • Your financial schedules 
  • Your credit counseling certificate 
  • Filing fees (Chapter 7: $338; Chapter 13: $313, as of 2025; fee waivers or payment plans may be available) 

If you hire a bankruptcy attorney in San Diego, they will file these documents electronically on your behalf.

6. Automatic Stay Goes Into Effect

Once you file, the automatic stay takes effect immediately. This legal protection stops most collection actions, including:

  • Wage garnishments 
  • Lawsuits 
  • Foreclosures 
  • Collection calls and letters 

The automatic stay gives you breathing room to work through the bankruptcy process without creditor harassment.

7. Attend the 341 Meeting of Creditors

About 20–40 days after filing, you’ll attend the 341 meeting of creditors, held at a designated location in San Diego or via video/phone.

At this meeting:

  • You’ll answer questions under oath from the bankruptcy trustee 
  • Creditors can also ask questions, though they rarely attend 
  • You must bring valid ID and proof of Social Security number 

This meeting typically lasts less than 10 minutes, but it’s a critical part of the process.

8. Complete a Debtor Education Course

After filing, but before you can receive a discharge of your debts, you must complete a debtor education course from an approved provider.

This second course focuses on money management and budgeting to help you avoid future financial troubles. You’ll receive a certificate of completion, which must be filed with the court.

9. Receive Your Bankruptcy Discharge

The final step is the discharge of your qualifying debts:

  • Chapter 7: Discharge is usually granted about 3–4 months after filing. 
  • Chapter 13: Discharge occurs after you complete your 3–5 year repayment plan. 

Not all debts can be discharged—student loans, most taxes, and child support are generally non-dischargeable.

10. Consider Hiring a San Diego Bankruptcy Lawyer

While you can file for bankruptcy without an attorney, having a qualified San Diego bankruptcy lawyer can make the process easier, especially if your case is complex. A lawyer can:

  • Ensure all paperwork is completed correctly 
  • Represent you at the 341 meeting 
  • Help you use California bankruptcy exemptions to protect your assets 
  • Negotiate with creditors if needed 

Most bankruptcy lawyers offer free consultations and may offer payment plans for their fees.

Frequently Asked Questions (FAQ)

Q: How long does bankruptcy stay on my credit report?
 Chapter 7 stays for up to 10 years, while Chapter 13 remains for up to 7 years.

Q: Will I lose my home if I file for bankruptcy in San Diego?
 Not necessarily. California has generous homestead exemptions that can protect your primary residence in many cases.

Q: Can I file for bankruptcy more than once?
 Yes, but there are waiting periods between filings depending on the type of bankruptcy.

Final Thoughts

Filing for bankruptcy in San Diego is a significant step that can provide relief from overwhelming debt. By understanding the process—from credit counseling and gathering documents to attending the 341 meeting and receiving your discharge—you can navigate the system with confidence.

If you’re still unsure whether bankruptcy is right for you, consider speaking with an experienced San Diego bankruptcy attorney who can explain your options and guide you toward the best financial solution for your situation.