The Law Office of Stanley D. Bowman  top
700 N. Pacific Coast Highway Suite 202-A, Redondo Beach, CA 90277
Telephone (310) 937-4529  Fax (310) 937-4440
Back to Home
	Practice Specialty: Bankruptcy
If you’re struggling with debt, you may be wondering whether bankruptcy is the right step. Bankruptcy is a process under federal law that can give people a fresh start when debt becomes unmanageable.  But because you live in California, state law also plays a big role — especially in deciding what property you can keep.  Here’s a clear look at the pros and cons to help you understand your options. Bankruptcy can be a powerful tool to stop creditor harassment, protect your home, and wipe out overwhelming debt.  But it also comes with long-term consequences for your credit and finances.  Because both federal and California law apply, choosing the right type of bankruptcy and the right exemption system is critical. Creditors have certain restrictions of them when trying to collect on a debt.  That’s where legal guidance makes all the difference.  An experienced attorney will help you understand your options, protect what matters most, and decide whether bankruptcy is the right path for you.  When you are ready, call the Redondo Beach office at (310) 937-4529.  Stan Bowman will explain to you what are rights, and, as your attorney, Stan will insure those rights are enforced. There are differences between federal bankruptcy law and California bankruptcy law.  The chart below explains the main differences between the two.
Comparing Chapter 7, Chapter 13, and Chapter 11 Bankruptcy
Bankruptcy isn’t one-size-fits-all.  The U.S. Bankruptcy Code offers different chapters depending on your income, assets, and goals.  Choosing the right chapter depends on your income, assets, and goals.  Whether you’re seeking a clean slate, a structured repayment plan, or a way to reorganize a business, each chapter offers a distinct path forward.  The table below summarizes the similarities and differences between Chapter 7 bankruptcy, Chapter 13 bankruptcy, and Chapter 11 bankruptcy.
Key Similarities between Chapter 7, Chapter 13, and and Chapter 11 Bankruptcy
✓ Federal Protection: All three chapters are governed by federal law and trigger the automatic stay, which stops creditor actions immediately.
✓ Debt Relief: Each chapter offers a way to manage or eliminate debt, depending on your financial situation.
✓ Court Supervision: All require filing with a bankruptcy court and following legal procedures.
Key Differences between Chapter 7, Chapter 13, and and Chapter 11 Bankruptcy
Chapter 7 is best for individuals with low income and few assets who want a fast discharge. It’s often called “straight bankruptcy” and involves liquidation of non-exempt property.
Chapter 13 suits individuals with steady income who want to keep their property and repay debts over time. It’s ideal for catching up on mortgage or car payments.
Chapter 11 is primarily used by businesses or individuals with complex finances. It allows for custom reorganization plans but involves more court oversight and higher costs.

Pros and Cons of Filing for Bankruptcy
The Benefits of Filing Bankruptcy
✓ Immediate Relief From Creditors As soon as you file, the “automatic stay” goes into effect. This means creditors must stop calling, sending letters, garnishing wages, or moving forward with lawsuits and foreclosures.
✓ Debt Forgiveness  Many unsecured debts—like credit cards, medical bills, and personal loans—can be wiped out in Chapter 7 bankruptcy. In Chapter 13, you can reorganize your debts into a manageable repayment plan.
✓ A Fresh Start Bankruptcy is designed to give honest people a chance to reset their finances and move forward.
✓ Protecting Your Property in California California law lets you keep certain assets through exemptions. Depending on your situation, you can choose between two systems:
• Homestead-focused (System 1): Protects home equity. Currently between $300,000 and $600,000, depending on your county.
• Wildcard-focused (System 2): Offers flexibility to protect cash, savings, or other property if you don’t own a home.
✓ Catch Up on Important Debts Chapter 13 allows you to catch up on mortgage payments, car loans, or taxes over time, while keeping your property.
The Drawbacks of Filing Bankruptcy
✓ Impact on Credit A bankruptcy stays on your credit report for up to 10 years (Chapter 7) or 7 years (Chapter 13). This can make it harder to get loans or credit cards in the short term.
✓ Not All Debts Go Away
Some debts—like child support, alimony, most student loans, and certain taxes—cannot be discharged.
✓ Risk of Losing Property
In Chapter 7, property that isn’t protected by California’s exemptions may be sold to pay creditors.
✓ Public Record
Bankruptcy filings are public, which means employers, landlords, or lenders could see them.
✓ Costs and Commitment
Filing involves court fees, required counseling courses, and attorney’s fees. Chapter 13 cases also require sticking to a strict repayment plan for 3–5 years.
Bankruptcy in a Nutshell
Bankruptcy is a federal process that can stop creditor harassment, wipe out many debts, and give you a fresh start. In California, special exemption rules help you protect your home, savings, or other property.  The Upside: Relief from lawsuits, wage garnishments, and overwhelming debt.  The Downside: A hit to your credit, some debts that can’t be erased, and the risk of losing non‑exempt property. It’s a powerful tool — but not the right fit for everyone. Talk to an Attorney Today Every case is different, and the choice between Chapter 7, Chapter 13, and California’s exemption systems can make all the difference.  An experienced attorney like Stan Bowman can explain your options, protect what matters most, and guide you toward the best outcome.  Call the Redondo Beach office today at (310) 937-4529.
Back To Top