Chapter 7 · Malibu
Chapter 7 Attorney for Malibu Residents
Malibu fire survivors and business owners can sometimes use Chapter 7 after a sharp drop in income. A Chapter 7 case wipes out most credit card, medical and personal loan debt in about four months. Call (310) 362-9071 for a free consultation to see if you qualify.
- Half of Malibu households earn under $194,421
- Flat fees from $1,200 plus the court filing fee
- Payment plans available
- Most cases take about four months
Do Malibu households pass the means test?
Half of Malibu households earn more than $194,421 a year, which is above California's median even for a family of four ($139,071). Many people here go on to the second part of the means test, which subtracts costs like housing, taxes and car payments. High housing costs can still leave room to qualify for Chapter 7.
| Household size | Median income |
|---|---|
| 1 person | $79,253 |
| 2 people | $102,797 |
| 3 people | $116,541 |
| 4 people | $139,071 |
| Each extra person | add $11,100 |
The test uses your average income for the six months before filing, not your yearly salary. A recent job loss or cut in hours can help you qualify. See our means test evaluation page for how the full test works.
What Malibu filers usually keep in Chapter 7
About 75.4% of Malibu homes are lived in by their owners, so many filers here own a house. Homeowners usually use California's first set of exemptions, which includes the homestead exemption. Retirement accounts, household goods and a car with modest equity are usually protected too.
About 75.4% of homes in Malibu are lived in by their owners, and the median owner-occupied home is valued at $2,000,000 or more. At those values, an owner with a small mortgage can have more equity than California's homestead exemption protects. When that is true, Chapter 7 could put the house at risk, and Chapter 13 is often the safer way to keep it. California's homestead exemption rises with inflation each year. In Los Angeles County, owners generally get the top amount, which is about $744,000 in 2026.
Why people in Malibu file Chapter 7
After the fires, some Malibu residents lost businesses, jobs and rental income at once. If your six-month income has dropped or your debt is mostly business debt, Chapter 7 may fit.
About 12.6% of Malibu residents live below the poverty line. For people with little property and bills they cannot pay, Chapter 7 is often the fastest fresh start.
The Chapter 7 timeline for a Malibu case
Your case starts with a free consultation, in our office or by video. Next comes a short online credit counseling course, and we gather pay stubs, tax returns and bills. The day we file, garnishments, lawsuits and collection calls stop. About a month later, you attend a short meeting with the trustee assigned by the court in Santa Barbara. If no one objects, the discharge usually comes about 60 days after that meeting. For most Malibu filers, the whole case takes about four months.
Related pages
If you have a house or car you are behind on, read about our Chapter 13 attorney services for Malibu. For both options, see bankruptcy attorney for Malibu, or read our main Chapter 7 bankruptcy page.
Chapter 7 questions from Malibu
How long does Chapter 7 take for Malibu residents?
Chapter 7 usually takes about four months for Malibu residents, from filing to discharge. Collection stops the day the case is filed.
Do most Malibu households qualify for Chapter 7?
Many Malibu households earn more than California's median, so they need the second part of the means test. That part subtracts housing, taxes and other costs, and many still qualify. We run your numbers at the free consultation.
Why would a Malibu bankruptcy be filed in Santa Barbara?
A Malibu bankruptcy is filed in the Northern Division in Santa Barbara because the court's rules assign Malibu there, even though Malibu is in Los Angeles County. Many hearings and meetings are held by video.
Free consultation
See if Chapter 7 fits your Malibu household
Call (310) 362-9071 or send the form. Have your last six months of pay stubs handy.
Law Offices of John Asuncion9454 Wilshire Blvd., Penthouse Floor
Beverly Hills, CA 90212
(310) 362-9071
Monday to Friday, 9 a.m. to 6 p.m.