Automatic Stay & Discharge in California Bankruptcy
Filing bankruptcy triggers the automatic stay (11 U.S.C. § 362), an immediate halt to most collection — lawsuits, wage garnishment, repossession, and foreclosure. A discharge (11 U.S.C. § 524, § 727) permanently bars collecting discharged debts, but some debts are non-dischargeable (11 U.S.C. § 523), including most recent taxes, student loans, child support, alimony, and fraud debts.
By Find Local Law Editorial Team · Last reviewed: May 26, 2026
Researched and drafted with AI assistance and verified against primary sources (statutes, Judicial Council forms, and official court websites). This is general information, not legal advice.
This is general information, not legal advice. How these rules apply to your debts is fact-specific — talk to a California bankruptcy attorney.
Two features of bankruptcy do the heavy lifting: the automatic stay (protection while your case runs) and the discharge (the permanent relief at the end).
The automatic stay — protection on day one
The moment you file, the automatic stay kicks in (11 U.S.C. § 362). It’s an immediate halt to most collection activity, including:
- Lawsuits and collection calls,
- Wage garnishment,
- Repossession of vehicles, and
- Foreclosure on your home.
The stay gives you breathing room while your case proceeds. Some actions can resume if a creditor asks the court to lift the stay, but for most filers it stops the pressure right away.
The discharge — permanent relief
A discharge (11 U.S.C. § 524, § 727) permanently bars creditors from collecting the debts that were discharged. This is the relief most people file for — once a debt is discharged, the creditor can never pursue you for it again.
Debts that survive — non-dischargeable
Not everything goes away. Some debts are non-dischargeable (11 U.S.C. § 523), including:
- Most recent taxes,
- Student loans (absent a showing of undue hardship),
- Child support and alimony, and
- Debts arising from fraud.
These survive regardless of whether you file Chapter 7 or Chapter 13. What property you keep through the process is set separately by California exemptions.
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Start your free intakeFrequently asked questions
- What does the automatic stay stop?
- The automatic stay (11 U.S.C. § 362) immediately halts most collection the moment you file, including lawsuits, wage garnishment, repossession, and foreclosure.
- What does a discharge do?
- A discharge (11 U.S.C. § 524, § 727) permanently bars creditors from collecting the debts that were discharged. It's the relief most filers are seeking.
- Which debts can't be wiped out in bankruptcy?
- Some debts are non-dischargeable under 11 U.S.C. § 523, including most recent taxes, student loans (absent undue hardship), child support and alimony, and debts arising from fraud.
Sources
Related guides
- California Bankruptcy Exemptions California opted out of the federal bankruptcy exemptions, so filers cannot use the federal § 522(d) set. Instead California offers a choice between two state systems — you must pick one, not mix: the CCP § 704 series (with a large homestead under § 704.730) or the CCP § 703.140(b) bankruptcy-only set (with a wildcard at § 703.140(b)(5)).
- Chapter 13 Bankruptcy in California Chapter 13 is a repayment plan over 3 years (if you're below California's median income) or up to 5 years (at or above median); no plan exceeds 5 years (11 U.S.C. § 1322(d), § 1325). It lets people with regular income cure a mortgage or car default and keep their property.
- Chapter 7 Bankruptcy in California Chapter 7 is liquidation bankruptcy: a trustee can sell nonexempt property to pay creditors, and the individual debtor receives a discharge of most unsecured debts (11 U.S.C. § 727). It requires passing the means test and completing credit counseling. Most California filers keep their property using California's exemptions.
- The Chapter 7 Means Test in California The Chapter 7 means test (11 U.S.C. § 707(b)) compares your income to the median income for your household size in California. Below median, you generally qualify; above median, a disposable-income calculation may create a presumption of abuse. California's median figures update periodically via the U.S. Trustee.