Last Updated on October 30, 2025 by Michelle Garcia
The fluorescent lights of the San Mateo County Courthouse hummed overhead as I watched a couple from the Baywood neighborhood finally breathe a sigh of relief. Their shoulders, which had been up around their ears for months, just dropped. They’d just had their Chapter 13 plan confirmed, and that sound—that quiet, collective exhale—is something you don’t forget. It’s why I’ve been doing this here for over a decade.
Honestly, when people in San Mateo start looking into bankruptcy, they’re usually at the end of their rope. They’ve been wrestling with credit card debt from the Hillsdale Shopping Center, maybe fell behind on a mortgage in a neighborhood like Beresford, and the collection calls are relentless. They’re not looking for a way out of their responsibilities; they’re looking for a fresh start, the way the law intended. And the two main paths for individuals are Chapter 7 and Chapter 13. It’s not onesizefitsall, and the right choice depends entirely on your specific assets, income, and goals.
What It’s Really Like to File for Bankruptcy Here
To tell you the truth, there’s a common misconception that filing for bankruptcy means you’ve failed. Out here, with the cost of living being what it is, it’s often the opposite—it’s a strategic, responsible decision to regain control. I had a client, a small business owner from the North Central area, who was using personal credit cards to keep his shop afloat during the pandemic. The debt became unsustainable. He was a hardworking guy, but the math just didn’t work anymore. We filed a Chapter 7 for him, and it wasn’t about wiping the slate clean so much as it was about stopping the bleeding so he could actually keep his business and his San Mateo home.
The process itself is very administrative. Most of your interaction is with your attorney and the paperwork. You’ll only go to the courthouse in Redwood City once, for a brief meeting with the bankruptcy trustee. It’s not a courtroom scene with a judge; it’s a conference room where the trustee verifies your information. The whole thing usually lasts about ten minutes. Honestly, the anticipation is almost always worse than the event itself.
Chapter 7: The “Fresh Start”
Think of Chapter 7 as a reset button. It’s designed for people who don’t have the means to pay back their unsecured debts. We’re talking credit cards, medical bills, personal loans—that kind of thing.
Here’s the insider secret a lot of websites won’t tell you: most people get to keep everything they own. Wait — actually, let me rephrase that more clearly. California has a very robust set of exemption laws that protect your property. Your retirement accounts are almost always 100% safe. Your car, up to a certain equity value, is protected. The clothes in your closet, your household goods… it’s all covered.
The fear of losing your car or your grandmother’s heirlooms is what paralyzes a lot of folks. But the truth is, unless you have a significant amount of nonexempt property (like a second home or a very expensive, paidoff car), you’re not going to lose it. The trustee isn’t interested in your used furniture; they’re looking for major, liquidatable assets that aren’t protected. In my 12 years here, I can count on one hand the number of cases where a client had to surrender any property at all.
Chapter 13: The “Reorganization”
Now, Chapter 13 is a different beast. It’s a repayment plan. You consolidate your debts into a single, manageable monthly payment that you make for three to five years. This is the tool you use when you have assets you want to protect that wouldn’t be fully covered in a Chapter 7, or when you have a type of debt that Chapter 7 doesn’t erase.
The classic San Mateo scenario? You’re behind on your mortgage and facing foreclosure. Chapter 13 stops the foreclosure immediately and allows you to spread those missed payments over the life of your plan. So instead of having to come up with $20,000 in backpayments tomorrow, you pay a portion of it each month. It saves your house. I’ve seen it work time and again for families all over the city, from the treelined streets of Baywood to the hillsides.
It’s also the only way to deal with certain tax debts or to restructure car loans if you owe more than the car is worth. You know what’s funny? People think bankruptcy is all about not paying people back. But with Chapter 13, you’re proving your commitment to paying what you can, under the court’s protection.
The Local San Mateo Hurdle: The Means Test
This is the big one. To qualify for Chapter 7, you have to pass the “Means Test.” It’s a formula that compares your household income to the median income for a family of your size here in California. San Mateo County has one of the highest median income levels in the entire country. That still stings to think about, because it means some people who would qualify for Chapter 7 almost anywhere else sometimes don’t qualify here, simply because the cost of living is so astronomical.
If your income is above the median, the test gets more complicated, factoring in your specific expenses. This is where an experienced local attorney is crucial. We know how the local trustees view certain expenses—things like high transportation costs because you commute to the city, or the actual cost of childcare in this area. We can structure your petition to reflect the realworld financial pressures of living in San Mateo.
What This Actually Costs in San Mateo
Let’s talk numbers. This isn’t free, but it’s an investment in your future. Attorney fees for a standard Chapter 7 bankruptcy in San Mateo typically range from $1,500 to $2,800. Chapter 13 is more complex, so fees are usually between $3,500 and $5,000. But here’s the counterintuitive part: the court filing fee is the same for everyone, set by the federal government. It’s $338 for Chapter 7 and $313 for Chapter 13.
Most of my clients are surprised that it’s not more. When you’re drowning in tens of thousands of dollars of debt, spending a few thousand to make it disappear is a pretty straightforward calculation. And most attorneys, including my firm, offer payment plans. We know you’re coming to us because you’re in financial distress; we’re not going to demand a lump sum up front.
Who to Talk To in San Mateo
Based on actual local presence, here are some established providers in San Mateo:
Sagaria Law, P.C. — Serves the greater San Mateo area with a focus on both Chapter 7 and 13.
Rafi Law Firm — Located in downtown San Mateo, offering bankruptcy legal services.
Zen Bankruptcy — A local firm serving clients throughout the Peninsula.
The Law Offices of John Stuart Smith — Provides bankruptcy assistance in the San Mateo area.
It’s critical to verify a lawyer’s standing. You can check their license through the State Bar of California. And for official forms and information, the source is always the United States Courts website.
Common Questions from San Mateo Neighbors
Will I ever get credit again?
Yes, and probably sooner than you think. You’ll start getting credit card offers—often with high interest rates—within months of your discharge. The key is to use one responsibly to rebuild your history. Your credit score can actually start improving immediately after filing because the old, delinquent accounts are no longer dragging you down.
What about my job? Can my employer find out?
For most people, your employer will never know. Bankruptcy filings are public record, but they’re not easily searchable by name unless someone is specifically looking for it. There are very strict laws protecting you from being fired solely because you filed for bankruptcy.
Which is better, Chapter 7 or 13?
It’s not about better, it’s about which tool fits your situation. If you have little disposable income and mostly unsecured debt, Chapter 7 is likely the path. If you’re behind on a mortgage or car loan and need to catch up, Chapter 13 is your solution. A good local attorney will walk you through the pros and cons of each for your specific life in San Mateo.
How long does it stay on my credit report?
A Chapter 7 bankruptcy will be on your credit report for 10 years from the filing date, and a Chapter 13 for 7 years. But its impact on your ability to get credit diminishes significantly over time, especially if you take active steps to rebuild.
Look, if you’re in San Mateo and you’re lying awake at night staring at the ceiling, worried about debt, just start by having a confidential conversation. It costs nothing to get the facts and understand your options. The relief my clients feel isn’t just financial; it’s emotional. It’s that deep breath in the courthouse hallway. And that’s a feeling everyone deserves.