Long Beach Chapter 13 Bankruptcy Lawyer
Wadhwani & Shanfeld is a consumer bankruptcy and debt relief law firm that helps Long Beach families and wage earners reorganize what they owe, stop foreclosures and repossessions, and keep the property they have worked to hold onto. The firm also serves clients throughout Los Angeles County, Orange County, Riverside County, and San Bernardino County. A Long Beach Chapter 13 bankruptcy lawyer spends most of the time on one question: how do you turn a pile of past-due obligations into a single monthly payment that fits the paycheck you actually earn?
Chapter 13 is different from Chapter 7 in a way that matters for homeowners and car owners. It does not wipe out debt in a few months. It gives you three to five years to pay through a court-approved plan, and during that time creditors are bound by its terms. For someone who is behind on a mortgage, owes back taxes that cannot be discharged, or earns too much to pass the Chapter 7 means test, that structure is often the only workable path.
The filing itself triggers the automatic stay, which halts foreclosure proceedings, wage garnishments, bank levies, repossessions, and collection lawsuits the moment the petition reaches the court. Everything after that is about building a plan the court will confirm and that you can sustain for the full term.
Chapter 13 Situations We See Most Often in Long Beach
- Mortgage Arrears and Scheduled Foreclosure Sales: A Chapter 13 plan lets you spread missed mortgage payments over the life of the plan while staying current going forward. Under California’s nonjudicial foreclosure timeline, the earliest a sale can occur is three months and 20 days after the notice of default is recorded, and you can reinstate a monetary default until five business days before the sale. Filing before the sale date stops the sale.
- Income Above the Chapter 7 Means Test: The means test compares your household income to the California median for your household size. Filers who exceed it and cannot pass the expense calculation generally belong in Chapter 13, where the plan is built around disposable income instead.
- Car Loans After a Repossession Notice: California requires at least 15 days’ written notice before a repossessed vehicle is sold, extended to 20 days in certain out-of-state mailing situations. Chapter 13 can stop a repossession in progress and, in some cases, restructure the loan so you keep the vehicle.
- Back Taxes and Support Arrears: Priority debts such as recent income taxes and past-due support are not wiped out in bankruptcy. Chapter 13 lets you pay them in full over the plan without penalties and interest piling up while you do.
- Wage Garnishment From a Judgment: A creditor who wins a judgment can take a portion of your paycheck, capped by statute at the lesser of 20 percent of weekly disposable earnings or a set amount tied to minimum wage. Filing Chapter 13 stops the garnishment and folds the judgment into your plan.
- Home Equity Beyond What Exemptions Protect: In Chapter 7, equity above the exemption can be sold by a trustee to pay creditors. In Chapter 13, you keep the asset and instead pay unsecured creditors at least as much as they would have received in a liquidation.
- Wholly Unsecured Second Mortgages: When your home is worth less than the first mortgage balance, a second mortgage may be stripped off and treated as unsecured debt in the plan, reducing what you owe on the property.
- Debts Too Large for Settlement Alone: Credit card, medical, and personal loan balances that cannot realistically be negotiated down can be consolidated into the plan, often with a portion paid and the remainder discharged at completion.
Why Choose Wadhwani & Shanfeld for Your Chapter 13 Case
Wadhwani & Shanfeld has helped more than 30,000 individuals and families resolve debt, and the firm is led by two Board-Certified Specialists in Consumer Bankruptcy through the American Board of Certification. Between them, the attorneys carry more than 90 years of combined legal experience. The firm handles Chapter 7, Chapter 13, debt settlement, foreclosure defense, wage garnishment, creditor lawsuits, and IRS tax debt for clients in Long Beach and across Southern California.
Raj Wadhwani, a founding shareholder and partner, graduated from Southwestern Law School. He helped pilot the Best Case Bankruptcy software in 1998 and was the first attorney to file a bankruptcy case electronically in the Central District of California. Greg Shanfeld, also a founding shareholder and partner, earned his law degree at the University of Southern California and has handled more than 10,000 bankruptcy cases over three decades. Both are board certified in consumer bankruptcy, a distinction held by a small fraction of attorneys nationally.
For Chapter 13 specifically, that depth matters because the case lives or dies on the plan. The plan has to survive a trustee’s review, satisfy the court’s confirmation requirements, and remain affordable for years. Clients get direct access to an attorney from the first call, plain-English answers from the first consultation through discharge, and fast action when a garnishment, foreclosure sale, or repossession is days away. The firm files in every division of the U.S. Bankruptcy Court for the Central District of California, and cases can be handled fully by phone, email, video, and online chat. Consultations are free, and 100% virtual consultations are available.
What to Do Right Now if You Are Weighing a Chapter 13 Filing
Start by gathering the paperwork a plan is built from: the last several months of pay stubs, recent tax returns, a current mortgage statement showing the arrears, every collection letter and court paper you have received, and a list of your monthly household expenses. The more accurate your income and expense picture, the more realistic the proposed monthly payment will be, and an unrealistic plan is the most common reason Chapter 13 cases fail.
Next, look at your deadlines. If you have received a notice of sale on your home, count back from the sale date; reinstatement rights end five business days before it, and a bankruptcy filing needs to be prepared before the sale occurs. If a vehicle has been repossessed, check the date on the notice of intent to dispose of it. You can request in writing that the seller extend the redemption period by 10 days. If you were served with a lawsuit, the response deadline is separate from any bankruptcy planning and should not be allowed to lapse.
Your residence also determines where you file. Long Beach is in Los Angeles County, and the Central District of California assigns cases by the zip code of your street address through the court’s locator tool, not by where you work or where the creditor sits. Most Long Beach filers are heard in the Los Angeles Division, which sits in downtown Los Angeles, but confirming the zip code before filing avoids a misfiled case. Collection suits against Long Beach residents, by contrast, are typically heard in Los Angeles County Superior Court, which is a separate system from the federal bankruptcy court.
Be careful about the mistakes that cost people the most. Do not pay one creditor in a lump sum just before filing, do not transfer property to relatives, and do not run up new charges. Do not stop making your regular mortgage payment once you decide to file, because the plan assumes you stay current going forward. Finally, do not hand your case to a document preparer; a preparer can type your forms but cannot choose your exemptions, give legal advice, or stand beside you when a trustee objects.
How California Exemptions Shape a Chapter 13 Plan
California has opted out of the federal exemption scheme, so filers choose between two state systems for the entire case: the standard exemptions under CCP Section 704 or the alternative set under Section 703.140(b). The choice is made once and applies to everything you own. Section 704 includes a homestead exemption that is tied to the countywide median home price within a statutory floor and ceiling, adjusted annually. Section 703.140(b) offers much smaller residence and vehicle protection but adds a flexible wildcard that can be applied to any property. Homeowners with real equity usually fit the first system, while renters often fit the second.
To use California’s exemptions at all, you generally must have lived in the state for at least 730 days before filing. Why does this matter in Chapter 13 when you are keeping your property anyway? Because the exemptions set the floor for what unsecured creditors must receive. Under the best-interests test, your plan must pay creditors at least what they would have gotten if a Chapter 7 trustee had liquidated your non-exempt assets. The more of your property that is exempt, the lower that floor, and the lower your monthly plan payment can be.
Chapter 13 and Creditor Lawsuits, Judgments, and Garnishment
A pending lawsuit does not need to be fought to the end before you file. The automatic stay halts it. If a judgment has already been entered, a California money judgment is enforceable for 10 years from entry and can be renewed, which is why a judgment sitting quietly in the background can resurface as a bank levy or paycheck garnishment years later. A Chapter 13 plan can address that judgment alongside your other debts.
On the other side of the ledger, collectors must follow the rules. The Rosenthal Act, which covers original creditors as well as third-party collectors, allows a consumer to recover actual damages and, for willful and knowing violations, an additional award, plus attorney fees. The suit must be brought within one year. Separately, if a debt is old, the limitations period for suing on a written contract is four years, and the expiration is a defense you must raise in a written answer or the court can still enter judgment. A payment on a time-barred debt does not revive it. These issues are worth raising with an attorney before you commit to a plan that pays a debt you may not legally owe.
Long Beach Chapter 13 Questions Answered
How long does a Chapter 13 plan last?
Plans run three to five years. The length depends on your income relative to the California median and on how much you must pay to satisfy priority debts and the best-interests test. Higher-income filers generally need the longer term.
Will I lose my house in a Chapter 13?
Chapter 13 exists largely to let homeowners keep their property. As long as you make the plan payments and stay current on the regular mortgage going forward, the arrears are cured over time and the home is protected from foreclosure.
Does filing stop a foreclosure sale?
Yes. The automatic stay takes effect when the petition is filed and halts the sale. Because a sale date can approach quickly after the notice of sale is mailed and posted at least 20 days in advance, the firm moves fast when a sale is days away.
What debts can a Chapter 13 plan not wipe out?
Most student loans, child support, alimony, and certain recent taxes are not discharged. Priority debts like back support and recent taxes must be paid in full through the plan, though without the interest and collection pressure you faced outside bankruptcy.
Can Chapter 13 stop a wage garnishment?
Yes. Filing stops most garnishments immediately through the automatic stay. California also bars an employer from firing you because wages are garnished for a single judgment, and your employer is not automatically notified of a bankruptcy.
Will my plan payment come out of my paycheck?
Often, yes. Many plans are funded by payroll deduction paid to the trustee, which means your employer may learn of the filing through that deduction. Federal and California law prohibit termination solely because you filed.
What happens if I miss plan payments?
Falling behind can lead the trustee to seek dismissal. Often a plan can be modified if your income drops through job loss or illness, so talk to your attorney before payments lapse rather than after.
Can I file Chapter 13 if I recently received a Chapter 7 discharge?
Yes, with a waiting period. You generally must wait four years after a Chapter 7 filing to file Chapter 13, two years between Chapter 13 filings, and about six years to file a Chapter 7 after a Chapter 13, though that last period can shrink if your plan paid enough to unsecured creditors.
Can I strip off a second mortgage in Long Beach?
If your home is worth less than the balance on the first mortgage, a wholly unsecured second mortgage can be treated as unsecured debt and potentially discharged on completion of the plan. The valuation drives the outcome, so the numbers should be reviewed before you file.
Do I have to come to an office for the case?
No. The firm handles cases fully by phone, email, video, and online chat, and 100% virtual consultations are available. Clients who prefer to meet in person are welcome to do so.
Can I keep my car through a Chapter 13?
Often, yes. The plan can bring a delinquent car loan current over time, and the stay can halt a repossession that is underway. Whether the loan can also be restructured depends on its age and your equity.
Is Chapter 13 or debt settlement a better choice?
It depends on what is at stake. Settlement can reduce debt without a court filing but does not stop a foreclosure or bind all creditors. Chapter 13 provides court protection and a fixed structure. The firm handles both and will recommend based on your situation.
Serving Long Beach and Surrounding Chapter 13 Clients
The firm represents Chapter 13 clients across Long Beach and Los Angeles County, including Lakewood, Signal Hill, Compton, Paramount, Bellflower, Norwalk, Cerritos, Gardena, Torrance, Inglewood, and Huntington Park. Clients also come from the San Fernando Valley and Westside communities, including Sherman Oaks, Van Nuys, Encino, Woodland Hills, Reseda, Northridge, North Hollywood, Granada Hills, Sylmar, San Fernando, Hollywood, and Santa Monica. In northern Los Angeles County, the firm serves Santa Clarita and the Antelope Valley, including Lancaster, Palmdale, and Acton.
Across the county line, the firm works with Orange County homeowners and wage earners in Cypress, La Habra, Buena Park, Fullerton, Anaheim, Santa Ana, Garden Grove, Westminster, Huntington Beach, Costa Mesa, Newport Beach, Tustin, Placentia, Mission Viejo, and Laguna Niguel. In the Inland Empire, it serves Riverside and San Bernardino Counties, including Ontario, Rancho Cucamonga, Upland, Fontana, San Bernardino, Pomona, Chino, Chino Hills, Montclair, Claremont, Glendora, West Covina, Riverside, and the Coachella Valley.
Talk With a Long Beach Chapter 13 Bankruptcy Attorney
If a foreclosure sale, repossession, or garnishment is closing in, or if you simply want to know whether a three-to-five-year plan could get you out from under what you owe, speak with a Long Beach Chapter 13 bankruptcy attorney at Wadhwani & Shanfeld. Call for a free consultation and talk directly with an attorney who will review your income, property, and debts, explain your options inside and outside of bankruptcy, and tell you plainly whether Chapter 13 is the right fit. You can meet in person or handle your entire case remotely, whichever works better for you.
