Granada Hills Chapter 13 Bankruptcy Lawyer
A Chapter 13 case for a Granada Hills homeowner is filed with the bankruptcy court that covers the San Fernando Valley, and that court’s rules, the local trustee’s expectations, and California’s exemption rules shape everything from your monthly payment to whether you keep your house. Wadhwani & Shanfeld is a consumer bankruptcy and debt relief law firm that handles Chapter 13 cases for individuals and families across Los Angeles County and throughout Southern California, and a Granada Hills Chapter 13 bankruptcy lawyer from our team can tell you quickly whether a repayment plan fits your situation.
Most people who search for Chapter 13 are not looking for a lecture on bankruptcy theory. They want to know three things: can I stop the foreclosure, can I keep my car, and how much will I pay each month? Chapter 13 answers those questions differently than Chapter 7 does. Instead of wiping out debts and selling nonexempt property, you propose a plan to repay some or all of what you owe over three to five years, out of your income. Creditors are bound by that plan once the court confirms it, and while the plan is in place, the automatic stay keeps collectors, garnishments, and lawsuits at bay.
That structure suits Granada Hills well. The neighborhood is full of long-time homeowners who bought years ago, built equity, and then hit a rough patch: a layoff, a medical event, a business slowdown, a divorce. Those households often have too much income or too much home equity for a clean Chapter 7, and too much to lose to simply walk away. A Chapter 13 plan lets you catch up on a missed mortgage over time and keep the home.
Why Choose Wadhwani & Shanfeld for Chapter 13 in Granada Hills
Raj Wadhwani and Greg Shanfeld are the firm’s founding shareholders and partners, and together with their team they bring more than 90 years of combined legal experience to cases across Los Angeles, Orange, Riverside, and San Bernardino Counties. Chapter 13 is a long commitment, and the quality of the plan on day one decides whether you finish it, so that depth matters.
Raj Wadhwani, a Southwestern Law School graduate, 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, who earned his law degree at the University of Southern California, has handled more than 10,000 bankruptcy cases over three decades. The firm files in every division of the U.S. Bankruptcy Court for the Central District of California, which includes the division that hears Granada Hills cases.
Clients reach an attorney directly from the first call, not an intake script. When a foreclosure sale or a garnishment is days away, the firm acts fast, and you can handle the whole case by phone, email, video, or online chat, including a 100% virtual consultation. The first consultation is free. We also look at the alternatives, such as Chapter 7, debt settlement, or loan modification, and will tell you plainly if Chapter 13 is not the right tool.
Situations Where a Granada Hills Chapter 13 Plan Makes Sense
- Behind on the Mortgage: Chapter 13 lets you cure missed payments through the plan while staying current going forward, which is often the strongest way to stop a pending foreclosure and keep the house.
- Income Above the Chapter 7 Means Test: If your household income is above the California median for your household size and your allowed expenses do not close the gap, Chapter 13 is often the route that remains open.
- Home Equity Beyond the Exemption: California’s homestead protection is substantial, but if your equity exceeds it, Chapter 7 could put the house at risk. A Chapter 13 plan protects the property, provided your unsecured creditors receive at least what they would have gotten in a liquidation.
- Tax Debt and Support Arrears: Priority debts like recent income taxes and past-due support generally survive Chapter 7. Chapter 13 lets you pay them off in installments without interest and penalty pressure from collectors during the plan.
- Car Loans in Trouble: If you are behind on a vehicle loan, or a repossession notice has arrived, a plan can bring the loan current or restructure how it is paid.
- Wage Garnishment and Creditor Judgments: A judgment creditor can take a slice of each paycheck. Filing stops most garnishments immediately and folds the judgment into the plan.
- Second Mortgage Problems: In some cases a wholly unsecured second mortgage can be stripped off in Chapter 13, removing that lien from the property.
- Prior Bankruptcy Filings: Waiting periods apply after earlier cases, and Chapter 13 is sometimes available when a new Chapter 7 is not yet allowed.
What to Do Now if You Are Considering Chapter 13 in Granada Hills
Start with the dates on your paperwork. If you have a notice of default on your mortgage, California law sets a sequence: a sale date cannot be set until roughly three months and 20 days after the notice of default is recorded, the notice of sale must be mailed and posted at least 20 days before the sale, and you can reinstate a monetary default until five business days before the sale. If a sale date is on the calendar, call an attorney immediately; filing before the sale triggers the automatic stay and halts it.
Next, gather your documents: recent pay stubs, tax returns, bank statements, your mortgage and loan statements, a list of every creditor, and any lawsuit papers or garnishment notices. If a collector has sued you, do not ignore the summons. A missed response deadline can lead to a default judgment, and a judgment is what opens the door to bank levies and wage garnishment. If your vehicle has been repossessed, the lender must send written notice at least 15 days before selling it, and you can ask in writing to extend the redemption period by 10 days. A deficiency claim generally depends on that notice being sent on time and containing the required items.
One question people overlook is where the case will be filed. The debtor’s street address determines the division, and Granada Hills falls within the San Fernando Valley Division of the U.S. Bankruptcy Court for the Central District of California, which sits in Woodland Hills. Your attorney handles the filing, but you will attend the meeting of creditors, and knowing the court is local to the Valley tends to make the process feel less intimidating.
Avoid the common mistakes. Do not pay one creditor in full just before filing, do not transfer property to relatives, and do not run up new charges. Do not skip mortgage payments in the months before you file thinking it will not matter. And do not rely on a petition preparer to pick your exemptions; a mistake there can cost you property. After filing, your first plan payment is generally due within 30 days, and keeping up with it is the single most important thing you can do.
How Chapter 13 Plans Are Built and Confirmed
Your plan length is set by your income. If your income is below the California median for your household size, the plan generally runs three years, though it can be extended to five when needed. If your income is above the median, the plan generally runs five years. The payment is calculated from your disposable income, the amount you are catching up on a mortgage or car loan, priority debts like taxes, and what your unsecured creditors must receive under the “best interest of creditors” test. That test is where your exemptions matter: the more of your property California law protects, the less you owe unsecured creditors through the plan.
California does not use the federal exemption list. Filers choose between two state systems, one built around the homestead, which suits most homeowners, and the other with a smaller residence amount and a flexible wildcard, which sometimes works better for renters or people with little equity. You must pick one system for the whole case, and you generally need to have lived in California for 730 days to use them. The homestead amount is tied to the county’s median home price within a floor and cap and is adjusted for inflation, so we confirm the current numbers at the time of filing rather than relying on an old figure.
After you file, a trustee reviews the plan, you attend the meeting of creditors, and the court holds a confirmation hearing. Once confirmed, the plan binds your creditors. You make payments to the trustee, who distributes them. At the end, a discharge eliminates what remains of the debts the plan covered. If life changes mid-plan, such as a job loss, there are options like modifying the plan or, in some cases, converting to Chapter 7, so a hard stretch does not have to end the case.
Chapter 13 Questions From Granada Hills Homeowners
Can Chapter 13 really stop a foreclosure on my Granada Hills home?
Yes. The automatic stay takes effect the moment the petition is filed and halts the foreclosure sale. Chapter 13 then lets you repay the missed payments over the life of the plan while you stay current on new ones. The filing must come before the sale happens, which is why a pending sale date calls for an immediate phone call.
How long does a Chapter 13 case last?
Three to five years, depending on your income relative to the California median for your household size and how much you need to catch up or repay. Some people finish earlier by paying off the plan in full.
Will I keep my house and my car?
That is the main purpose of Chapter 13 for most filers. As long as you make your plan payments and stay current on ongoing mortgage and car payments, you keep your property. Chapter 13 can also protect equity that would be at risk in Chapter 7.
How much will my monthly payment be?
It depends on your disposable income, the arrears on secured debts, priority debts like taxes, and how much your unsecured creditors are entitled to receive. We run the numbers in your consultation so you can see the payment before you decide.
What happens to my credit card and medical debt in Chapter 13?
These unsecured debts are repaid only to the extent the plan requires, often just a portion, and the balance is discharged when you finish. Creditors cannot keep calling or suing you during the case.
Can Chapter 13 stop a wage garnishment?
Yes. Filing stops most garnishments right away through the automatic stay. California’s ordinary garnishment formula caps what a creditor can take, but a bankruptcy filing halts it entirely while your plan is in effect, and the judgment is addressed within the plan.
What if a creditor has already won a judgment against me?
A California money judgment is enforceable for 10 years and can sometimes be renewed, so it will not simply disappear. Chapter 13 can treat the judgment within your plan, and in some cases a judgment lien on your home can be dealt with as part of the case.
Can I file Chapter 13 if I recently received a Chapter 7 discharge?
Possibly. You must generally wait 4 years to file Chapter 13 after a Chapter 7, though the waiting period is different in other sequences, such as 2 years between Chapter 13 filings. We check your filing history and dates before recommending a path.
What if I miss payments during my plan?
Contact your attorney right away. A missed payment can lead the trustee to seek dismissal, but there are often fixes: a modified plan, a temporary adjustment, or in some cases a switch to another chapter. Waiting until the trustee files a motion limits your choices.
Can my employer fire me for filing Chapter 13?
No. California and federal law prohibit an employer from firing you solely because you filed for bankruptcy. Your employer is not automatically notified, though plan payments can be deducted from your paycheck, which sometimes alerts payroll.
Is Chapter 13 worth it if I could file Chapter 7 instead?
Sometimes the answer is Chapter 7, and we will say so. Chapter 13 is usually worth the longer commitment when you are behind on a mortgage, have equity you need to protect, owe priority debts, or fail the means test. We compare both chapters against your actual numbers.
Do I have to come into the office to file?
No. We handle cases fully by phone, email, video, and online chat for clients across Southern California, including consultations that are entirely virtual.
Serving Granada Hills Chapter 13 Clients Across the San Fernando Valley and Beyond
Our work for Granada Hills homeowners reaches the surrounding Valley neighborhoods, including Northridge, Mission Hills, North Hills, Sylmar, San Fernando, Reseda, Encino, Woodland Hills, Van Nuys, Sherman Oaks, and North Hollywood. Many of these communities are served by the same San Fernando Valley bankruptcy division, so families in Northridge or Sylmar face the same local procedures as those in Granada Hills. We also serve clients in Hollywood, Santa Monica, and across the Westside.
Beyond the Valley, we represent clients throughout Los Angeles County, including Santa Clarita, Long Beach, Lakewood, Torrance, Compton, Inglewood, Gardena, Norwalk, Bellflower, Paramount, Cerritos, Signal Hill, Huntington Park, and the Antelope Valley communities of Lancaster, Palmdale, and Acton. In the Inland Empire and eastern San Gabriel Valley we help families in Ontario, Rancho Cucamonga, Upland, Fontana, San Bernardino, Pomona, Chino, Chino Hills, Montclair, Claremont, Glendora, West Covina, Riverside, and the Coachella Valley. In Orange County, we serve Anaheim, Santa Ana, Garden Grove, Buena Park, Fullerton, Huntington Beach, Westminster, Costa Mesa, Newport Beach, Tustin, La Habra, Placentia, Mission Viejo, and Laguna Niguel.
Talk With a Granada Hills Chapter 13 Bankruptcy Attorney Today
If a mortgage default, a lawsuit, or a garnishment is closing in, you do not have to guess whether a repayment plan is right. A Granada Hills Chapter 13 bankruptcy attorney at Wadhwani & Shanfeld will review your income, your equity, and your deadlines, explain every option inside and outside of bankruptcy, and tell you honestly what will work. Call today for a free consultation and speak directly with an attorney, in person or by video from home.
