Sun Valley Chapter 13 Bankruptcy Lawyer
Chapter 13 is not a smaller version of Chapter 7; it is a repayment plan that a federal court supervises for three to five years, and its real power is that it lets you keep property that other debt solutions cannot protect. Sun Valley Chapter 13 bankruptcy lawyer help matters most for homeowners who have fallen behind on the mortgage, drivers who are behind on a car loan, and workers whose wages are being taken by a judgment creditor. Wadhwani & Shanfeld is a consumer bankruptcy and debt relief law firm that handles Chapter 13 and Chapter 7 cases for individuals and families in Sun Valley and throughout Los Angeles County, Orange County, Riverside County, and San Bernardino County.
In a Chapter 13 case, you propose a plan that folds your debts into one monthly payment, sized to what your income can support. Missed mortgage payments get spread out and cured over the life of the plan rather than demanded in one lump sum. Creditors are bound by the plan once the court confirms it, and the automatic stay that arises when you file halts lawsuits, garnishments, repossessions, and foreclosure proceedings while the plan does its work.
Sun Valley residents file in the San Fernando Valley Division of the U.S. Bankruptcy Court for the Central District of California, which sits in Woodland Hills. Sun Valley is on the court’s list of communities that division serves, and the filing division is ultimately determined by your home zip code, so that is confirmed before anything is filed.
Why Choose Wadhwani & Shanfeld for Chapter 13 Representation
Together the firm’s attorneys bring more than 90 years of combined legal experience to Chapter 13 plans, foreclosure defense, wage garnishment, creditor lawsuits, IRS tax debt, and second mortgage problems for clients across Southern California. You get direct access to an attorney from your first call, and when a garnishment, foreclosure sale, or repossession is days away, the firm acts fast.
Raj Wadhwani, a founding shareholder and partner, is a Board-Certified Specialist in Consumer Bankruptcy and a Southwestern Law School graduate. 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, the same district where Sun Valley filers’ cases are heard. Greg Shanfeld, also a founding shareholder and partner and a Board-Certified Specialist in Consumer Bankruptcy, earned his law degree from the University of Southern California and has handled more than 10,000 bankruptcy cases over three decades.
Those credentials matter in Chapter 13 because the work is judgment-heavy. Someone has to decide whether your budget supports a plan, which exemption system protects the most property, and whether a second mortgage can be removed. The firm files in every division of the Central District, so your case is handled by people who know how the court actually operates. You can work with the firm by phone, email, video, or online chat, and 100% virtual consultations are available. The first consultation is free.
Situations That Lead Sun Valley Homeowners and Workers to Chapter 13
- Mortgage Arrears and Foreclosure: California foreclosure timelines are short. A sale date cannot be set earlier than three months and 20 days after the notice of default is recorded, and a monetary default can be reinstated until five business days before the sale. Chapter 13 lets you stop a scheduled sale and repay the missed payments over the plan instead.
- Car Loans and Repossession: A lender must give at least 15 days’ written notice before selling a repossessed vehicle, and the period is 20 days when the notice is mailed from or to an address outside California. Chapter 13 can keep the car on the road while you catch up.
- Wage Garnishment from a Judgment: An ordinary judgment garnishment is capped at the lesser of 20 percent of weekly disposable earnings or 40 percent of the amount by which those earnings exceed 48 times the minimum hourly wage. Filing stops it entirely, and your employer cannot fire you because of a garnishment on a single judgment.
- Income Above the Chapter 7 Means Test: If your household income is above the California median for your household size, Chapter 7 may not be available, and a plan funded by your actual disposable income becomes the path forward.
- Tax Debt, Support Arrears, and Priority Claims: These debts survive Chapter 7, but a Chapter 13 plan can pay them over time, usually without added collection pressure while the plan is in force.
- Home Equity Above the Exemption: If you have more equity than California’s exemptions cover, Chapter 13 lets you keep the home by paying creditors at least what they would have received in a liquidation.
- Wholly Unsecured Second Mortgages: In some cases the second lien can be stripped off in a Chapter 13 plan, which can lower your housing costs substantially.
- Creditor Lawsuits and Judgments: A suit from a collection firm does not have to end in a bank levy. Bankruptcy halts the case, and a judgment already entered can be addressed through the plan.
What to Do in the First Days After a Foreclosure Notice, Lawsuit, or Garnishment Order
Start by gathering paper. Pull together your most recent pay stubs, your last two years of tax returns, a list of every creditor with approximate balances, your mortgage and car loan statements, and anything you have received from a lender or court, including any notice of default, notice of sale, summons, or levy. The dates on those documents drive the plan. A foreclosure notice tells us how much time remains before the trustee’s sale, and a summons tells us how long you have to respond.
Do not ignore a summons. In California, an expired limitations period on an old debt is a defense you must raise yourself in a written answer, and a court can still enter judgment against you if you stay silent. Written contract and book account debts generally carry a four-year window for suit, and oral contracts two years. A payment on a time-barred debt does not revive it, and only a signed written acknowledgment restarts the clock. If a lawsuit arrives, call before your response deadline passes so we can decide whether to answer, negotiate, or file.
If a sale date or a levy is close, say so on the first call. The automatic stay takes effect the moment the petition is filed, so speed decides how much can be saved. For foreclosure, remember that notice of sale must be mailed and posted at least 20 days before the sale, and that a postponement of at least 10 business days requires written notice of the new date within 5 business days. Those windows are why we move quickly.
Know where your case will be heard. A Sun Valley bankruptcy goes to the San Fernando Valley Division in Woodland Hills, though a creditor lawsuit would be in the Los Angeles County Superior Court. You will attend a meeting of creditors, usually a short session with the Chapter 13 trustee, and you can often handle preparation remotely. Two mistakes to avoid: letting a bank account fill up after a levy notice without understanding that California automatically protects a set amount per judgment debtor in a deposit account, and hiring a petition preparer who cannot choose exemptions or represent you if a trustee objects.
How a Chapter 13 Plan Is Built and What It Can Protect
The plan starts with your budget. We compare your income to your necessary expenses and set a monthly payment you can sustain for three to five years. The length is driven by your income relative to the California median and by what must be paid, such as mortgage arrears and priority debts. Unsecured creditors, like credit cards and medical bills, typically receive whatever is left after those priorities are paid, which is often only a fraction of what is owed. The court then confirms the plan, and creditors are bound by it.
Exemptions decide what you can keep. California has opted out of the federal exemptions, so filers choose between two state systems: the traditional system with a homestead exemption tied to local home prices, and an alternative system with a flexible wildcard that often works better for renters. You must pick one system for the whole case, and you generally must have lived in California long enough to use its exemptions. Choosing between them is among the most consequential decisions in a filing, and it is made after reviewing your equity, vehicles, tools of the trade, and retirement accounts.
Your obligations during the plan are real. You make every payment on time, stay current on new mortgage payments and taxes, and report major changes in income. Fall behind and the case can be dismissed, which ends the protection. The plan can sometimes be modified if your circumstances change, which is why we build in realistic cushions rather than the tightest possible budget. At the end, a discharge eliminates the remaining qualifying balances.
Sun Valley Chapter 13 Questions Answered
How does Chapter 13 stop a foreclosure on my Sun Valley home?
The automatic stay takes effect when the petition is filed, which halts the trustee’s sale. Your plan then spreads the missed payments over three to five years while you stay current on new payments.
Can I file Chapter 13 if I make too much for Chapter 7?
Yes. Chapter 13 is designed for people with steady income, including income above the Chapter 7 means test limits. The plan payment is based on your actual disposable income.
How long does a Chapter 13 plan last?
Plans run three to five years. The length depends on your income compared with the California median and on how much must be repaid, such as mortgage arrears or tax claims.
Will I lose my car in Chapter 13?
Usually not. If you are behind on the loan or facing repossession, the plan can cure the default over time. Note that a lender must give at least 15 days’ written notice before selling a repossessed vehicle.
Can Chapter 13 stop a wage garnishment?
Yes. Filing triggers the automatic stay, which stops most garnishments from the date of filing. Your employer is also barred from firing you because of a garnishment on one judgment.
Which court will hear my case?
Sun Valley falls in the San Fernando Valley Division of the U.S. Bankruptcy Court for the Central District of California. The division is determined by your home zip code, which we confirm before filing.
Can I remove a second mortgage in Chapter 13?
In some cases, yes. If the home is worth less than the first mortgage balance, so the second lien has no value behind it, the second mortgage can sometimes be stripped off and treated as unsecured debt.
What happens to an old debt where the lawsuit deadline has passed?
A time-barred debt is a defense, not an automatic win. You must raise it in a written answer, or a court can enter judgment anyway. A payment does not revive the debt, and only a signed written acknowledgment restarts the clock.
My bank account was levied. Is any money protected?
California automatically protects a set amount in a deposit account for each judgment debtor, and the bank must apply it without your filing a claim. It does not apply to levies for wages owed to others, support, or debts owed to the state.
How long does a creditor’s judgment last, and could one hang over me after Chapter 13?
A California money judgment is enforceable for 10 years and can be renewed. Recent law limits renewal to one time, for five years, on certain medical and personal debt judgments under specified principal amounts. A bankruptcy can address judgments through the plan.
Can a collector violate my rights and owe me money?
Yes. California’s Rosenthal Act covers original creditors as well as third-party collectors. A consumer can recover actual damages plus an additional $100 to $1,000 for willful and knowing violations, and attorney fees if successful. The suit must be filed within one year.
Do I have to come into an office to file Chapter 13?
No. The firm handles cases entirely by phone, email, video, and online chat, and you are welcome to meet in person if you prefer.
Serving Sun Valley and Nearby Chapter 13 Clients Across Southern California
We start with Sun Valley and the surrounding San Fernando Valley, where the court’s San Fernando Valley Division hears cases from neighborhoods like Van Nuys, North Hollywood, North Hills, Mission Hills, Sylmar, San Fernando, Reseda, Northridge, Granada Hills, Encino, Woodland Hills, and Sherman Oaks. From there, our Chapter 13 attorneys represent clients across Los Angeles County, including Los Angeles, Hollywood, Santa Monica, Westside communities, Santa Clarita, Long Beach, Lakewood, Torrance, Compton, Inglewood, and the Antelope Valley communities of Lancaster, Palmdale, and Acton.
The firm also serves Orange County families in Anaheim, Santa Ana, Garden Grove, Buena Park, Fullerton, Huntington Beach, Westminster, Costa Mesa, Newport Beach, Tustin, La Habra, Placentia, Mission Viejo, and Laguna Niguel. In Riverside and San Bernardino Counties, we work with clients in Ontario, Rancho Cucamonga, Upland, Fontana, San Bernardino, Riverside, Chino, Chino Hills, Montclair, Claremont, Pomona, and the Coachella Valley. Throughout the region the goal is the same: a plan built on your income, your property, and your goals.
Talk With a Sun Valley Chapter 13 Bankruptcy Attorney Today
If you are behind on a mortgage, facing a garnishment, or holding a summons you do not know how to answer, a Sun Valley Chapter 13 bankruptcy attorney at Wadhwani & Shanfeld can review your numbers and tell you honestly whether a repayment plan is the right fit or whether another route makes more sense. Call for a free consultation and speak directly with an attorney, or schedule a virtual consultation from home. When a sale date or levy is close, say so right away so the case can be filed in time.
