Montebello Chapter 13 Bankruptcy Lawyer
Montebello homeowners and working families who are behind on a mortgage or car loan, but still have a steady paycheck, are usually deciding between giving up property and finding a way to keep it. Wadhwani & Shanfeld is a consumer bankruptcy and debt relief law firm that handles Chapter 7, Chapter 13, debt settlement, foreclosure defense, wage garnishment, and creditor lawsuits for clients across Los Angeles County and greater Southern California. If you are searching for a Montebello Chapter 13 bankruptcy lawyer, the question underneath is probably simple: can I stop this and keep what I have?
For many people, Chapter 13 is exactly that tool. It does not wipe the slate clean the way Chapter 7 does. Instead, it gives you three to five years to repay what you can afford through one monthly plan payment, while the court shields you from collection in the meantime. Missed mortgage payments can be spread out and caught up over the life of the plan, and creditors are bound by the terms once the court confirms it.
The right chapter depends on your income, your equity, and what you are trying to protect. We will tell you honestly if Chapter 13 is not the best fit, because a plan that does not match your budget is a plan that fails.
Why Choose Wadhwani & Shanfeld for Chapter 13 Cases
Together the firm’s attorneys bring more than 90 years of combined legal experience to clients throughout Los Angeles, Orange, Riverside, and San Bernardino Counties. You can speak directly with an attorney from your first call, consultations are free, and the entire case can be handled by phone, email, video, or online chat if you would rather not travel.
Raj Wadhwani, founding shareholder and partner, is a Southwestern Law School graduate who 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, founding shareholder and partner, earned his law degree from 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.
That depth matters in Chapter 13 because the case is not over when you file. A plan has to be feasible, the trustee and creditors may object, and your budget has to hold for years. The firm files in every division of the U.S. Bankruptcy Court for the Central District of California, and when a foreclosure sale, garnishment, or repossession is days away, we move fast to get the case on file.
Situations That Lead Montebello Residents to Chapter 13
- Behind on the Mortgage: Chapter 13 lets you fold missed payments into the plan and catch up over time while staying current going forward, which is often the only workable way to save a home after months of arrears.
- A Scheduled Foreclosure Sale: Filing triggers the automatic stay and halts the sale. A notice of default does not mean the house is gone, and the plan gives you a structured route back to current.
- Too Much Income for Chapter 7: If your household income exceeds the California median on the means test, Chapter 7 may be closed to you, and Chapter 13 becomes the practical path to relief.
- Home Equity Beyond the Exemption: Homeowners with substantial equity can use Chapter 13 to keep the property, because the plan must pay unsecured creditors at least what they would have received in a liquidation.
- Car Loans and Repossession: A pending repossession can be stopped, and a car loan can often be restructured inside the plan so you keep the vehicle you need to get to work.
- Back Taxes and Support Arrears: Priority debts such as certain income taxes and domestic support arrears cannot be erased in Chapter 7, but Chapter 13 lets you pay them over the plan period without collection pressure.
- Wage Garnishment: A garnishment from a judgment stops when the case is filed, which can return a meaningful part of your paycheck to you right away.
- Unsecured Second Mortgage: In some cases a second mortgage that is wholly unsecured by the home’s value can be stripped off, removing the lien entirely.
What to Do Right Now if You Are Considering Chapter 13
Start by gathering what is actually in front of you: the most recent mortgage statement, any notice of default or notice of sale, recent pay stubs, your last couple of tax returns, and every collection letter or court paper you have received. If you have been served with a lawsuit, note the date, because a response deadline is running whether or not you do anything.
If a foreclosure is underway, the dates matter a great deal. In California, a sale cannot be set until at least three months and 20 days after the notice of default is recorded. The notice of sale must be mailed and posted on the property at least 20 days before the sale. You can reinstate a monetary default by paying what is owed up until five business days before the sale. Once the notice of sale is recorded you are on a short clock, so do not wait to call.
Repossession has its own timing. A lender generally must give at least 15 days’ written notice before selling a repossessed vehicle, and 20 days if the notice is mailed from or to an address outside California. You can ask in writing for an extension of the redemption period by 10 days. Do not sign over a vehicle or agree to a payment plan with a creditor before you have talked to an attorney.
Montebello sits in Los Angeles County, and bankruptcy cases are filed in the U.S. Bankruptcy Court for the Central District of California. The debtor’s street address zip code determines which division handles the case, and the court’s online Court Locator confirms it. We take care of that determination and the filing itself. Creditor lawsuits in the county are heard in the Los Angeles County Superior Court, and filing bankruptcy halts those cases through the automatic stay.
The most common mistake is waiting until the sale date is a few days out. Chapter 13 can often still be filed in time, but a rushed filing leaves less room to build a careful plan. The second most common is stopping mortgage or car payments without a plan, or paying one creditor heavily while others pile up. Talk to us first, and keep making the payments that protect your property until we advise otherwise.
How a Chapter 13 Plan Is Built and Confirmed
A Chapter 13 plan starts with your budget. We list your income, necessary living expenses, and every debt, then determine how much you can pay each month. The length of the plan, three to five years, is driven largely by whether your income is above or below the California median for your household size and by how much you need to pay to cure arrears and satisfy priority debts.
The plan has to treat different kinds of debt differently. Secured debts you want to keep, such as a mortgage in arrears, are caught up through the plan. Priority debts like recent income taxes and support arrears must be paid in full. Remaining unsecured debts, including credit cards and medical bills, receive whatever your disposable income and the liquidation test require, and the unpaid balance is typically discharged when you finish.
After filing, you attend a meeting of creditors with the trustee, and the court holds a confirmation hearing. Creditors and the trustee can object, and answering those objections is where experienced bankruptcy counsel earns its keep. Plan payments are usually made to the trustee each month, sometimes by payroll deduction.
Keeping Your Property: California’s Two Exemption Systems
California has opted out of the federal exemption scheme, so filers choose between two state systems for the whole case. One is the traditional system under CCP section 704, which includes a homestead exemption tied to local home prices, adjusted annually with a statutory floor and ceiling. The other, under section 703.140(b), has smaller dollar amounts but a flexible wildcard that can cover property of any kind.
In Chapter 13 you generally keep your property regardless, but exemptions still shape the plan, because the amount creditors would have received in a Chapter 7 liquidation sets a minimum you must pay. A homeowner with large equity and a renter with little property often land on different systems. To use California’s exemptions, you must have lived in the state at least 730 days. Picking the wrong system can cost you money for years, which is why we make that decision carefully for every client.
Common Questions About Chapter 13 Bankruptcy in Montebello
How quickly does Chapter 13 stop a foreclosure or garnishment?
Immediately upon filing. The automatic stay takes effect the moment the petition is filed, halting foreclosure proceedings, lawsuits, wage garnishments, bank levies, and repossessions. In emergencies we can often prepare and file quickly to stop a sale or levy.
How long does a Chapter 13 plan last?
Three to five years. Your income relative to the California median and the amount of arrears and priority debt you must pay generally determine the length.
Can I keep my house in Chapter 13?
Most clients who file Chapter 13 to save a home do keep it, provided they stay current on post-filing mortgage payments and make the plan payments. Missed pre-filing payments are spread over the plan rather than due all at once.
What if I cannot afford my plan payment?
Tell us early. A plan can sometimes be modified if your income drops or expenses rise, and in some circumstances the case can be converted to Chapter 7. Falling silent is what causes dismissal.
Will I lose my car in Chapter 13?
Not if the plan is built around keeping it. A car loan can be addressed within the plan, and filing stops a pending repossession. We review the loan terms to see what makes sense.
Which debts does Chapter 13 handle that Chapter 7 does not?
Chapter 13 gives you a way to repay priority debts such as certain recent income taxes and support arrears over time, and to cure mortgage and car loan defaults. It is also available when your income is too high to pass the Chapter 7 means test.
Can a garnished paycheck be recovered after I file?
Filing stops the garnishment going forward. Ordinary judgment garnishments in California are capped at the lesser of 20 percent of weekly disposable earnings or a formula tied to the minimum wage, and bankruptcy ends them altogether while your case is open. Ask us about any amounts already taken before filing.
Does a collection lawsuit on an old debt change my options?
It can. For written contract debt, California generally allows four years to sue, and two years for oral contracts, but the expired deadline is a defense you must raise in a written answer or a court may still enter judgment. A payment on a time-barred debt does not revive it. Bring any court papers to us before your response deadline passes.
If a creditor already has a judgment against me, will Chapter 13 help?
Often yes. A California money judgment is enforceable for 10 years and can be renewed in limited circumstances, so it can follow you for a long time. Bankruptcy halts enforcement through the stay, and depending on the facts, certain judgment liens can be addressed in the case.
Will my employer find out I filed Chapter 13?
Not automatically. They may learn if they are a creditor, if a garnishment has to stop, or if plan payments are taken from your paycheck. Federal and California law prohibit firing you solely because you filed for bankruptcy.
Can a debt collector be held accountable for harassment while I am deciding?
Possibly. California’s Rosenthal Act covers original creditors as well as collection agencies, allows recovery of actual damages and, for willful and knowing violations, an additional penalty, and lets a prevailing consumer recover attorney fees. The suit deadline is one year, so tell us about any abusive calls or tactics.
Do I have to come into an office to file?
No. We handle cases fully by phone, email, video, and online chat, and 100% virtual consultations are available.
Serving Montebello and Surrounding Chapter 13 Clients
Wadhwani & Shanfeld represents Chapter 13 clients in Montebello and throughout Los Angeles County. From Montebello we regularly help families in Commerce, Pico Rivera, Whittier, and the neighborhoods east of downtown Los Angeles, and we serve clients across the greater Los Angeles area, including Hollywood, Inglewood, Compton, and Torrance. In the San Fernando Valley, we work with clients in Van Nuys, Sherman Oaks, Encino, Woodland Hills, Reseda, Northridge, Granada Hills, North Hollywood, North Hills, Mission Hills, San Fernando, and Sylmar, as well as on the Westside in Santa Monica.
Further out, we serve the Antelope Valley communities of Lancaster, Palmdale, and Acton, along with Santa Clarita. In the southern part of the county and into Orange County, we represent clients in Long Beach, Lakewood, Norwalk, Bellflower, Paramount, Gardena, Cerritos, Cypress, Signal Hill, Huntington Park, 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 the Inland Empire and eastern San Gabriel Valley, our reach includes Pomona, Claremont, Glendora, West Covina, Chino, Chino Hills, Montclair, Upland, Rancho Cucamonga, Ontario, Fontana, San Bernardino, Riverside, and the Coachella Valley.
Talk to a Montebello Chapter 13 Attorney Today
If a foreclosure date, garnishment, or repossession is bearing down on you, or you simply want to know whether a repayment plan could let you keep your home, a Montebello Chapter 13 attorney at Wadhwani & Shanfeld can walk through your numbers with you. Call for a free consultation and speak directly with an attorney. We will explain your options inside and outside of bankruptcy and tell you honestly which path gives you the best chance of keeping what matters and finishing with a fresh start.
