Pico Rivera Chapter 13 Bankruptcy Lawyer
Keeping your house, catching up on a missed mortgage or car loan, and replacing a pile of creditor demands with one payment you can actually make is what most people are after when they look into a Pico Rivera Chapter 13 bankruptcy lawyer. Wadhwani & Shanfeld is a consumer bankruptcy and debt relief law firm that handles Chapter 13 and Chapter 7 cases, foreclosure defense, wage garnishment, creditor lawsuits, and IRS tax debt for individuals and families in Pico Rivera and throughout Los Angeles County and Southern California.
Chapter 13 works differently from the bankruptcy most people have heard about. Nothing is wiped out on day one. Instead, you propose a plan to the court that runs three to five years, you pay what your income allows toward your debts through a single monthly payment, and once the court confirms the plan, your creditors are bound by it. For a Pico Rivera homeowner who fell behind after a reduction in hours, a medical emergency, or a divorce, the plan can stretch missed mortgage payments across the life of the case while you keep making the regular payments going forward. The filing itself triggers the automatic stay, which halts foreclosure proceedings, wage garnishments, bank levies, and collection lawsuits the moment the petition is filed.
Why Choose Wadhwani & Shanfeld for Chapter 13 Cases
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, a designation held by a small fraction of attorneys nationally. Between them, the firm’s lawyers bring more than 90 years of combined legal experience to consumer bankruptcy. The firm serves clients across Los Angeles, Orange, Riverside, and San Bernardino Counties, files in every division of the U.S. Bankruptcy Court for the Central District of California, and lets clients handle their case by phone, email, video, or online chat, with 100% virtual consultations available.
Raj Wadhwani, a founding shareholder and Board-Certified Specialist in Consumer Bankruptcy, 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, also a founding shareholder and Board-Certified Specialist, earned his law degree from the University of Southern California and has handled more than 10,000 bankruptcy cases over three decades. That depth matters in Chapter 13 in particular, because the case is not over when the petition is filed. A plan has to be built on accurate income and expense figures, confirmed by the court over any objection from the trustee or a creditor, and then sustained for years. Lawyers who have seen thousands of plans know where trustees push back and how to structure a plan so it gets confirmed.
You speak to an attorney from your very first call, not a screener, and the firm acts quickly when a garnishment, foreclosure sale, or repossession is only days away. The consultation is free, and the recommendation you get is based on your income, property, and goals. Because the firm also handles debt settlement, loan modification, and IRS representation, you are told honestly when Chapter 13 is not the best fit.
Situations That Point Toward Chapter 13 for Pico Rivera Filers
- Mortgage Arrears and a Pending Foreclosure: If you have missed payments and received a notice of default or notice of sale, Chapter 13 lets you cure the arrears over the plan period while keeping the home. Filing stops the sale as soon as the petition is on file.
- Income Above the Chapter 7 Means Test: Chapter 7 eligibility compares your household income to the California median for your household size. Filers who are over the line often find Chapter 13 is the available route to bankruptcy relief.
- Home Equity Beyond the Exemption: Pico Rivera homeowners with significant equity may worry that a Chapter 7 trustee could sell the property. In Chapter 13 you keep your assets, and the plan must pay unsecured creditors at least what they would have received in a liquidation.
- Car Loans and Repossession: When a lender is threatening to repossess a vehicle you rely on to get to work, a plan can bring the loan current and restructure how the balance is paid.
- Priority Tax Debt and Support Arrears: Debts that Chapter 7 cannot eliminate, including certain recent income taxes and past-due support, can be paid through the plan over time without penalties continuing to pile up on them.
- Wage Garnishment and Judgment Creditors: A garnishment on an ordinary judgment can take a large share of each paycheck. Filing stops most garnishments, and the plan replaces them with a payment structured around your actual budget.
- Wholly Unsecured Second Mortgages: In some cases a second mortgage that has no value behind it, because the first mortgage exceeds the home’s worth, can be stripped off through the Chapter 13 plan.
- Self-Employed and Small Business Owners: Business owners with irregular income but steady overall earnings often use Chapter 13 to reorganize personal debt, including obligations tied to a business that did not work out.
What to Do Right Now if You Are Behind in Pico Rivera
The first move is to find out which deadline is closest, because that determines how fast you need to act. In California, a notice of default starts a clock, and the sale date cannot be set until about three months and 20 days after that notice is recorded. The notice of sale must be mailed and posted on the property at least 20 days before the sale. You also have the right to reinstate a monetary default until five business days before the sale, but a Chapter 13 filing can be made at any point before the sale actually happens, which is why gathering your paperwork early matters more than waiting to see whether the lender backs off. If the sale is postponed by at least 10 business days, the lender must give you written notice of the new date within five business days of the postponement. Collect the notice of default, any notice of sale, your last two years of tax returns, recent pay stubs, a list of every creditor, and your mortgage and car loan statements before your consultation.
If you have been served with a lawsuit by a collection firm, the response deadline is short and missing it can lead to a default judgment, so call before it passes. In California, the statute of limitations on a written contract debt is four years and on an oral contract debt is two years, but that expired deadline is a defense you must raise in a written answer, and the court can still enter judgment if you do nothing. A payment on a time-barred debt does not revive it, and only a signed written acknowledgment can restart the period. If you are being garnished, the statutory cap on an ordinary judgment is the lesser of 20% of weekly disposable earnings or 40% of the amount your weekly disposable earnings exceed 48 times the minimum hourly wage, with higher multiples for biweekly, semimonthly, and monthly pay periods. Where the local minimum wage is higher than the state minimum, the local rate is used. Your employer cannot fire you because wages are garnished for a single judgment.
For a vehicle, the lender must give at least 15 days’ written notice before selling a repossessed car, extended to 20 days if the notice is mailed from or to an address outside California. On written request, the redemption period is extended by 10 days. A Chapter 13 filing can stop a repossession that has not happened yet, and it can also address a deficiency or loan balance afterward.
Pico Rivera sits in Los Angeles County, and your case is assigned to a division of the U.S. Bankruptcy Court for the Central District of California based on your street address zip code, not a P.O. box. Most of the county is served by the Los Angeles Division, and your attorney will confirm the proper division before filing. After you file, you will attend a meeting of creditors and begin plan payments to the Chapter 13 trustee within the time the court allows, even before the plan is confirmed, so budget for that first payment before you file. Common mistakes include running up credit cards or taking cash advances just before filing, paying back a relative ahead of other creditors, hiding an asset, and filing with a petition preparer who cannot advise you on exemptions or defend you at a confirmation hearing.
Protecting Your Property Under California Exemption Rules
California has opted out of the federal exemption scheme, so you choose between two state systems, and you must use the same one for the entire case. One system, built on the homestead exemption in the Code of Civil Procedure, is generally better for homeowners with equity because the homestead protection is tied to home prices in the county and is adjusted for inflation each year. The other, known as the 703.140(b) system, offers a smaller residence exemption but includes a wildcard that can be applied to any property and often works better for renters or people with little home equity. To use California’s exemptions at all, you must have lived in the state for at least 730 days before filing. Choosing the wrong system can cost you property, so the choice should be made after your attorney has valued everything you own.
Exemptions matter in Chapter 13 even though you are not surrendering property, because the plan has to give unsecured creditors at least as much as they would have received had you filed Chapter 7. The more of your equity that is exempt, the lower that floor is, and the lower your monthly payment can be. This is where careful exemption work translates directly into dollars each month.
Pico Rivera Chapter 13 Bankruptcy Questions Answered
How long does a Chapter 13 plan last?
Plans run three to five years. The length depends largely on your income compared with the California median for your household size and on how much you need to pay to cure arrears and satisfy priority debts.
Will I lose my Pico Rivera home in Chapter 13?
Chapter 13 is designed to let you keep your home. As long as you make the plan payments and stay current on the ongoing mortgage, the missed payments are paid off over time rather than demanded in a lump sum.
Does filing stop a foreclosure sale that is already scheduled?
Yes. The automatic stay takes effect the moment the petition is filed, which halts the sale. If the sale date is close, the firm can often prepare and file quickly.
Can Chapter 13 stop a wage garnishment?
Filing a Chapter 13 stops most garnishments as soon as the case is filed. Your payroll department will receive notice, and your payment is made to the trustee under the plan instead.
What if I make too much money for Chapter 7?
The means test compares your household income to the California median for your household size and then considers your actual expenses. If you do not pass, Chapter 13 is typically the option, with a payment set by what you can afford after allowed expenses.
Do all my debts get paid in full?
No. Priority debts such as certain taxes and support arrears are paid in full through the plan, and secured arrears are cured, but many unsecured debts such as credit cards and medical bills are paid only in part, and any remaining balance is discharged when you complete the plan.
What happens if I miss a plan payment or lose my job mid-plan?
Contact your attorney right away. Depending on the circumstances, the plan can often be modified, a short delay can be arranged, or in some cases the case can be converted to Chapter 7. Ignoring missed payments risks dismissal and the loss of the stay.
Can I get a Chapter 13 if I filed Chapter 7 before?
Yes, subject to waiting periods. You generally must wait four years from a prior Chapter 7 filing to file Chapter 13, and two years between Chapter 13 filings. The dates are counted from filing, so your attorney will check them against your history.
Will I keep my car if I am behind on the loan?
Often yes. The plan can bring a delinquent auto loan current, and in some cases the loan balance itself can be restructured. If the vehicle has already been repossessed, the options narrow, so timing matters.
Can a collector keep harassing me after I file?
No. Once the case is filed, creditors must stop collection activity. California’s Rosenthal Act also gives consumers the right to recover actual damages and, for willful violations, an additional $100 to $1,000, plus attorney fees, against collectors who cross the line, and it covers original creditors as well as third-party collectors.
Is a judgment against me permanent?
A California money judgment is enforceable for 10 years from entry and can be renewed, though recent changes limit renewal to one five-year extension for qualifying medical and personal debt judgments under certain principal amounts. A judgment lien can sometimes be dealt with in bankruptcy, so bring any judgment paperwork to your consultation.
Do I need to come into an office to start?
No. The firm handles Chapter 13 cases entirely by phone, email, video, and online chat for clients anywhere in Southern California, and consultations can be done 100% virtually.
Serving Pico Rivera and Surrounding Southern California Communities
For Chapter 13 clients in Pico Rivera, Wadhwani & Shanfeld represents homeowners and families across the surrounding Los Angeles County communities, including Whittier, Downey, Norwalk, Montebello, Bellflower, Paramount, Huntington Park, Cerritos, Compton, and Inglewood, as well as Gardena, Torrance, Lakewood, Long Beach, and Signal Hill. The firm also works with clients throughout the San Fernando Valley, including Sherman Oaks, Van Nuys, Encino, Woodland Hills, Reseda, Northridge, Granada Hills, North Hollywood, North Hills, Mission Hills, San Fernando, and Sylmar, along with Hollywood, Santa Monica, and the Westside.
Farther out, the firm serves the Inland Empire and eastern San Gabriel Valley, including Pomona, Chino, Chino Hills, Montclair, Claremont, Glendora, West Covina, Ontario, Rancho Cucamonga, Upland, Fontana, San Bernardino, Riverside, and the Coachella Valley. In Orange County, clients come from Anaheim, Santa Ana, Garden Grove, Buena Park, Fullerton, Huntington Beach, Westminster, Costa Mesa, Newport Beach, Tustin, La Habra, Placentia, Mission Viejo, Laguna Niguel, and Cypress. The Antelope Valley, including Lancaster, Palmdale, and Acton, along with Santa Clarita, is covered as well.
Talk to a Pico Rivera Chapter 13 Bankruptcy Attorney Today
If a foreclosure date, a garnishment, or a repossession notice is setting the clock, a Pico Rivera Chapter 13 bankruptcy attorney at Wadhwani & Shanfeld can review your income, property, and debts, explain whether a three-to-five-year plan fits your situation, and tell you plainly if another route would serve you better. Call to schedule a free consultation and speak directly with an attorney, either by phone, by video, or in person, whichever is easier for you.
