In light of the current health crisis, we are happy to offer free telephonic consultations. Should you choose to retain our services, we can easily handle the bankruptcy process via telephone and email. We hope that everyone remains safe and healthy during these unprecedented times.
Bankruptcy Attorneys Serving Southern California
Chapter 13

Chapter 13 Bankruptcy in California

Wadhwani & Shanfeld – Helping You Choose the Most Beneficial Financial Solution

At Wadhwani & Shanfeld, we personalize our approach for each individual. When you become our client, our goal — first and foremost — is to find a tailored solution just for you. We are hands-on bankruptcy lawyers who work closely with every client to make sure they receive excellent service and make informed decisions. Get over 75 years' bankruptcy experience and extensive knowledge about bankruptcy filing. If you did not qualify for Chapter 7 bankruptcy, Chapter 13 bankruptcy, also known as reorganization bankruptcy, may be an alternative option.

What Is Chapter 13 Reorganization Bankruptcy?

Chapter 13 bankruptcy, or reorganization bankruptcy, allows the filer to restructure his or her debt into a three to five-year repayment plan. With this option, the filer could end up discharging some debts while obtaining more time to pay off others. Even if a debtor does not pass the qualifying means test required to file for Chapter 7 bankruptcy, there is a good chance that they will be eligible to file under Chapter 13 of the United States Bankruptcy Code.

Filing for reorganization bankruptcy could allow you the second chance you need to turn your financial situation around and to achieve renewed stability and peace of mind.

Chapter 13 bankruptcy can be beneficial for individuals who:

  • Have a monthly income that is too high to qualify for Chapter 7 bankruptcy
  • Want to protect their home from foreclosure
  • Want to preserve assets or property that may be exposed in a Chapter 7 bankruptcy
  • Want to repay tax or other debt through an affordable payment plan

Chapter 13 Debt Limits

Unlike Chapter 7 bankruptcy, in which a person can file for a discharge of unlimited amounts of debt, there are debt limits for individuals with “regular income” under a Chapter 13 plan, which means that it is not the right option for everyone.

Chapter 13 bankruptcy is more complex than Chapter 7 and takes more time because there is an intricate set of rules for how different types of creditors are repaid over the three to five year period. These rules provide debtors with many advantages and can help debtors deal with things like vehicle loans, home mortgages (even second mortgages) income tax liens, unprotected assets, and more. Since there are so many advantages to this type of filing, Congress has imposed certain debt limits.

As of April 1, 2019, debt limits for Chapter 13 bankruptcy have increased to reflect changes in the cost of living. The current debt limit for Chapter 13 filing is $419,275 for unsecured debts and $1,257,850 for secured debts. Every individual’s situation is different, so please contact Wadhwani & Shanfeld for an assessment of your unique financial situation.

How Does Chapter 13 Bankruptcy Stop Foreclosure?

When you file for Chapter 13 bankruptcy, all creditors must stop their collection efforts due to an order called the automatic stay. The creditors in charge of your home cannot conduct a foreclosure sale during an automatic stay. As soon as you file for bankruptcy, foreclosure proceedings must stop. Additionally, Chapter 13 bankruptcy allows you to catch up on missed mortgage payments as part of your repayment plan.

Please note that you must make all the mortgage payments that come due during your Chapter 13 plan on time – even though you are using your repayment plan to pay off delinquent mortgage payments from before bankruptcy. Still, Chapter 13 bankruptcy allows you to reorganize your debt, so your mortgage payments may be lower than they were before you chose to file.

Are There Any Disadvantages to Chapter 13 Bankruptcy?

Yes. Just like other forms of bankruptcy, Chapter 13 bankruptcy stays on your credit report for up to 7 years, which can make it difficult to get loans and credit cards even after your repayment plan is complete.

The repayment plan itself presents another challenge, as some people have trouble completing their plan and must file for a modification or a Chapter 13 hardship discharge. Unlike Chapter 7 bankruptcy, Chapter 13 bankruptcy does not discharge debts, and you may end up paying the majority of your debts throughout the course of your repayment plan. You must pay creditors at least as much as the nonexempt property you keep. For example, you will get to keep your $20,000 luxury wardrobe, but you will have to pay creditors at least this much throughout your repayment plan.

If you truly want a fresh start and qualify for a Chapter 7 bankruptcy, it may be the best option for you. You may also be able to negotiate your debts with creditors and reduce and pay your debts without a repayment plan and outside of Chapter 13 bankruptcy.

As Board-Certified Bankruptcy Specialists, Raj Wadhwani and Greg Shanfeld are committed to finding the best debt relief option in your unique situation. We have experience where it counts, and we are ready to put more than 75 years of knowledge on your side.

Call us at (800) 996-9932 or contact us online to schedule your free consultation today.

Is Chapter 13 Bankruptcy the Right Choice?

Our Southern California bankruptcy attorneys can help you assess your situation and determine if this is the right step for you to take. We are committed to giving each client an individualized response and to making sure that we adequately accommodate their concerns and priorities.

Don't wait any longer to receive the counsel and representation you need. Call Wadhwani & Shanfeld today to discuss details about filing for Chapter 13 bankruptcy. Schedule a free case review to learn more.

Client Testimonials

We've Helped Over 20,000 Satisfied Clients
  • “Very professional, helpful. Would recommend to anyone.”

    - Jose Portillo
  • “5 stars very very helpful. walked me through filing .”

    - Joan Bevis
  • “Very professional, easy process and always available to answer questions, Thank you”

    - Ikram Kacem Nsiri
  • “Wadhwani & Shanfeld was very professional and always answered my questions. We are so grateful for them.”

    - Christopher & Jillian West
  • “I very much liked Raj and his staff and I would give them 100 stars if possible. I was kept informed and very happy with the end results. Thanks again...Steve”

    - Stephen Grossman
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Why Choose Wadhwani & Shanfeld?

The Right Attorney Can Make A Difference
  • Invaluable Bankruptcy Insight

    Attorneys Raj Wadhwani and Greg Shanfeld are Board-Certified Bankruptcy Specialists who leverage their insight on behalf of clients. 

  • Hands-On Guidance

    Our legal team does all of the work for you, including filing paperwork, keeping track of deadlines, and providing protection from creditors.

  • Experience Where it Counts

    Our attorneys have over 65 years of collective experience helping clients in a broad range of bankruptcy and debt settlement cases.

  • A Prolific Record of Success

    Our firm has successfully helped more than 20,000 people put the pieces of their lives back together after a bankruptcy.

Begin Putting the Pieces Back Together

If you're struggling with debt, the most important thing you can do is hire the right attorney. At Wadhwani & Shanfeld, we have successfully filed over 12,000 bankruptcy cases and helped over 20,000 people get back on their feet.