Burbank Chapter 13 Bankruptcy Lawyer
The goal in a Chapter 13 case is rarely just to survive a bad stretch; it is to keep the house, the car, and the paycheck while paying creditors on terms you can actually meet. Wadhwani & Shanfeld, a consumer bankruptcy and debt relief law firm, helps Burbank residents and homeowners across Los Angeles County reorganize their debts through a court-confirmed repayment plan, and handles cases for clients throughout Southern California.
A Burbank Chapter 13 bankruptcy lawyer is most useful to people who have something worth protecting and a steady income to protect it with. That describes many households in this part of the San Fernando Valley: homeowners who fell behind on a mortgage after a job interruption, people whose income runs above the Chapter 7 means test, and filers carrying tax or support arrears that Chapter 7 cannot wipe out. Chapter 13 gives you three to five years to catch up on what you owe while the automatic stay holds back foreclosure, repossession, garnishment, and lawsuits.
How a Chapter 13 Case Works for Burbank Filers
Burbank filers file in the San Fernando Valley Division of the U.S. Bankruptcy Court for the Central District of California, which sits in Woodland Hills. The court assigns your case based on the zip code of your street address, not a P.O. box, so confirming the division before filing matters. Our firm files in every division of the Central District, so the paperwork lands in the right place.
The case begins with a petition, schedules of income, expenses, assets, and debts, and a proposed repayment plan. From the moment the petition is filed, the automatic stay takes effect. Creditors must stop collection calls, suits, bank levies, wage garnishments, repossessions, and foreclosure proceedings. Shortly afterward you attend a meeting of creditors, where the trustee asks questions about your finances under oath. The court then holds a confirmation hearing on your plan. Once the plan is confirmed, it binds your creditors, and you make a single monthly payment to the trustee, who distributes the money according to the plan.
The plan runs three to five years. What decides the length is largely your income and what has to be paid. If your income is above the California median for your household size, the plan generally runs longer. Priority debts such as certain taxes and support arrears must be paid in full through the plan, while general unsecured debts like credit cards and medical bills are paid only what your disposable income and the value of your non-exempt property require. Many unsecured creditors receive a fraction of what they are owed.
Why Choose Wadhwani & Shanfeld for Chapter 13 Representation
Wadhwani & Shanfeld is a consumer bankruptcy and debt relief firm that has helped more than 30,000 individuals and families across Southern California, including clients in Burbank, Glendale-area neighborhoods, the San Fernando Valley, and the rest of Los Angeles, Orange, Riverside, and San Bernardino Counties. The firm is led by two Board-Certified Specialists in Consumer Bankruptcy through the American Board of Certification, and the team carries more than 90 years of combined legal experience.
Raj Wadhwani, a 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. That familiarity with the court’s filing systems matters in Chapter 13, where accuracy in schedules and plan math directly affects whether a plan is confirmed. Greg Shanfeld, also a 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 Specialists, a credential held by a small fraction of attorneys.
For a Chapter 13 client, the practical differences are access and speed. You get direct access to an attorney from your first call, a free consultation, and fast action when a foreclosure sale, garnishment, or repossession is only days away. The firm handles cases fully by phone, email, video, and online chat, and offers 100% virtual consultations, so a Burbank commuter or a shift worker does not have to rearrange a workday to get started. Each plan is built around your income, your property, and your goals rather than a one-size-fits-all filing, with explanations in plain English from the first consultation through discharge.
Situations That Point Toward Chapter 13
- Mortgage Arrears and Foreclosure: A missed-payment history can be cured over the plan term while you keep making current payments. Under California’s nonjudicial foreclosure timeline, the earliest sale date is three months and 20 days after the notice of default is recorded, and the notice of sale must be mailed and posted at least 20 days before the sale. Filing before the sale date stops it.
- Income Above the Chapter 7 Means Test: If your household income exceeds the California median for your family size and your allowed expenses do not bring you under the test, Chapter 13 is often the path that remains open.
- Home Equity Beyond the Exemption: In Chapter 7, equity above the homestead exemption can be at risk. Chapter 13 lets you keep the property, with the plan paying unsecured creditors at least what they would have received had the non-exempt equity been liquidated.
- Tax Debt and Support Arrears: Priority debts that survive Chapter 7 can be paid over time through the plan without penalties accumulating on the portion the plan handles.
- Car Loans and Repossession: A plan can bring a delinquent auto loan current and, in some cases, adjust how the loan is paid, which can stop a repossession in progress.
- Wholly Unsecured Second Mortgages: When the home is worth less than the first mortgage balance, a second mortgage can sometimes be stripped off and treated as unsecured debt under the plan.
- Wage Garnishment and Judgments: A garnishment on a judgment stops when the case is filed, and the plan can address the underlying debt, with a repayment structure that fits your actual take-home pay.
- Prior Bankruptcy Filings: Waiting periods may bar Chapter 7, but Chapter 13 is often available sooner, including 4 years after a Chapter 7 and 2 years after a prior Chapter 13.
What to Do If You Are Weighing a Chapter 13 Filing
Start by gathering what a bankruptcy attorney needs to evaluate a plan: recent pay stubs, tax returns, a list of every creditor, your mortgage and car loan statements, and any notices you have received. If a foreclosure is underway, find the date on the notice of default or notice of sale. A monetary default can generally be reinstated until five business days before the sale date, but a bankruptcy filing can stop the sale even after that window closes, so do not assume the clock has run out.
Pay attention to lawsuit deadlines. If a creditor has sued you in Los Angeles County Superior Court, a response is due by the deadline on the summons, and ignoring it risks a default judgment, which can lead to wage garnishment and bank levies. A bankruptcy filing halts the suit, but it is better to call before the response deadline passes so your attorney can decide whether to answer, negotiate, or file. If your wages are already being garnished, remember that ordinary garnishment is capped by statute, and that an employer cannot fire you because of a garnishment on a single judgment.
Protect your bank account and avoid favoring one creditor. Paying a relative back or settling one debt in full shortly before filing can create problems in the case. Do not move assets or transfer property without talking to an attorney first. Equally important, do not stop paying your current mortgage or car payment because you plan to file; a Chapter 13 plan assumes you are staying current going forward.
Exemptions deserve a careful look before filing. California does not use the federal exemption list. Filers choose one of two state systems for the entire case, and you must have lived in California long enough to use these exemptions. One system carries a homestead exemption tied to local home prices, which often favors homeowners in a market like Burbank, while the other offers a smaller residence amount plus a flexible wildcard that can suit renters. In Chapter 13, the value of your non-exempt property sets a floor on what unsecured creditors must receive through the plan, so choosing the right system directly shapes your monthly payment.
How Chapter 13 Plans Are Built and Confirmed
The plan payment is calculated from what you must pay: arrears on secured debts you intend to keep, priority claims, the trustee’s fee, your attorney’s fees through the plan, and whatever unsecured creditors are entitled to receive. Your budget has to show that you can make the payment month after month, which is why the court looks closely at your income and expenses. A plan that looks good on paper but leaves no room for rising costs is the most common reason cases fail midstream.
Creditors and the trustee may object to a plan. Typical objections involve whether your expenses are reasonable, whether the plan commits all projected disposable income, or whether the plan pays enough to unsecured creditors. A mortgage lender may dispute the arrearage figure. These disputes are usually resolved before or at the confirmation hearing through amendments to the plan. Having an attorney who knows the local trustees and how the court handles these issues saves time and avoids a dismissed case.
If circumstances change mid-plan, such as a job loss, a reduction in hours, or a medical emergency, the plan can often be modified, and in some cases a hardship discharge or conversion to Chapter 7 may be possible. Staying in contact with your attorney early, before payments are missed, gives you the most options. At the end of a completed plan, the court enters a discharge of the remaining dischargeable debts, and a Chapter 13 bankruptcy is typically removed from credit reports after 7 years, sooner than the 10 years a Chapter 7 can remain.
Burbank Chapter 13 Bankruptcy FAQs
How long does a Chapter 13 plan last?
Plans run three to five years. The length depends largely on whether your household income is above or below the California median and on how much must be paid to priority and secured creditors.
Can Chapter 13 stop a foreclosure on my Burbank home?
Yes. The automatic stay halts a scheduled foreclosure sale the moment the petition is filed. The plan then lets you cure missed mortgage payments over time while you stay current going forward. The sooner you call, the more room there is to prepare, but we act quickly when a sale is only days away.
Will I keep my house and car in Chapter 13?
Generally yes, provided you can make the plan payment and stay current on ongoing payments. Chapter 13 exists in large part so that people can keep property they would otherwise risk losing to foreclosure or repossession.
What debts get paid in full under a Chapter 13 plan?
Priority debts, such as certain recent tax obligations and domestic support arrears, must be paid in full through the plan. Mortgage and car loan arrears you want to cure are also paid through the plan. General unsecured debts like credit cards and medical bills often receive only a portion.
How do I choose between Chapter 7 and Chapter 13?
It depends on income, property, and the types of debt you have. Chapter 7 can eliminate qualifying unsecured debt in roughly four months but requires passing the means test and protecting your property through exemptions. Chapter 13 suits people with steady income who want to keep property or pay priority debts over time. Our board-certified attorneys review both options and tell you honestly which fits.
What happens to my wage garnishment if I file?
The automatic stay stops most garnishments when the case is filed. Your employer receives notice to stop withholding, and your plan payment replaces the garnishment, often in a more manageable amount.
Will my employer find out I filed for Chapter 13?
Not automatically. They may learn if they are a creditor, if a garnishment must be stopped, or if plan payments are deducted from your paycheck. California and federal law prohibit an employer from firing you solely because you filed.
Can I file Chapter 13 if I recently had a Chapter 7 discharge?
Yes, after a waiting period. You must wait 4 years after a Chapter 7 filing to file Chapter 13 with a discharge, and 2 years between Chapter 13 filings. Where a discharge is not the goal, such as when you only want to save a home from foreclosure, other timing rules may apply, so it is worth discussing your history with an attorney.
What if a collection firm sues me while I am in Chapter 13?
The automatic stay blocks the suit, and creditors covered by the plan must file claims in the bankruptcy case rather than pursue you in state court. If a lawsuit was filed before your case, a notice of the filing goes to the court and creditor so the case stops moving.
Can a debt that is too old to sue on still affect my Chapter 13?
A written-contract debt generally cannot be sued on after four years in California, and a payment does not revive one that has already expired. But the limitations period is a defense you must raise in a written answer if sued, and a creditor can still seek a judgment if you do not. Time-barred debts can be handled in the plan or challenged, so bring all notices to your consultation.
What if I miss a plan payment?
Contact your attorney right away. A single missed payment is not necessarily fatal, but ignoring it can lead the trustee to seek dismissal. Options include catching up, modifying the plan, or, if circumstances have changed permanently, considering a different chapter.
Is a Chapter 13 filing still worth it if my second mortgage has no equity behind it?
Often yes. If the home is worth less than the first mortgage balance, a wholly unsecured second mortgage can in some cases be removed from the secured category, reducing what you must pay on the home and freeing up cash flow in the plan.
Serving Burbank Chapter 13 Clients and Communities Across Southern California
Starting with Burbank and Los Angeles County, Wadhwani & Shanfeld represents Chapter 13 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, as well as Hollywood, Santa Monica, and the Westside. We also serve clients in Los Angeles, Santa Clarita, Long Beach, Lakewood, Torrance, Compton, Inglewood, Gardena, Norwalk, Bellflower, Paramount, Cerritos, Signal Hill, and Huntington Park, and in the Antelope Valley communities of Lancaster, Palmdale, and Acton.
Our reach extends into the Inland Empire and eastern San Gabriel Valley, including 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 help families in 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. Wherever you live, you can handle your Chapter 13 case remotely by phone, email, video, or online chat.
Talk to a Burbank Chapter 13 Bankruptcy Attorney Today
If a foreclosure sale, garnishment, or repossession is on the calendar, or if you simply need a realistic path to pay what you owe without losing your home, a conversation with a Burbank Chapter 13 bankruptcy attorney at Wadhwani & Shanfeld can show you where you stand. Call for a free consultation and speak directly with an attorney about whether a repayment plan fits your income and property, what it would cost each month, and what the alternatives look like. We will give you a straight answer about which path offers the best fresh start.
