Canoga Park Chapter 13 Bankruptcy Lawyer
A Chapter 13 case filed by a Canoga Park resident is assigned to the San Fernando Valley Division of the U.S. Bankruptcy Court for the Central District of California, which sits in nearby Woodland Hills, and the street address you live at, not a P.O. box, decides which division gets your petition. Canoga Park Chapter 13 bankruptcy lawyer services from Wadhwani & Shanfeld cover the full range of Chapter 13 work for homeowners, car owners, and wage earners across Los Angeles County, Orange County, Riverside County, and San Bernardino County, with direct attorney access from the first call.
Chapter 13 is a repayment plan, not a wipeout. You keep your property, fold your arrears into a three-to-five-year plan, and creditors are bound by that plan once the court confirms it. For a Canoga Park homeowner who has fallen behind on a mortgage, a worker whose paycheck is being garnished, or someone whose income is too high to pass the Chapter 7 means test, it is often the only filing that keeps the house, the car, and the paycheck intact. The decisions you make before filing, especially about exemptions and plan length, shape the whole case.
Chapter 13 Situations That Bring Canoga Park Residents Through Our Door
- Mortgage Arrears and Foreclosure: A notice of default starts a clock. A sale date cannot be set until at least three months and 20 days after the notice of default is recorded, and you can reinstate a missed-payment default up to five business days before the sale. Chapter 13 lets you spread those missed payments over the plan while staying current going forward.
- Car Loans and Repossession: A lender must give at least 15 days’ written notice before disposing of a repossessed vehicle. If you file before the vehicle is sold, Chapter 13 can let you keep the car and cure what you owe through the plan.
- Wage Garnishment from a Judgment: Ordinary judgment garnishments are capped by formula at the lesser of 20 percent of disposable weekly earnings or a minimum-wage-based figure. Filing triggers the automatic stay, which stops most garnishments the day the case is filed.
- Income Above the Chapter 7 Means Test: Valley professionals and two-income households often earn too much for Chapter 7 but still cannot keep pace with their debts. Chapter 13 bases your payment on what you can actually afford.
- Back Taxes and Support Arrears: Priority debts like certain tax obligations and domestic support arrears generally cannot be wiped out, but a Chapter 13 plan can pay them over time without collection pressure.
- Home Equity Beyond the Exemption: If your equity exceeds what California’s exemptions protect, Chapter 7 could put the house at risk. Chapter 13 lets you keep the property while paying creditors at least what they would have received in liquidation.
- Wholly Unsecured Second Mortgages: When your home is worth less than the first mortgage balance, a second mortgage may be removable through the plan, depending on the numbers.
- Creditor Lawsuits and Judgments: A summons from a collection firm does not have to end in a judgment. The deadline to respond is short, and a Chapter 13 filing freezes the case.
Why Choose Wadhwani & Shanfeld for Chapter 13 Representation
The firm is led by two Board-Certified Specialists in Consumer Bankruptcy, certified through the American Board of Certification, and together its lawyers carry more than 90 years of combined legal experience. The firm files in every division of the Central District of California, including the San Fernando Valley Division that handles Canoga Park cases, and serves clients across the Valley, the Westside, the Inland Empire, Orange County, and the Antelope Valley.
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. 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. That depth matters in Chapter 13, where the case lasts years and a poorly built plan can fail midway.
Clients speak directly with an attorney from the first call, and when a garnishment, foreclosure sale, or repossession is days away, the firm acts fast. Consultations are free, and the entire case can be handled by phone, email, video, and online chat, or you can be seen in person if you prefer. Because the firm also handles Chapter 7, debt settlement, loan modification, and IRS tax debt, the recommendation you get is based on what fits your situation, not on the only service on offer.
Deciding Whether Chapter 13 Is the Right Filing
The first decision is chapter choice, and it should not be made on instinct. Chapter 7 is faster, usually about four months, and eliminates qualifying unsecured debt, but it requires passing the means test and offers less help if you are behind on a mortgage or car loan. Chapter 13 takes three to five years but keeps assets safe that Chapter 7 might not, and it is the tool for catching up on secured debts. A real review of your income, expenses, equity, and debt types is what separates the two paths, and it is the heart of the free consultation.
The second decision is the exemption system. California has opted out of the federal exemptions, so you choose one of two state systems for the whole case. One carries a homestead exemption tied to the countywide median home price, with a statutory floor and a ceiling that adjust annually, and it suits most homeowners. The other is a set of fixed dollar amounts plus a wildcard that adjusts every three years, and it often works better for renters or people with little home equity. To use California’s exemptions at all, you generally must have lived in the state for 730 days. Picking wrong can cost you equity, and you cannot mix and match.
The third decision is plan length and payment size. Your plan runs three to five years depending on your income and debts, and every dollar you commit has to be one you can sustain. A plan that looks affordable on paper but ignores car repairs, rent changes, or a slow month at work is a plan that gets dismissed. Building in realistic margins at the start is far cheaper than trying to rescue a failing plan later.
What to Do Now if You Are Considering Chapter 13 in Canoga Park
Start by gathering the documents that tell the story: recent pay stubs, tax returns, mortgage and car loan statements, any notice of default or notice of sale, and every summons, judgment, or collection letter you have received. If a notice of sale has been recorded, note the date; the lender must mail it and post it at least 20 days beforehand, and your window to reinstate closes five business days before the sale. If you have been served with a lawsuit, the deadline to respond is short, and a missed response can lead to a default judgment.
Call before the deadline, not after. An attorney can often prepare an emergency filing that takes effect the moment the petition is filed with the court, triggering the automatic stay against garnishments, foreclosure, repossession, and lawsuits. Do not pay a creditor with money you will need for your plan, and do not transfer property to relatives to shield it, since the court and trustee look closely at transactions made shortly before filing.
Once your case is filed, you will attend a meeting of creditors, and the court will review and confirm your plan. Canoga Park residents file in the San Fernando Valley Division in Woodland Hills, and the firm handles the paperwork and appearances. From then on, the discipline is simple: make every plan payment on time, stay current on ongoing mortgage and car payments, and tell your attorney immediately if your income changes. Missed payments are the most common reason Chapter 13 cases fail, and they are avoidable with early communication.
Canoga Park Chapter 13 Bankruptcy Questions Answered
How long does a Chapter 13 plan last?
Three to five years. Your income relative to the California median, and the types of debt in your plan, determine the length. Creditors are bound by the plan once the court confirms it.
Will I lose my house if I file Chapter 13?
Chapter 13 is the filing designed to keep it. You stay current on ongoing payments and cure the missed ones through the plan. Most of our clients keep their homes.
Can Chapter 13 stop a foreclosure sale?
Yes. The automatic stay takes effect the moment the petition is filed and halts the foreclosure. If a sale date is days away, tell us immediately so we can move quickly.
Does filing Chapter 13 stop wage garnishment?
Filing generally stops most garnishments when the case is filed. If your payments are made through payroll deduction under the plan, your employer will be involved, but California and federal law bar firing you solely because you filed.
Which court handles a Canoga Park bankruptcy?
The San Fernando Valley Division of the U.S. Bankruptcy Court for the Central District of California, in Woodland Hills. Your street address zip code determines the division.
What is the difference between Chapter 7 and Chapter 13?
Chapter 7 wipes out qualifying unsecured debt in roughly four months if you pass the means test. Chapter 13 reorganizes debts into one monthly payment over three to five years and is better suited to catching up on a mortgage or car loan.
Can I file Chapter 13 if I filed bankruptcy before?
Usually yes, subject to waiting periods: four years after a Chapter 7 filing, and two years between Chapter 13 filings. We confirm timing before you file.
Can Chapter 13 help with a judgment already entered against me?
Often. A California money judgment is enforceable for 10 years and can be renewed, so it does not simply fade away. The automatic stay halts levies and garnishments, and the judgment debt can be addressed in the plan.
Can a collection lawsuit on an old debt still be filed against me?
A written-contract debt generally has a four-year limitations period, and an oral contract debt two years. But the expired deadline is a defense you must raise in a written answer, or the court can still enter judgment. A payment on a time-barred debt cannot revive it, though a signed written acknowledgment can restart the clock, so be careful what you sign.
What happens to my bank account if a creditor levies it?
California automatically protects a set amount in deposit accounts without you filing a claim, but that protection does not apply to levies for wages owed to another, support, or debts owed to the state. A bankruptcy filing stops most levies outright.
Do I need a lawyer, or can a petition preparer file for me?
A petition preparer can type forms but cannot give legal advice, pick exemptions, or represent you if a trustee or creditor objects. In Chapter 13, where a confirmed plan governs years of your finances, those gaps can cost you property or your case.
Serving Chapter 13 Clients From Canoga Park Across Los Angeles County and Beyond
We represent Canoga Park residents and neighbors throughout the western San Fernando Valley, including Woodland Hills, Reseda, Northridge, Granada Hills, Encino, and Sylmar. Our work reaches across the Valley into Van Nuys, North Hollywood, North Hills, Mission Hills, and San Fernando, and over the hill to Hollywood and Santa Monica on the Westside.
Beyond the Valley, we handle Chapter 13 cases throughout Los Angeles County, in Los Angeles, Santa Clarita, Long Beach, Lakewood, Torrance, Compton, Inglewood, Norwalk, Bellflower, Paramount, Gardena, Cerritos, and Huntington Park, as well as the Antelope Valley communities of Lancaster, Palmdale, and Acton. In the Inland Empire and eastern San Gabriel Valley we serve Ontario, Rancho Cucamonga, Upland, Fontana, San Bernardino, Pomona, Chino, Chino Hills, Montclair, Claremont, Glendora, West Covina, Riverside, and the Coachella Valley. In Orange County, our clients come from Anaheim, Santa Ana, Garden Grove, Buena Park, Fullerton, Huntington Beach, Westminster, Costa Mesa, Newport Beach, Tustin, La Habra, Placentia, Mission Viejo, and Laguna Niguel.
Talk to a Canoga Park Chapter 13 Bankruptcy Attorney Today
If a foreclosure is moving, a garnishment is eating your paycheck, or a lawsuit deadline is close, speak with a Canoga Park Chapter 13 bankruptcy attorney at Wadhwani & Shanfeld now. The consultation is free, you will talk directly with an attorney, and we will tell you honestly whether Chapter 13, Chapter 7, or a solution outside bankruptcy gives you the best chance to keep your home and start over. Call today or schedule a consultation, in person or entirely by phone and video.
