Claremont Chapter 13 Bankruptcy Lawyer
Wadhwani & Shanfeld is a consumer bankruptcy and debt relief law firm that helps Claremont residents who have steady paychecks but have fallen behind on a mortgage, a car loan, or tax debt, and who want to keep what they own. The firm handles Chapter 13, Chapter 7, debt settlement, foreclosure defense, wage garnishment, and creditor lawsuits for clients across Los Angeles County, Orange County, Riverside County, and San Bernardino County.
A Claremont Chapter 13 bankruptcy lawyer is often the right call when the goal is not to erase everything but to hold onto a house while catching up. Chapter 13 is a repayment plan, usually three to five years, funded from your income. It is different from Chapter 7, which wipes out qualifying unsecured debt in a few months but does not give you time to cure a mortgage default. If your problem is a missed-payment pile rather than a debt mountain, Chapter 13 is where the conversation usually starts.
Chapter 13 also differs from debt settlement. Settlement means negotiating with a creditor outside court and gets no automatic protection while talks drag on. Chapter 13 gives you a court-supervised plan and an immediate automatic stay the moment the petition is filed.
Why Choose Wadhwani & Shanfeld for Chapter 13 Representation in Claremont
Wadhwani & Shanfeld has helped more than 30,000 individuals and families, and the firm is led by two Board-Certified Specialists in Consumer Bankruptcy through the American Board of Certification. 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. Together the firm’s attorneys bring more than 90 years of combined legal experience.
Chapter 13 rewards that depth. A plan has to be feasible on your actual income, confirmed by the court, and then carried out for years. Filings that are thin on exemptions, budget detail, or arrears figures get challenged by the trustee. The firm files in every division of the U.S. Bankruptcy Court for the Central District of California, and clients get direct access to an attorney from the first call. When a garnishment, foreclosure sale, or repossession is days away, the firm acts fast. Consultations are free, and the whole case can be handled by phone, email, video, and online chat, with 100% virtual consultations available.
Debt Situations That Point Toward Chapter 13
- Mortgage arrears with a sale date looming: A notice of default in California is followed by a notice of sale, and the sale cannot be earlier than three months and 20 days after the default notice is recorded. Chapter 13 lets you pay the missed amounts over the life of the plan while keeping current going forward.
- Car loans in default: Missed payments can lead to repossession, and the lender must give written notice before disposing of the vehicle. A plan can stop the repossession process and spread out what you owe.
- Income above the Chapter 7 means test: If your household income is over the California median for your household size and your allowed expenses do not close the gap, Chapter 13 is often the available route.
- Priority tax debt: Recent income taxes and similar priority claims generally survive a Chapter 7 discharge but can be paid in full through a plan, without penalties and interest continuing to pile up in the same way.
- Support arrears: Past-due child or spousal support cannot be discharged, but a plan gives you a structured way to cure it while creditors are held at bay.
- Home equity beyond exemption limits: If your equity exceeds what California’s homestead protection covers, Chapter 7 could put the home at risk. Chapter 13 lets you keep the property, so long as the plan pays unsecured creditors at least what they would have received in a liquidation.
- A wholly unsecured second mortgage: In some cases a second mortgage with no value behind it can be stripped off through the plan.
- Wage garnishment and bank levies from judgments: Judgment creditors can take a portion of your paycheck or freeze an account. Filing stops most of that at the moment the case is opened.
What to Do in the First Days After You Realize Chapter 13 May Fit
Start with dates. Pull every notice you have received: the notice of default or notice of sale, any repossession letter, any court summons, any garnishment order. A foreclosure sale date, a creditor’s response deadline in a lawsuit, and a vehicle disposal notice each run on their own clock, and the right filing date depends on which one is closest. Under California foreclosure rules you can reinstate a monetary default until five business days before the sale, so there is a window, but it closes.
Next, gather your income and household paperwork: recent pay records, tax returns, a list of your debts with approximate balances, and your mortgage and vehicle statements. A Chapter 13 plan is built around what you earn and what your household costs, so the accuracy of these numbers matters. Speak with an attorney before you miss another payment or move money around. Paying one favored creditor or transferring property in the weeks before a filing can create problems you do not want.
If you have been sued, do not ignore the summons. A missed response can lead to a default judgment, and a judgment is what opens the door to garnishment and levies. Bankruptcy can stop the lawsuit, but whether to answer, negotiate, or file is a decision to make with counsel before the deadline.
Residents of Claremont, which sits in the eastern San Gabriel Valley in Los Angeles County, file in the U.S. Bankruptcy Court for the Central District of California. The court assigns the filing division by the debtor’s street address, using the court’s own zip code locator, and the Los Angeles Division covers most of Los Angeles County. Your attorney confirms the correct division before anything is filed. After filing, you will attend a meeting of creditors, and the trustee will review your plan and paperwork. The court then holds a confirmation hearing, and once the plan is confirmed, creditors are bound by it. Collection lawsuits on the Los Angeles County side are heard in the county Superior Court, which is a separate system from the bankruptcy court.
The most common mistakes are waiting until the week of the sale, filing without a realistic budget, and assuming a bankruptcy petition preparer can do the same job as a lawyer. A preparer cannot give legal advice, choose your exemptions, or stand up for you if the trustee objects.
Choosing Exemptions and Keeping Your Property in a Chapter 13
California has opted out of the federal exemption scheme, so you must pick one of two state systems for the entire case. One is built around a homestead exemption for homeowners. The other offers a wildcard that tends to suit renters and people with little home equity. To use California’s exemptions you generally must have lived in the state for at least 730 days before filing.
The homestead amount is the greater of a statutory floor or the prior-year countywide median price for a single-family home, up to a ceiling, and both figures adjust each year for inflation. Because the numbers are indexed, your attorney should confirm the current amounts when your case is evaluated. Why does this matter in Chapter 13? Because the plan must pay unsecured creditors at least the value of your non-exempt property. Home equity, a paid-off vehicle, or savings that fall outside your chosen exemptions raise the floor on what the plan must pay, so the exemption choice shapes your monthly payment, not just what you keep.
Chapter 13 and the Collection Problems It Interrupts
The automatic stay is the immediate benefit. Once the petition is filed, creditors must stop collection calls, lawsuits, wage garnishments, bank levies, repossessions, and foreclosure proceedings. For wage garnishment, an ordinary judgment already caps what an employer can take, generally the lesser of 20 percent of weekly disposable earnings or a figure tied to the minimum wage, and California bars an employer from firing you over garnishment on a single judgment. But a cap still takes a bite from every check, and the stay ends it.
Chapter 13 also reaches a problem that surprises people: a judgment from years ago. A California money judgment stays enforceable for 10 years from entry and can be renewed, so a judgment you thought was dormant can resurface with a garnishment. If a creditor has been violating collection rules, California’s Rosenthal Act separately lets a consumer recover damages and attorney fees, with a one-year limit to sue. Raise any such problems with your attorney early.
Claremont Chapter 13 Questions Answered
How long does a Chapter 13 plan last?
Plans run three to five years. The length depends on your income relative to the California median and on how much you need to pay to cure arrears and satisfy priority claims.
Can Chapter 13 stop a foreclosure sale in Claremont?
Yes. The automatic stay takes effect the moment the petition is filed, which halts the sale. The plan then lets you cure the missed payments over time while you stay current going forward.
Will I lose my house in Chapter 13?
Most filers use Chapter 13 precisely to keep it. If you stay current on the plan and on post-filing mortgage payments, you keep the home, including equity that might be at risk in a Chapter 7.
What happens if I miss a plan payment?
A missed payment can prompt the trustee to seek dismissal, but there are options if your circumstances change, such as modifying the plan. Tell your attorney immediately rather than letting payments lapse.
Do all my debts get paid in full?
No. Priority debts such as certain taxes and support arrears must be paid through the plan, and secured arrears are cured. Many general unsecured debts, like credit cards and medical bills, are paid only a portion based on what you can afford, and the remainder is discharged at the end.
Which debts cannot be discharged even after Chapter 13?
Child support and alimony generally survive, as do most government fines and debts for injuries caused by drunk driving. Most student loans also survive unless you meet the court’s strict hardship standard.
Can I file Chapter 13 if I filed bankruptcy before?
Yes, subject to waiting periods. You must wait 4 years to file Chapter 13 after a Chapter 7, and 2 years between Chapter 13 filings.
Will Chapter 13 stop a wage garnishment that has already started?
Filing the case triggers the automatic stay, which stops most garnishments from the date of filing. Your attorney notifies the creditor and your employer’s payroll so the deductions end.
Can I keep my car if I am behind on the loan and it was just repossessed?
It depends on timing. The lender must give written notice before selling a repossessed vehicle and you can ask for a 10-day extension of the redemption period. Contact an attorney right away, because a prompt filing can sometimes recover the vehicle.
Can a Chapter 13 plan deal with a second mortgage?
In some cases, a second mortgage that is wholly unsecured because the home is worth less than the first mortgage can be stripped off through the plan and treated as unsecured debt. Whether this works depends on your property’s value.
Will my employer find out I filed Chapter 13?
Not automatically. They may learn if they are a creditor, if a garnishment must stop, or if plan payments are deducted from your pay. California and federal law bar an employer from firing you solely because you filed.
Do I have to come into an office for my case?
No. The firm handles cases by phone, email, video, and online chat, and offers 100% virtual consultations.
Chapter 13 Representation for Claremont and the Surrounding Region
Wadhwani & Shanfeld represents Claremont homeowners and their neighbors across the eastern San Gabriel Valley, including Pomona, Glendora, West Covina, and Montclair, and out through the Inland Empire to Chino, Chino Hills, Upland, Rancho Cucamonga, Fontana, Ontario, and San Bernardino. The firm also serves Riverside and the Coachella Valley.
Across Los Angeles County, clients come from Los Angeles, Long Beach, Torrance, Compton, Inglewood, Lakewood, Norwalk, Bellflower, Paramount, Gardena, Cerritos, Signal Hill, and Huntington Park, as well as the San Fernando Valley communities of Sherman Oaks, Van Nuys, Encino, Woodland Hills, Reseda, Northridge, Granada Hills, North Hollywood, Sylmar, and San Fernando, plus Hollywood, Santa Monica, Santa Clarita, and the Antelope Valley cities of Lancaster and Palmdale. In Orange County the firm helps families in Anaheim, Santa Ana, Garden Grove, Fullerton, Huntington Beach, Costa Mesa, Newport Beach, Mission Viejo, and nearby cities.
Speak With a Claremont Chapter 13 Bankruptcy Attorney
If a mortgage default, a repossession threat, or a judgment is putting your property at risk, talk with a Claremont Chapter 13 bankruptcy attorney before the next deadline passes. Call Wadhwani & Shanfeld for a free consultation and you will speak directly with an attorney about whether a repayment plan, Chapter 7, or a settlement makes the most sense for your situation. You can meet remotely by phone or video and get a straight answer about the best path forward.
