Fullerton Chapter 13 Bankruptcy Lawyer
Wadhwani & Shanfeld helps Fullerton homeowners, drivers, and wage earners who are behind on debts they want to keep paying, and it serves clients throughout Orange County and the rest of Southern California. The firm handles Chapter 13 and Chapter 7 bankruptcy, foreclosure defense, wage garnishment, creditor lawsuits, IRS tax debt, and debt settlement.
A Fullerton Chapter 13 bankruptcy lawyer earns their keep on the cases where Chapter 7 does not fit: a mortgage that is three or four payments behind, income that sits above the means test, equity in a Fullerton home that exemptions will not fully cover, or a tax bill that will not go away on its own. Chapter 13 lets you keep the property and pay what is owed over three to five years under a plan the court enforces against your creditors.
The plan does real work. Missed mortgage payments get folded into it. Priority debts get paid in an orderly way. What remains of your unsecured debt gets paid according to what you can afford, not what the collectors demand.
Why Choose Wadhwani & Shanfeld for Chapter 13 in Fullerton
Wadhwani & Shanfeld is a consumer bankruptcy and debt relief law firm that has helped more than 30,000 individuals and families, including clients across Orange County, Los Angeles County, Riverside County, and San Bernardino County. The firm is led by two Board-Certified Specialists in Consumer Bankruptcy through the American Board of Certification, with more than 90 years of combined legal experience. Clients get direct access to an attorney from the first call, free consultations, and the option of handling the whole case by phone, email, video, or online chat, including 100% virtual consultations.
Raj Wadhwani, 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, founding shareholder and partner, earned his law degree at the University of Southern California and has handled more than 10,000 bankruptcy cases over three decades.
That matters in Chapter 13 because the filing is only the beginning. A plan has to be feasible, the numbers have to survive the trustee’s review, and the case has to hold together for years. Both partners’ experience is aimed at building plans that actually get confirmed and completed. The firm files in every division of the U.S. Bankruptcy Court for the Central District of California, and it acts fast when a garnishment, foreclosure sale, or repossession is days away.
Situations That Lead Fullerton Residents to File Chapter 13
- Mortgage Arrears and Foreclosure Sales: Chapter 13 lets you cure missed payments over the life of the plan while staying current going forward. Filing triggers the automatic stay, which halts a scheduled trustee’s sale.
- Income Above the Chapter 7 Means Test: If your household income exceeds the California median for your household size, Chapter 7 may be closed to you, and Chapter 13 becomes the practical route to relief.
- Home Equity Beyond the Homestead Exemption: California’s homestead exemption protects a substantial amount of equity, but longtime Orange County owners can exceed it. Chapter 13 allows you to keep the house while paying unsecured creditors at least what a liquidation would have produced.
- Car Loans and Repossession Threats: A plan can bring a delinquent auto loan current and stop a repossession already underway, which matters when you need the vehicle to reach work.
- IRS and Priority Tax Debt: Recent income taxes that Chapter 7 cannot discharge can be paid in full through the plan without penalties and collection actions pressing against you.
- Support Arrears and Other Non-Dischargeable Debts: Past-due child support or alimony must still be paid, but Chapter 13 gives you a structured way to catch up while protecting your property.
- Wholly Unsecured Second Mortgages: When your home is worth less than the first mortgage balance, the second lien may be stripped off in Chapter 13 and treated as unsecured debt.
- Wage Garnishment and Judgment Creditors: Filing stops most garnishments and bank levies at once and brings judgment collectors into the plan.
What to Do Right Now if You Are Considering Chapter 13
Start by gathering the paperwork that drives the plan: your last six months of pay stubs, recent tax returns, mortgage and car loan statements, a list of every creditor, and any lawsuit papers, garnishment notices, or notices of default you have received. Do not guess at numbers. The plan is only as good as the figures behind it.
If a foreclosure is in motion, the dates matter. In California, a sale cannot be set until roughly three months and 20 days after the notice of default is recorded, and the notice of sale has to be mailed and posted at least 20 days before the sale. A monetary default can be reinstated until five business days before the sale. Once you know where you are on that timeline, you know how much room you have. If the sale is close, call right away; the firm can often prepare and file a case quickly.
If you have been served with a collection lawsuit, do not ignore the response deadline. A debt that is past the four-year limit for written contracts is a defense, but it must be raised in a written answer or the court can still enter judgment. If a vehicle has been repossessed, the lender generally must give at least 15 days’ written notice before disposing of it, and you can ask in writing for a 10-day extension of the redemption period.
Be careful about two common mistakes. First, do not pay one favored creditor a large lump sum right before filing without talking to a lawyer; it can create problems in the case. Second, do not let a bankruptcy petition preparer pick your exemptions. A preparer cannot give legal advice or stand beside you if the trustee objects.
Your case will be filed in the U.S. Bankruptcy Court for the Central District of California. Orange County cases go to the Santa Ana Division, which serves all of Orange County, and your meeting of creditors and any hearings follow from there. The court assigns a division by the zip code of your street address, so a Fullerton filer is in Santa Ana’s territory. A local lawsuit against you would more likely be heard at the Orange County Superior Court’s North Justice Center, which sits in Fullerton.
How a Chapter 13 Plan Actually Gets Built and Confirmed
The core of a Chapter 13 case is the plan. Your attorney calculates your disposable income, lists what you owe by category, and proposes one monthly payment to a trustee, who distributes it to creditors. Secured arrears and priority debts like recent taxes come first. Unsecured creditors share in what is left, and what remains after the plan is complete is typically discharged.
Plan length is three to five years. Where your income is above the California median, the longer period is generally required; below it, the shorter period can apply. The court has to confirm the plan, and the trustee tests it for feasibility and fairness. A plan that promises more than your budget can carry gets rejected, which is why honest numbers at the start matter more than optimistic ones.
Your attorney’s work also includes choosing between California’s two exemption systems. California has opted out of the federal exemptions, so you choose either the homestead-based system or the alternative wildcard-based system, and you must stick with that choice for the whole case. You also must have lived in California for at least 730 days to use California’s exemptions. The homestead amount is tied to county median home prices within a statutory floor and ceiling, so a Fullerton owner with significant equity should have it analyzed carefully before filing rather than assumed.
Chapter 13 vs. Chapter 7 vs. Settlement for Fullerton Filers
Chapter 7 wipes out qualifying unsecured debt in roughly four months, but it is built for people who pass the means test and do not need to cure arrears on property they want to keep. Chapter 13 is built for steady earners who need time. Debt settlement, which the firm also handles, can make sense when the debt is manageable and bankruptcy would be more than the situation requires.
The attorney’s job at the first consultation is to run your income, expenses, property, and debts against all three and tell you which one actually works. Sometimes that answer is Chapter 13. Sometimes it is not, and a good lawyer will say so.
Fullerton Chapter 13 Questions Answered
How long does a Chapter 13 case last?
The plan runs three to five years. Your income relative to the California median for your household size usually determines which applies, and the trustee and court must confirm the length as part of the plan.
Will I keep my Fullerton home in Chapter 13?
That is the main reason people choose it. Missed mortgage payments are cured through the plan while you keep paying current installments. You must keep up with both for the case to succeed.
Does filing stop a foreclosure sale?
Yes. The automatic stay takes effect the moment the petition is filed and halts the sale. The stay is not permanent by itself; the plan is what lets you actually resolve the default.
Can Chapter 13 stop a wage garnishment?
Yes, filing generally stops most garnishments immediately. In some Chapter 13 cases, plan payments are deducted from your paycheck, but that is a payment method, not a garnishment by a creditor. An employer also cannot fire you for a single garnishment under California Labor Code section 2929.
Can I file Chapter 13 if I recently received a discharge?
Waiting periods apply. You must generally wait 2 years between Chapter 13 filings and 4 years to file Chapter 13 after a Chapter 7. Chapter 7 after a Chapter 13 generally requires 6 years, though that can be shortened if the plan paid enough to unsecured creditors.
What happens if I miss plan payments?
The trustee can move to dismiss the case, and dismissal ends the automatic stay. If you hit a rough patch, tell your attorney early; options like modifying the plan may be available if the problem is addressed before the trustee acts.
Will my employer find out?
Not automatically. They may learn if they are a creditor, if wages were being garnished, or if plan payments come out of your paycheck. Both federal and California law bar an employer from firing you solely for filing.
Does Chapter 13 wipe out my second mortgage?
Only in specific circumstances. If your home is worth less than the balance on the first mortgage, a wholly unsecured second mortgage can sometimes be stripped off and treated as unsecured debt. The home’s value, lien order, and balances must be analyzed before anyone can say whether it applies.
What if a creditor already won a judgment against me?
A California money judgment is enforceable for 10 years and can be renewed in some cases. Filing bankruptcy stops enforcement through the automatic stay, and judgment liens can sometimes be addressed in the case depending on what they attach to.
Do I have to come to an office to file?
No. The firm handles cases fully by phone, email, video, and online chat, including virtual consultations, so you can work with an attorney without leaving home.
Is hiring a lawyer worth it versus using a petition preparer?
In Chapter 13, almost always. A preparer cannot advise you, choose exemptions, or speak for you if the trustee or a creditor objects. An error in a filing can cost you property or your discharge.
Serving Fullerton and Orange County Chapter 13 Clients
Wadhwani & Shanfeld represents Chapter 13 clients from Fullerton and throughout Orange County, including Anaheim, Buena Park, La Habra, Placentia, Garden Grove, Santa Ana, Westminster, Huntington Beach, Costa Mesa, Newport Beach, Tustin, Mission Viejo, and Laguna Niguel. Clients just across the county line in Los Angeles County are also served, including Norwalk, Bellflower, Cerritos, Paramount, Gardena, Signal Hill, Long Beach, Lakewood, Torrance, Compton, Inglewood, and Huntington Park.
The firm’s reach extends through the Inland Empire and eastern San Gabriel Valley, with clients in Ontario, Rancho Cucamonga, Upland, Fontana, San Bernardino, Riverside, Pomona, Chino, Chino Hills, Montclair, Claremont, Glendora, and West Covina. It also works with residents of the San Fernando Valley and Westside, the Antelope Valley, Santa Clarita, and the Coachella Valley.
Talk With a Fullerton Chapter 13 Bankruptcy Attorney
If a foreclosure date, a garnishment, or a pile of missed payments is pushing you toward a decision, a Fullerton Chapter 13 bankruptcy attorney at Wadhwani & Shanfeld can tell you whether a repayment plan is the right fit and what it would look like. Call for a free consultation and speak directly with an attorney. We will review your income, property, and debts, lay out every option inside and outside bankruptcy, and give you a straight answer about which path protects what you want to keep.
