Huntington Park Chapter 13 Bankruptcy Lawyer
The goal of a Chapter 13 case is simple to state and harder to achieve: keep the house or the car, stop the creditors, and pay back only what your income can realistically support, over a schedule a federal judge has approved. Wadhwani & Shanfeld is a consumer bankruptcy and debt relief law firm that represents Huntington Park residents and families across Los Angeles County and the rest of Southern California who are trying to reach that outcome. Our attorneys handle Chapter 7, Chapter 13, debt settlement, foreclosure defense, wage garnishment, and creditor lawsuits.
A Huntington Park Chapter 13 bankruptcy lawyer is most useful when the problem is not just the debt but the clock attached to it: a notice of default on a mortgage, a car about to be repossessed, a judgment creditor taking a slice of every paycheck, or a back-tax bill that Chapter 7 cannot touch. Chapter 13 exists for people who have steady income and something worth protecting. It gives you three to five years to catch up on what you owe while the law holds your creditors in place.
The sections below walk through how these cases actually unfold, who they work for, what the court expects of you, and what tends to go wrong when people file without a plan.
Situations That Point Toward Chapter 13 Instead of Chapter 7
- Mortgage arrears and a pending foreclosure: California’s foreclosure timeline is fixed by statute. A sale cannot be set until roughly three months and 20 days after the notice of default is recorded, and the lender must mail and post the notice of sale at least 20 days before the auction. You can reinstate a monetary default until five business days before the sale, but a Chapter 13 filing lets you spread the missed payments across the plan instead of finding the lump sum.
- Car loans in default: After a repossession, the lender must give at least 15 days’ written notice before disposing of the vehicle, and the borrower can ask in writing for a 10-day extension of the redemption period. If you are behind but have not lost the car yet, Chapter 13 can keep it and restructure the arrears.
- Income above the Chapter 7 means test: Chapter 7 requires your household income to pass a comparison against the California median for your household size. Higher earners who cannot qualify can still use Chapter 13 because it is built around what you can pay, not a liquidation.
- Home equity beyond the exemption: California filers choose between two exemption systems for the entire case. The homestead exemption under the main state system is tied to county median home prices and adjusted annually for inflation. If your equity exceeds what the exemption covers, Chapter 7 puts the home at risk, while Chapter 13 lets you keep it by paying creditors at least what they would have received in a liquidation.
- Priority tax debt and support arrears: Certain recent income taxes, child support, and alimony survive Chapter 7. A Chapter 13 plan can pay these in full over time without penalties piling on while you do.
- Wage garnishment from a judgment: An ordinary garnishment is capped by statute at the lesser of 20 percent of weekly disposable earnings or a figure tied to the minimum wage. Even so, it can drain a household budget. Filing stops most garnishments the moment the case is filed.
- A wholly unsecured second mortgage: When the first mortgage balance exceeds the home’s value, the second lien may be stripped off in Chapter 13 and treated as ordinary unsecured debt.
- Judgments from creditor lawsuits: A California money judgment is enforceable for 10 years and can be renewed, so a judgment that has been quietly accruing can come back through a bank levy or garnishment. Chapter 13 gives you a structured way to deal with it.
Why Choose Wadhwani & Shanfeld for Chapter 13 Representation
Together with their team they carry more than 90 years of combined legal experience. For Huntington Park residents, the firm works across Los Angeles County, Orange County, Riverside County, and San Bernardino County, and you can handle your case fully by phone, email, video, or online chat. Consultations are free, can be done 100 percent virtually, and put you in direct contact with an attorney from the first call.
Chapter 13 is a multi-year commitment, and the quality of the plan on day one determines whether you finish it. Greg Shanfeld, a University of Southern California law graduate, has handled more than 10,000 bankruptcy cases over three decades. Raj Wadhwani, a Southwestern Law School graduate, 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 when a sale date or a garnishment is days away, and the firm acts fast in exactly those situations. The firm files in every division of the U.S. Bankruptcy Court for the Central District of California, so the court that hears your case is one it knows well.
The firm also handles the alternatives. If Chapter 13 is not the right answer, our Huntington Park bankruptcy attorneys will say so and point you toward Chapter 7, debt settlement, loan modification, or negotiation with the IRS instead.
How a Chapter 13 Case Moves From Filing to Discharge
The case begins with a petition, schedules of your income, expenses, assets, and debts, and a proposed repayment plan. The automatic stay takes effect the moment the petition is filed, which freezes lawsuits, garnishments, bank levies, repossessions, and foreclosure proceedings. That is why timing matters so much: filing before a sale date or before a levy hits your account can protect property that would be gone a week later.
After filing, you begin making plan payments, usually to a trustee who distributes the money to creditors. You attend a meeting of creditors, where the trustee asks about your finances under oath, and the court holds a confirmation hearing on the plan. Once confirmed, the plan binds your creditors. Plans run three to five years depending on your income relative to the California median and what you owe in priority debts. The trustee and the court look hard at whether your budget is honest and whether the payment is realistic, so a plan that looks good on paper but leaves you with no room for car repairs or medical bills tends to fail.
Choosing the exemption system correctly shapes the whole case. The main state system offers a homestead exemption set by county median price and inflation-adjusted. The alternative system offers smaller fixed amounts for a residence, a vehicle, and tools of the trade, plus a wildcard that can be applied to any property. You must pick one system for the entire case, and you must have lived in California for at least 730 days to use the state’s exemptions. Renters and homeowners often end up in different systems for good reason.
Success in Chapter 13 depends on completing the plan. Missed payments, new debt taken on without permission, or a change in income can put the case at risk. We stay involved after confirmation so problems get addressed before the trustee asks for dismissal.
What to Do Now If You Are Behind and Considering Chapter 13
Start by gathering what a bankruptcy attorney will need: recent pay stubs, your last tax returns, mortgage and car loan statements, any notice of default or notice of sale, and every summons, complaint, or judgment you have received. If a creditor has sued you, the response deadline runs from the date of service, and an ignored lawsuit can end in a default judgment. Bring the papers even if you are unsure they matter.
Do not wait for a sale date to be scheduled. Foreclosure, repossession, and levy deadlines can compress a family’s options into a matter of days, and the more time we have, the better the plan we can build. At the same time, do not pay one creditor down in a panic or move assets into a relative’s name; both can create problems in bankruptcy. Avoid new credit as well.
Huntington Park sits in Los Angeles County, and the federal bankruptcy court that hears these cases is the U.S. Bankruptcy Court for the Central District of California. Which division your case belongs to depends on the zip code of your residence, and the court’s locator tool settles that question. Most of Los Angeles County falls within the Los Angeles Division in downtown Los Angeles. If a creditor has sued you in state court, the case is typically heard by the Los Angeles County Superior Court, which operates courthouses in Compton, Downey, Inglewood, Norwalk, and elsewhere across the county. Having a consultation first lets us confirm the right venue and move quickly on whatever is most urgent.
Common Questions About Chapter 13 for Huntington Park Residents
How long does a Chapter 13 plan last?
Plans run three to five years. The length depends largely on whether your income is above or below the California median for your household size and on how much priority debt, such as certain taxes or support arrears, must be paid through the plan.
Can Chapter 13 stop a foreclosure sale?
Yes. The automatic stay takes effect the moment the petition is filed and halts the sale. You then catch up on missed payments through the plan while staying current on new ones. If you want to avoid bankruptcy, a monetary default can also be reinstated until five business days before the sale, but that requires paying the full arrears at once.
Will I lose my car in Chapter 13?
Not usually. If you are behind but the car has not been repossessed, Chapter 13 lets you keep it and spread the arrears over the plan. If it has already been repossessed, the timing of the lender’s notices and your redemption rights become important, and we review those details early.
What happens to my wages if I am being garnished?
Filing stops most garnishments through the automatic stay. If your employer begins plan payments through payroll, that is a separate arrangement. California law also prevents an employer from firing you because your wages were garnished for a single judgment, and from firing you solely because you filed.
Can I file Chapter 13 if I recently received a Chapter 7 discharge?
Yes, subject to waiting periods. You generally must wait 4 years after a Chapter 7 filing to file Chapter 13, 2 years between Chapter 13 filings, and 6 years to file Chapter 7 after a Chapter 13, though that last period can be shortened if your plan paid enough to unsecured creditors.
Is it possible to strip off a second mortgage in Chapter 13?
If the home is worth less than the first mortgage balance, so that the second lien has no value securing it, it can often be treated as unsecured debt and eliminated or reduced through the plan. It requires a court motion and an appraisal, so it is not automatic.
What if a creditor sued me and I never responded?
A default judgment may already have been entered, and a California money judgment is enforceable for 10 years and can be renewed. The expired statute of limitations, four years on a written contract, is a defense you must raise in a written answer or the court can still enter judgment. Bankruptcy halts enforcement of a judgment and can address it through the plan.
Does a bank levy leave me anything?
California automatically protects a set amount in a deposit account without filing a claim, and the bank applies it before turning money over. It does not apply to wage claims owed to others, support, or debts to the state. A bankruptcy filing stops the levy more broadly.
Do I have to come to an office to file?
No. We handle Chapter 13 cases fully by phone, email, video, and online chat, and consultations can be 100 percent virtual. In-person meetings are available if you prefer.
What happens if I cannot finish my plan?
Depending on the cause, the options include modifying the plan for a change in income, converting to Chapter 7 if you qualify, or in limited cases seeking a hardship discharge. Dismissal ends the automatic stay, so we try to address problems before they reach that point.
Is a bankruptcy petition preparer enough for Chapter 13?
No. A petition preparer can type information into forms but cannot give legal advice, choose your exemptions, or represent you if the trustee or a creditor objects. A Chapter 13 case runs for years and needs an attorney who can respond when problems arise.
Serving Huntington Park and Surrounding Southern California Communities
Our Huntington Park Chapter 13 work begins with clients in the city itself and extends throughout Los Angeles County: Compton, Inglewood, Gardena, Paramount, Bellflower, Norwalk, Cerritos, Signal Hill, Lakewood, Long Beach, and Torrance. We also represent clients in Los Angeles, Hollywood, Santa Monica, and the San Fernando Valley communities of Sherman Oaks, Van Nuys, Encino, Woodland Hills, Reseda, Northridge, Granada Hills, North Hollywood, North Hills, Mission Hills, San Fernando, and Sylmar.
To the east, we serve the Inland Empire and eastern San Gabriel Valley, including Pomona, Chino, Chino Hills, Montclair, Claremont, Glendora, West Covina, Fontana, San Bernardino, Ontario, Rancho Cucamonga, Upland, Riverside, and the Coachella Valley. In Orange County, we work with clients 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. Further north, we serve Santa Clarita, Lancaster, Palmdale, Acton, and the Antelope Valley.
Talk to a Huntington Park Chapter 13 Bankruptcy Attorney
If a notice of default, a repossession threat, or a garnishment has put a deadline on your finances, call Wadhwani & Shanfeld for a free consultation. A Huntington Park Chapter 13 bankruptcy attorney on our team will review your income, your property, and your debts, tell you honestly whether Chapter 13 fits, and explain what else could work if it does not. You can speak directly with an attorney from the first call and handle everything remotely or in person, whichever is easier for you.
