Irvine Chapter 13 Bankruptcy Lawyer
Irvine homeowners and workers with steady paychecks often reach the same fork in the road: you are behind on the mortgage or car note, but you earn too much, or own too much, for a simple wipeout of debt. Wadhwani & Shanfeld is a consumer bankruptcy and debt relief law firm that handles Chapter 13 for clients across Orange County and the rest of Southern California, and a repayment plan is often the tool built for exactly that fork. An Irvine Chapter 13 bankruptcy lawyer can tell you quickly whether a plan fits your numbers.
Chapter 13 is not a punishment version of bankruptcy. It lets you fold your arrears and other qualifying debts into a single court-approved plan, usually lasting three to five years, while you keep the property you want to keep. Creditors are bound by the plan once the court confirms it, and the automatic stay takes hold the moment your petition is filed, which is why Chapter 13 is so often the answer when a foreclosure sale or repossession is on the calendar.
Why Choose Wadhwani & Shanfeld for Chapter 13 Repayment Plans
Wadhwani & Shanfeld has helped more than 30,000 individuals and families resolve debt, and the firm is led by two Board-Certified Specialists in Consumer Bankruptcy through the American Board of Certification: founding shareholders Raj Wadhwani and Greg Shanfeld. Together the firm’s attorneys bring more than 90 years of combined legal experience. The firm serves clients throughout Orange County, Los Angeles County, Riverside County, and San Bernardino County, and you can reach an attorney directly from your very first call, with free consultations and 100% virtual consultation options by phone, email, video, or online chat.
That experience matters in Chapter 13 because the case is won or lost in the plan itself. 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. Greg Shanfeld, who earned his law degree from the University of Southern California, has handled more than 10,000 bankruptcy cases over three decades. The firm files in every division of the U.S. Bankruptcy Court for the Central District of California, so the paperwork, the trustee’s expectations, and the local confirmation process are familiar ground. When a garnishment, foreclosure sale, or repossession is days away, the firm acts fast, and it builds each plan around your income, your property, and your goals rather than a one-size-fits-all filing.
Situations Where a Chapter 13 Plan Fits Irvine Households
- Mortgage Arrears and Pending Foreclosure: A Chapter 13 plan lets you spread missed mortgage payments over the life of the plan while you stay current going forward. California’s nonjudicial foreclosure timeline gives you some room, since a sale date cannot be set earlier than three months and 20 days after the notice of default is recorded, but the right to reinstate a monetary default ends five business days before the sale. Filing before that point freezes the process.
- Home Equity Above the Exemption: Irvine property values can push equity past what California’s homestead protection covers. Because Chapter 13 does not liquidate your assets, you keep the home while paying creditors at least what they would have received in a Chapter 7 liquidation.
- Income Above the Means Test: If your household income exceeds the California median for your household size, Chapter 7 may be closed to you. Chapter 13 has no such cutoff; it asks only that you have regular income to fund a plan.
- Car Loans and Repossession Risk: When a lender has repossessed or is about to repossess, a plan can catch up the arrears and stop the sale. California requires written notice of intent to dispose of a repossessed vehicle, generally at least 15 days, so the clock is short but real.
- Priority Tax Debt and Support Arrears: Debts that Chapter 7 cannot eliminate, including certain income taxes and domestic support arrears, can be paid through the plan over time, often without added collection pressure.
- Wage Garnishment: A judgment creditor’s garnishment typically takes up to 20% of disposable earnings, subject to the statutory formula. The automatic stay halts it on filing, and plan payments replace it with a structure you can budget around.
- Unsecured Second Mortgages: In some cases a wholly unsecured second mortgage can be stripped off and treated as unsecured debt within the plan, reducing your monthly burden on the home.
- Repeat Filers: Prior bankruptcies trigger waiting periods, including four years to file Chapter 13 after a Chapter 7 discharge, and Chapter 13 sometimes works when Chapter 7 is off the table.
What to Do in the First Days Before You File
Start by gathering the paperwork that drives a Chapter 13 plan: recent pay stubs, your last couple of tax returns, mortgage and car loan statements showing the arrears, any notice of default or notice of sale, and every lawsuit, judgment, or collection letter you have received. If a foreclosure sale date has been set, write it down and tell us immediately; the dates under California law are firm, and the cure window closes five business days before the sale. If a creditor has sued you, do not let your response deadline pass; a default judgment can lead to wage garnishment and bank levies that a filing would otherwise have prevented.
Avoid the common mistakes. Do not pay one creditor in a lump sum right before filing, do not transfer property to relatives, and do not run up new charges. Do not rely on a paralegal or document preparer to choose your exemptions; a preparer cannot give legal advice or stand next to you if the trustee raises a problem, and errors can cost you property or your discharge.
Your case will be filed with the U.S. Bankruptcy Court for the Central District of California. Orange County cases are handled by the Santa Ana Division, and your street address, not a P.O. box, determines the division. After filing, you will attend a meeting of creditors, you will begin making plan payments to the Chapter 13 trustee, and the court will hold a confirmation hearing to approve the plan. Because we handle cases by phone, email, video, and online chat, none of this requires you to rearrange your work week around an office visit.
Protecting Your Irvine Home Under California’s Two Exemption Systems
California has opted out of the federal exemptions, so you choose one of two state systems for the whole case. The first, the section 704 system, includes a homestead exemption tied to the county median home price within a statutory floor and ceiling, which is adjusted for inflation each year. The second, the section 703.140(b) system, is built around a smaller residence amount plus a flexible wildcard, and it 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.
Chapter 13 changes how much these exemptions matter. In Chapter 7, equity above the exemption can be sold by the trustee. In Chapter 13, you keep the property, but the plan must pay your unsecured creditors at least the value of that nonexempt equity. Choosing the right system, and valuing your home accurately, directly shapes your monthly payment, which is why the decision gets careful attention before filing.
How Plan Length, Payments, and Discharge Work
Your plan runs three to five years. The length depends on your income relative to the California median and on what must be paid: arrears on a secured loan, priority debts, and a minimum return to unsecured creditors. Payments go to the trustee, who distributes them under the confirmed plan. At the end, remaining qualifying unsecured balances are discharged. If life intervenes, such as a job loss, there are options to modify the plan, and a hardship discharge or conversion to Chapter 7 may be available in some situations.
Irvine Chapter 13 Questions Answered
How much will I pay each month in Chapter 13?
One payment covers your plan: mortgage or car arrears, priority debts like certain taxes, trustee costs, and whatever your unsecured creditors are entitled to based on your income and nonexempt property. We run the numbers in your consultation so you see a realistic figure before you commit.
Will Chapter 13 stop a foreclosure sale?
Yes. The automatic stay takes effect the moment the petition is filed, halting the sale. You then catch up the missed payments through the plan while staying current on new ones.
Can I keep my home and car?
That is the main reason people choose Chapter 13. You keep your property as long as you complete the plan and stay current on ongoing payments for secured loans.
What if I earn too much for Chapter 7?
Chapter 7 requires passing the means test against the California median. If you do not pass, Chapter 13 has no income ceiling in that sense, because it is a repayment plan based on what you can afford.
What happens to a wage garnishment?
The garnishment stops once your case is filed and the creditor is notified. Plan payments, which may be deducted through your employer, take its place on terms set by the confirmed plan.
Can I file Chapter 13 if I recently received a Chapter 7 discharge?
Yes, after a waiting period. Generally four years must pass between a Chapter 7 filing and a new Chapter 13 filing. Prior Chapter 13 filings carry their own waiting periods, and we check your history before advising you.
Will my employer find out?
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 firing you solely because you filed for bankruptcy.
Does a creditor lawsuit change what I should do?
Often, yes. Responding on time matters, since an expired limitations period is a defense you must actually raise in a written answer. Most written-contract debt carries a four-year limit, and a payment cannot revive time-barred debt. We can evaluate whether to answer, negotiate, or file.
What happens to a judgment already entered against me?
A California money judgment is generally enforceable for 10 years and can be renewed, with limits on renewal for certain medical and personal debt judgments. Chapter 13 stops enforcement while the case is open, and the plan addresses what is owed.
Is a bank account levy covered by the stay?
Yes. Filing halts levies from the date of the petition. California also automatically shields a set amount in a deposit account from levy on an ordinary judgment, though that protection does not cover things like child or spousal support.
What if I miss plan payments or lose my job mid-plan?
Call us before the missed payment turns into a dismissal motion. Depending on the facts, we may be able to modify the plan, request a temporary adjustment, or convert the case to Chapter 7.
Do I have to come into an office?
No. We handle cases fully by phone, email, video, and online chat for clients throughout Southern California.
Serving Irvine and Orange County Chapter 13 Clients
We represent Irvine homeowners and workers, along with clients throughout Orange County, including Anaheim, Santa Ana, Garden Grove, Buena Park, Fullerton, Huntington Beach, Westminster, Costa Mesa, Newport Beach, Tustin, La Habra, Placentia, Mission Viejo, Laguna Niguel, Cypress, and Cerritos. Orange County filings are heard by the Santa Ana Division of the U.S. Bankruptcy Court for the Central District of California, and the firm files in every division of that court.
Our reach continues across Southern California: Los Angeles County communities such as Los Angeles, Long Beach, Lakewood, Torrance, Compton, Inglewood, Santa Monica, Hollywood, and the San Fernando Valley, plus Lancaster, Palmdale, and the Antelope Valley. We also serve Riverside and San Bernardino Counties and the Inland Empire, including Ontario, Rancho Cucamonga, Upland, Fontana, Chino, Pomona, Riverside, and the Coachella Valley.
Talk With an Irvine Chapter 13 Bankruptcy Attorney Today
If you are behind on the mortgage, staring at a sale date, or watching a garnishment take part of every paycheck, speak with an Irvine Chapter 13 bankruptcy attorney at Wadhwani & Shanfeld. Call for a free consultation and talk directly with an attorney, who will review your income, property, and debts and tell you honestly whether Chapter 13, Chapter 7, or a solution outside of court gives you the best path forward.
