Lakewood Chapter 13 Bankruptcy Lawyer
Lakewood homeowners who have fallen behind on a mortgage, a car loan, or back taxes often reach the same question at the same moment: is there a way to stay in the house and catch up, instead of losing it? Wadhwani & Shanfeld is a consumer bankruptcy and debt relief law firm that represents Lakewood residents, and clients across Los Angeles County, Orange County, Riverside County, and San Bernardino County, in a Lakewood Chapter 13 bankruptcy lawyer capacity, building repayment plans around the income people actually earn.
Chapter 13 is different from Chapter 7 in one way that matters here: it does not wipe out debt and send you on your way. It gives you three to five years to repay what you can, folds your arrears into a court-approved plan, and binds your creditors to that plan once the judge confirms it. For a Lakewood family with a steady paycheck and a house worth keeping, that structure can be the difference between a foreclosure sale and a manageable monthly payment.
The question is rarely “can I file?” It is “which chapter fits my income, my equity, and my deadlines?” That answer depends on numbers specific to your household, and it is worth getting right before anything is filed.
Why Lakewood Clients Choose Wadhwani & Shanfeld for Chapter 13
The firm is led by two Board-Certified Specialists in Consumer Bankruptcy, certified through the American Board of Certification, with more than 90 years of combined legal experience across the team. Clients get direct access to an attorney from the first call, free consultations, and the option of handling the entire case by phone, email, video, or online chat, including 100% virtual consultations.
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 in Chapter 13, where a plan, schedules, and pay stubs all have to be accurate and on time. Greg Shanfeld, a University of Southern California law graduate, has handled more than 10,000 bankruptcy cases over three decades. Both are founding shareholders and partners of the firm.
Chapter 13 is a case you live with for years, not weeks. The firm files in every division of the U.S. Bankruptcy Court for the Central District of California, and when a garnishment, foreclosure sale, or repossession is days away, it acts quickly. The firm also handles the alternatives, including debt settlement, loan modification, IRS representation, and second mortgage settlements, so the recommendation reflects what works for your situation rather than the only service on offer.
Debt Situations Where a Chapter 13 Plan Fits
- Mortgage Arrears and Foreclosure Notices: A Chapter 13 plan lets you cure missed mortgage payments over time while resuming regular payments. In California, a notice of default starts the clock, and a sale date cannot be set earlier than three months and 20 days after that notice is recorded. Filing stops the sale as soon as the petition is on file.
- Car Loans and Repossession Threats: If you are behind on a vehicle loan and need the car to get to work, a plan can fold the arrears into your payments. Once a repossession has happened, the lender must send at least 15 days’ written notice before disposing of the vehicle, so acting early preserves more options.
- Income Above the Chapter 7 Means Test: Households whose income exceeds the California median for their size may not qualify for Chapter 7. Chapter 13 has no means test cutoff in the same way, because it is built on repaying what you can afford.
- Back Taxes and Priority Debts: Some debts, including certain tax obligations and support arrears, survive Chapter 7. Chapter 13 lets you pay them through the plan over several years.
- Home Equity Above the Exemption: California offers two exemption systems, and equity beyond what either protects is a risk in Chapter 7. Chapter 13 lets you keep the property while paying creditors at least what they would have received in a liquidation.
- Wage Garnishment and Creditor Judgments: A judgment creditor can garnish a portion of your paycheck, generally the lesser of 20 percent of disposable earnings or the amount by which weekly disposable earnings exceed a multiple of the minimum wage. Filing stops most garnishments through the automatic stay.
- Second Mortgages That Are Wholly Unsecured: In some cases, a second mortgage with no value behind it can be stripped off through the plan, reducing what you owe going forward.
- Prior Bankruptcy Filings: Waiting periods apply if you have filed before, and Chapter 13 is sometimes available sooner than Chapter 7 after an earlier case.
What to Do Right Now If You Are Behind and Considering Chapter 13
Start by gathering paperwork, because a Chapter 13 plan is built from documents: recent pay stubs, your last two years of tax returns, mortgage and auto loan statements, any foreclosure notices or notices of default, and every lawsuit or collection letter you have received. If a creditor has sued you, note your response deadline and do not let it pass; the expired deadline for a debt is a defense you have to raise in a written answer, or a court can still enter judgment against you.
Next, find out where you stand on the clock. If you have received a notice of sale on your home, the notice must be mailed at least 20 days before the sale and posted on the property in that same window. You can reinstate a monetary default up to five business days before the sale date, but filing a Chapter 13 petition stops the sale immediately and gives you years instead of days to catch up. If a vehicle has been repossessed, you can ask in writing for a 10-day extension of the redemption period.
Your bankruptcy case is filed in the U.S. Bankruptcy Court for the Central District of California, and the division depends on your home zip code, using the street address and not a P.O. box. Lakewood residents are in Los Angeles County, and the court’s Court Locator confirms the right division for your zip code. Your meeting of creditors and any confirmation hearing take place within that division’s process, and if you prefer, most of the preparation with us can happen remotely.
Common mistakes to avoid: paying one favored creditor a large lump sum just before filing, letting a mortgage fall further behind while “waiting to see,” moving money between accounts without advice, and relying on a petition preparer who can type forms but cannot choose your exemptions or defend you if a trustee objects. Also avoid filing without checking residency: to use California’s exemptions you generally need to have lived in the state for at least 730 days.
How California Exemptions Shape a Chapter 13 Plan
California has opted out of the federal exemption scheme. Filers pick one of two state systems for the whole case, and the choice drives how much property you can protect. One system includes a homestead exemption set by a formula tied to the countywide median home price, with a statutory floor and a ceiling that both adjust annually for inflation. The other has smaller, fixed dollar amounts for a residence, a vehicle, tools of the trade, and a flexible wildcard that can absorb unused residence protection, and it is often better for renters or people with little equity. Those fixed amounts are adjusted every three years.
Why this matters in Chapter 13: the plan has to pay unsecured creditors at least what they would receive if your non-exempt property were liquidated in Chapter 7. If your home equity is mostly protected by the homestead exemption, that minimum is low. If it is not, the minimum rises and so does the plan payment. Selecting the exemption system is therefore not a formality; it sets the floor of what you pay.
Wage Garnishments, Bank Levies, and Judgments Before You File
Many Lakewood clients reach Chapter 13 after a creditor has already won a judgment. A California money judgment is enforceable for 10 years from entry, and it can be renewed, though more recent rules limit renewal to a single five-year extension for certain medical and personal debt judgments below stated principal amounts. During that period, the creditor can pursue wage garnishment and bank levies.
On wages, the garnishment cap is the lesser of 20 percent of weekly disposable earnings or 40 percent of the amount by which those earnings exceed 48 times the minimum hourly wage, with different multiples for biweekly, semimonthly, and monthly pay. If the local minimum wage is higher than the state minimum, the local rate is used. You can also ask a court to exempt the portion of earnings needed to support your family. Your employer cannot fire you because wages are garnished for a single judgment.
Bank levies work differently. California automatically protects a set dollar amount in a deposit account without you filing a claim, and the bank must apply that protection before turning money over. It does not apply to every kind of levy, such as child or spousal support. Whatever the specifics, the filing of a Chapter 13 case puts the automatic stay in place and halts most of these collection actions at once, which is often why people choose to file when a garnishment or levy has just landed.
Lakewood 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 how much you need to pay toward arrears and priority debts. Your monthly payment is built around what you can afford, and the court must confirm the plan before creditors are bound by it.
Can Chapter 13 stop a foreclosure sale on my Lakewood home?
Yes. Filing the petition triggers the automatic stay, which halts the foreclosure sale. You then cure the missed payments over the life of the plan while keeping current on new payments. Because a California sale date cannot be set earlier than three months and 20 days after the notice of default is recorded, there is often more time than people think, but filing before the sale date is essential.
Will I keep my house in Chapter 13?
That is the main reason many homeowners choose it. Unlike a liquidation, Chapter 13 lets you keep your property while you repay creditors through the plan. The condition is that you make your plan payments and stay current on ongoing mortgage payments.
What if my income is too high for Chapter 7?
Chapter 7 depends on the means test, which compares your income to the California median for your household size and then considers your actual expenses. If you fail the test, Chapter 13 is often the realistic path, since the plan is based on your disposable income rather than a cutoff.
Can I file Chapter 13 if I previously filed bankruptcy?
Often, yes, subject to waiting periods. You can file Chapter 13 four years after a Chapter 7, and two years between Chapter 13 filings. Waiting periods for a Chapter 7 after a Chapter 13 are generally six years, which can be shortened if your plan paid enough to unsecured creditors.
What debts can a Chapter 13 plan handle that Chapter 7 cannot?
Chapter 13 lets you repay priority debts such as certain taxes and support arrears over time, and it lets you catch up on secured debts like a mortgage or car loan. Chapter 7 cannot eliminate most of those obligations, though it can wipe out qualifying unsecured debt.
What happens if I miss a plan payment?
A missed payment is not automatically fatal, but it needs to be addressed quickly. The trustee can ask the court to dismiss the case, which would end the automatic stay and expose you again to creditors. If your income changes, the plan can sometimes be modified, so tell your attorney before you fall behind.
Do creditors still call or sue me after I file?
Once the case is filed, the automatic stay requires creditors to stop collection activity, including calls, lawsuits, garnishments, and levies. If a creditor continues after notice of your filing, we can take action. California’s Rosenthal Act also covers original creditors as well as collectors, and a consumer can recover actual damages and, for willful violations, an additional $100 to $1,000, with attorney fees for a prevailing consumer.
Will my employer find out I filed?
Not automatically. An employer may learn of it if it is a creditor, if wages are being garnished and must stop, or if plan payments are deducted from your paycheck. California and federal law bar an employer from firing you solely for filing bankruptcy.
How does Chapter 13 affect my credit compared with ignoring the debt?
A Chapter 13 case is typically removed from a credit report after 7 years, compared with up to 10 years for Chapter 7. Many filers already have damaged credit from missed payments and collections, and scores can begin to recover once you are making plan payments on time and keeping new balances low.
Is it worth hiring a lawyer instead of using a petition preparer?
For Chapter 13, almost always. A petition preparer can type forms but cannot give legal advice, choose your exemptions, or represent you if a trustee or creditor objects. Errors in the plan or schedules can cost you property or your discharge, and a plan that cannot be confirmed leaves you without protection.
Serving Lakewood and Surrounding Chapter 13 Clients
Our Chapter 13 work for Lakewood residents extends across the surrounding Southeast Los Angeles County communities, including Long Beach, Signal Hill, Bellflower, Paramount, Cerritos, Norwalk, and Cypress, as well as Gardena, Compton, Torrance, Inglewood, and Huntington Park. We also represent clients across Orange County, from Anaheim, Santa Ana, Garden Grove, Buena Park, and Fullerton to Huntington Beach, Westminster, Costa Mesa, Newport Beach, Tustin, La Habra, Placentia, Mission Viejo, and Laguna Niguel.
Beyond that, we serve the San Fernando Valley, including Sherman Oaks, Van Nuys, Encino, Woodland Hills, Reseda, Northridge, North Hollywood, and Sylmar, along with Hollywood, Santa Monica, and Santa Clarita. In the Inland Empire and eastern San Gabriel Valley, we help families in Ontario, Rancho Cucamonga, Upland, Riverside, Fontana, San Bernardino, Pomona, Chino, Chino Hills, Montclair, Claremont, Glendora, and West Covina, and in the Antelope Valley and Coachella Valley communities of Lancaster, Palmdale, and Acton.
Speak With a Lakewood Chapter 13 Bankruptcy Attorney Today
If a foreclosure notice, a garnishment, or a repossession deadline is closing in, a conversation with a Lakewood Chapter 13 bankruptcy attorney at Wadhwani & Shanfeld can tell you whether a repayment plan fits your income and what it would look like. The consultation is free, and you can speak directly with an attorney right away, by phone or video, without coming into an office first.
Call to review your situation, your deadlines, and your options inside and outside of bankruptcy. If Chapter 13 is not the right answer, we will tell you.
