Pomona Chapter 13 Bankruptcy Lawyer
Chapter 13 is the one bankruptcy chapter where you keep your property and pay for the privilege of keeping it, which is why the filing turns on arithmetic more than on how much debt you carry. A Chapter 13 plan lasts three to five years, and whether it works depends on your income, your home equity, and what you owe on the mortgage. Wadhwani & Shanfeld is a consumer bankruptcy and debt relief law firm that handles Chapter 13 for homeowners and wage earners across Los Angeles County, including Pomona, and throughout Orange, Riverside, and San Bernardino Counties. If you are looking for a Pomona Chapter 13 bankruptcy lawyer, the questions to settle first are whether you have the steady income a plan requires and what you are trying to protect.
For many Pomona households the trigger is a mortgage that fell behind during a layoff, a medical bill, or a reduction in hours, and a lender who has already recorded a notice of default. Others earn too much to pass the Chapter 7 means test, or owe debts that Chapter 7 cannot wipe out. Chapter 13 gives them a court-supervised way to catch up over time while the automatic stay holds creditors back.
How a Chapter 13 Plan Actually Works for Pomona Filers
In Chapter 13, you propose a plan that consolidates what you owe into one monthly payment to a trustee, who distributes it to creditors. The plan runs three to five years, and once the court confirms it, creditors are bound by its terms. Your payment is built from three pieces: the arrears you must cure on a mortgage or car loan, priority debts such as certain taxes and support arrears that must be paid in full, and whatever you can afford to pay toward unsecured debts like credit cards and medical bills.
The length of the plan is not a free choice. Filers whose income falls below the California median for their household size can generally propose a three-year plan, while those above the median are typically held to five years. That is one reason a careful look at income comes before anything else. A good Chapter 13 plan is sized to what you can sustain every month, because a plan that fails leaves you where you started, minus the time and fees.
The other number that shapes a plan is your non-exempt equity. Unsecured creditors must receive at least as much through the plan as they would have received if your property had been liquidated in Chapter 7. If you own a home with equity above what California’s exemptions protect, that shortfall gets built into the plan payment. A Pomona homeowner who bought years ago and has watched values climb may have more equity at risk than they realize, and measuring it accurately is part of choosing the chapter.
Why Choose Wadhwani & Shanfeld for Chapter 13 Representation
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. Raj Wadhwani and Greg Shanfeld are the firm’s founding shareholders and partners, and between the firm’s attorneys there are more than 90 years of combined legal experience. Mr. Shanfeld, a graduate of the University of Southern California law school, has handled more than 10,000 bankruptcy cases over three decades. Mr. 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 background matters in Chapter 13 because the chapter is more demanding than a Chapter 7 filing. It involves a plan that must satisfy the trustee, mortgage lenders that file claims for arrears, and an income calculation that can be contested. The firm files in every division of the U.S. Bankruptcy Court for the Central District of California, so the court’s procedures are familiar ground. 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, with 100% virtual consultations available. When a garnishment, foreclosure sale, or repossession is days away, the firm acts fast to get a case on file.
Situations That Lead Pomona Residents to Chapter 13
- Mortgage Arrears and Foreclosure: A plan lets you spread missed mortgage payments over up to five years while staying current on new ones. Filing stops a scheduled trustee’s sale through the automatic stay, and you keep the home as long as the plan is completed.
- Income Above the Chapter 7 Means Test: If your household income exceeds the California median for your family size and your allowed expenses do not close the gap, Chapter 7 may be unavailable, and Chapter 13 becomes the route to relief.
- Car Loans Behind or Repossession Looming: Chapter 13 can stop a repossession and let you catch up on payments through the plan, which is useful when you need the vehicle to get to work.
- Tax and Support Arrears: Priority debts such as certain income taxes and domestic support arrears generally survive Chapter 7. Chapter 13 lets you pay them in installments without penalties piling on while the case is open.
- Home Equity Above the Exemption: California filers choose between two exemption systems, and the homestead amount is tied to local home prices with a statutory floor. If your equity exceeds what is protected, Chapter 13 lets you keep the home rather than risk a Chapter 7 trustee selling it.
- Wholly Unsecured Second Mortgages: When the home is worth less than the first mortgage, a second lien may be stripped off in Chapter 13 and treated as unsecured debt, reducing what you pay toward the house.
- Wage Garnishment and Judgments: A garnishment on an ordinary judgment can take a substantial slice of each paycheck. Filing stops most garnishments when the case begins, and the judgment debt is handled inside the plan.
- Previous Bankruptcy Discharge: If you received a Chapter 7 discharge recently, you may be barred from a second one but still eligible for Chapter 13 after the required waiting period.
What to Do in the First Days After Deciding to Explore Chapter 13
Start by gathering the documents a plan is built from: recent pay stubs, your last two years of tax returns, mortgage statements, any notice of default or notice of sale you have received, and a list of every creditor. If you have been served with a lawsuit, note the response deadline on the summons, because a missed deadline lets a creditor take a default judgment. Do not pay one creditor in a rush to calm them while ignoring the rest, and do not move assets or transfer property to relatives, since the trustee will look at recent transfers.
If your home is in foreclosure, the dates drive everything. California law sets a sequence: a sale cannot be scheduled until roughly three months and 20 days after the notice of default is recorded, and the notice of sale must be mailed and posted at least 20 days before the sale. You may reinstate a monetary default until five business days before the sale, which is a separate option from bankruptcy. A Chapter 13 filing can be made at any point before the sale occurs, but the closer the date, the less room there is to prepare the schedules and plan properly, so call as soon as you see a notice.
Your bankruptcy case is assigned to a division of the U.S. Bankruptcy Court for the Central District of California based on the zip code of your street address, not a P.O. box, and the court’s locator confirms which division handles your case. Pomona residents with a lawsuit pending will often see it in the Los Angeles County Superior Court, which sits in Pomona at the Pomona Courthouse South. Once you file, you will attend a meeting of creditors, where the trustee questions you about your finances, and your first plan payment generally begins within weeks of the filing date, before the plan is even confirmed. Missing that payment is one of the most common ways a case gets into trouble.
Keeping Your Home, Car, and Paycheck Under a Plan
California has opted out of the federal exemptions, so you must pick one of two state systems for the entire case. One system carries a homestead exemption tied to the prior year’s countywide median single-family sale price, with a statutory floor and a cap that adjust for inflation, and it tends to suit homeowners with meaningful equity. The other uses smaller dollar amounts for a residence and a vehicle plus a wildcard you can apply to any property, and it often suits renters or those with little equity. To use California’s exemptions at all, you generally must have lived in the state for at least 730 days before filing. Choosing between the systems is among the most consequential decisions in a Chapter 13 case, because it sets the equity figure your plan must account for.
Chapter 13 also changes how wage garnishment works in practice. Outside bankruptcy, a creditor with a judgment can take up to the lesser of 20% of weekly disposable earnings or a figure based on how far those earnings exceed a multiple of the minimum wage, and you can ask the court to exempt more if you prove it is necessary to support your family. Once your case is filed, the automatic stay halts the garnishment, and your payment goes to the trustee under the plan instead. Your employer cannot fire you simply because you filed.
Pomona Chapter 13 Questions Answered
How much will I pay each month in Chapter 13?
Your payment depends on the arrears you must cure, any priority debts, the equity in your property that unsecured creditors are entitled to, and your disposable income after allowed expenses. It is calculated for your household, not set by a formula you can look up in advance, which is why a review of your numbers comes first.
How long does a Chapter 13 plan last?
Three to five years. Filers with income below the California median for their household size can usually propose three years, while those above it are typically required to commit to five. You can finish early if you pay off the plan sooner.
Will I keep my house if I file Chapter 13?
In most cases, yes, provided you complete the plan and stay current on mortgage payments that come due after you file. Chapter 13 is designed to let you keep property and cure arrears over time rather than surrender it.
Does filing stop a foreclosure sale?
Yes. The automatic stay takes effect the moment the petition is filed and halts the foreclosure. The case must be filed before the sale takes place, so a scheduled sale date is a reason to act quickly.
Which debts does Chapter 13 handle that Chapter 7 does not?
Chapter 13 lets you repay priority debts like certain taxes and support arrears through the plan, and cure mortgage and car loan arrears while keeping the collateral. Chapter 7 generally cannot do either.
What happens if I miss plan payments?
The trustee can ask the court to dismiss the case, which ends the automatic stay and lets creditors resume collection. If your income drops, a plan can sometimes be modified, so tell your attorney early rather than falling behind.
Can I use Chapter 13 to remove a second mortgage?
If the value of the home is less than what you owe on the first mortgage, a second mortgage may be wholly unsecured and can be stripped off through the plan, reclassified as unsecured debt that is paid only to the extent the plan provides. Whether that works depends on a valuation of the property.
Can a creditor sue me after I file Chapter 13?
Not while the automatic stay is in place. Lawsuits, judgments, bank levies, and garnishments are halted. If you were served before filing, bring the papers to your attorney so the case can be handled correctly.
If a creditor already has a judgment against me, does Chapter 13 help?
Yes. A California money judgment is enforceable for 10 years and can be renewed, so it does not simply fade away. Filing stops enforcement, and the judgment debt is treated within your plan, with rules for avoiding certain liens on exempt property that your attorney can evaluate.
Do I need to appear in person?
Your case can be handled remotely with the firm by phone, email, video, and online chat, and consultations can be fully virtual. The meeting of creditors and any court hearings follow the court’s own rules, and your attorney will tell you what to expect.
Will my employer be told about my Chapter 13?
Not automatically. They may find out if plan payments are deducted from your paycheck or if your wages were being garnished and must stop. Federal and California law protect you from being fired solely for filing.
Serving Pomona Chapter 13 Clients Across Southern California
Wadhwani & Shanfeld represents clients in Pomona and throughout Los Angeles County, and from there across the eastern San Gabriel Valley and the Inland Empire. That includes Claremont, Montclair, Chino, Chino Hills, Glendora, and West Covina, as well as Fontana, San Bernardino, Ontario, Rancho Cucamonga, and Upland in San Bernardino County. In Riverside County the firm serves Riverside and the Coachella Valley.
The firm also works with homeowners and wage earners across the rest of Los Angeles County, including Los Angeles, Long Beach, Torrance, Compton, Inglewood, Gardena, Norwalk, Bellflower, Paramount, Cerritos, Lakewood, and Huntington Park, along with the San Fernando Valley communities of Sherman Oaks, Van Nuys, Encino, Woodland Hills, and Northridge. In Orange County, clients come from Anaheim, Santa Ana, Garden Grove, Fullerton, Huntington Beach, Costa Mesa, Newport Beach, and Mission Viejo, and the firm serves the Antelope Valley communities of Lancaster and Palmdale as well.
Talk With a Pomona Chapter 13 Bankruptcy Attorney Today
If a mortgage is behind, a sale date is set, or a garnishment is taking part of every paycheck, a conversation with a Pomona Chapter 13 bankruptcy attorney can tell you quickly whether a plan fits your income and your home. Call Wadhwani & Shanfeld for a free consultation and speak directly with an attorney about your options, including those outside of bankruptcy. You can handle the entire process remotely, and the firm will tell you honestly whether Chapter 13, Chapter 7, or a different path makes the most sense.
