Riverside Chapter 13 Bankruptcy Lawyer
Chapter 13 is not a smaller or softer version of Chapter 7; it is a different tool, built around a three-to-five-year repayment plan that a federal judge confirms and every creditor must follow. Wadhwani & Shanfeld is a consumer bankruptcy and debt relief law firm that handles Chapter 13 filings for families across Riverside County and the rest of Southern California. For a Riverside Chapter 13 bankruptcy lawyer, the work is part math, part timing, and part knowing how the local bankruptcy court expects a plan to be built.
People in Riverside usually reach Chapter 13 for one of a few reasons: a mortgage that has fallen behind and a sale date is on the calendar, income that is too high to pass the Chapter 7 means test, a tax or support debt that Chapter 7 cannot touch, or home equity that exceeds what California’s exemptions protect. Chapter 13 answers each of those problems by giving you time to catch up while the automatic stay keeps creditors away.
Why Choose Wadhwani & Shanfeld for Chapter 13 in Riverside
The firm serves clients in Riverside County, San Bernardino County, Los Angeles County, and Orange County, including Riverside, the Coachella Valley, Ontario, Rancho Cucamonga, and the wider Inland Empire. Clients get direct access to an attorney from the first call, free consultations, and the choice of handling the whole case by phone, email, video, or online chat, with 100% virtual consultations available. When a foreclosure sale, garnishment, or repossession is only days away, the firm acts fast.
Chapter 13 punishes sloppy preparation. A plan that understates expenses, misjudges exemptions, or cannot be afforded gets denied or dismissed, and you lose the protection you filed for. That is why credentials matter here. Raj Wadhwani, a founding shareholder and partner, is a Board-Certified Specialist in Consumer Bankruptcy through the American Board of Certification. He 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, also a founding shareholder and partner and a Board-Certified Specialist in Consumer Bankruptcy, earned his law degree from the University of Southern California and has handled more than 10,000 bankruptcy cases over three decades. Together the firm’s lawyers bring more than 90 years of combined legal experience, and the firm files in every division of the U.S. Bankruptcy Court for the Central District of California, including the Riverside Division that hears cases from Riverside County.
Situations That Point Toward a Chapter 13 Plan
- Mortgage Arrears and Foreclosure Sales: Chapter 13 lets you spread missed mortgage payments over the life of the plan while you stay current going forward. Filing freezes a scheduled trustee’s sale, which matters because California lets you reinstate a monetary default only until five business days before the sale date.
- Income Above the Chapter 7 Means Test: If your household earns more than the California median for your family size, Chapter 7 may be closed to you. Chapter 13 has no such cutoff; your payment is based on what you can actually afford.
- Home Equity Beyond the Homestead Exemption: Riverside County homeowners with significant equity can find that a Chapter 7 trustee would sell the home. In Chapter 13 you keep the property and pay creditors at least what they would have received in a liquidation.
- Car Loans and Repossession Threats: A plan can bring a delinquent auto loan current over time, and in some cases adjust how the loan is paid, so you keep the vehicle you need for the commute.
- Tax Debt, Support Arrears, and Priority Claims: Chapter 7 cannot wipe these out. Chapter 13 lets you pay them through the plan, usually without added interest, while the stay blocks levies and collection.
- Wholly Unsecured Second Mortgages: When your home is worth less than the first mortgage, a second mortgage may be stripped off and treated as unsecured debt in the plan, which can reduce the second lien’s burden dramatically.
- Wage Garnishments and Creditor Judgments: A judgment creditor can take a share of your paycheck, capped by statute, but the automatic stay stops the garnishment the day the case is filed, and the judgment debt is folded into the plan.
- Recent Prior Bankruptcy Filings: Waiting periods between filings are shorter for Chapter 13 than for Chapter 7, so a plan may be available when a second Chapter 7 is not.
What to Do Now if You Are Behind and Considering Chapter 13
Start by finding the dates that are actually driving your situation. If you are in foreclosure, look at the notice of default and any notice of sale. California generally requires a notice of default to be recorded and then at least three months and 20 days to pass before a sale can happen, and the notice of sale must be mailed and posted on the property at least 20 days before the auction. If a sale date is on the paper, call an attorney the same day. If a car has been repossessed, the lender must give you at least 15 days’ written notice before selling it (20 days if mailed from or to an address outside California), and you can request an extension of the redemption period by 10 days in writing.
Next, gather what a Chapter 13 plan is built from: pay stubs for the last six months, your last two tax returns, a list of every creditor with balances, mortgage and car loan statements showing how far behind you are, and a realistic monthly budget. Chapter 13 hinges on the difference between what you earn and what you must spend, so an honest budget matters more than a flattering one. Do not hide assets, pay back relatives just before filing, or move money around; trustees look at all of it.
If you have been sued, do not ignore the summons. A missed response deadline can produce a default judgment, and the statute of limitations on a debt is a defense you must raise in a written answer; the court will not apply it for you. Collection suits over written contracts generally carry a four-year limit, and oral contracts two years, but a judgment that already exists is enforceable for 10 years and can be renewed. If a creditor’s lawyers are circling, call us before your response date passes so we can decide whether to answer, negotiate, or file.
Where you file depends on your home address. Cases from Riverside County are handled by the Riverside Division of the U.S. Bankruptcy Court for the Central District of California, located in the city of Riverside; San Bernardino County cases go to the same division. Our Riverside Chapter 13 bankruptcy attorneys confirm the correct division from your street address, not a P.O. box, before anything is filed. After filing, you will attend a meeting of creditors with the Chapter 13 trustee, start plan payments within 30 days, and wait for the court to confirm your plan, which makes it binding on creditors.
Exemptions, Equity, and the Plan Payment
The central math of Chapter 13 is the liquidation comparison: your plan must pay unsecured creditors at least as much as they would receive if you filed Chapter 7 and a trustee sold your non-exempt assets. That makes your exemptions the starting point for your plan payment. California has opted out of the federal exemption list, so you must choose one of two state systems for the whole case. One protects a substantial homestead tied to the median home price in the county, which can be significant for longtime Riverside homeowners. The other offers a smaller residence exemption plus a flexible wildcard that often works better for renters or people with little home equity. Both systems carry dollar amounts that are adjusted on a schedule, so we run the numbers at the time of filing rather than relying on old figures. To use California’s exemptions, you generally must have lived in the state for at least 730 days.
The plan payment itself is built from your disposable income, your mortgage and car arrears, any priority tax or support debt, and the trustee’s fee. A longer plan lowers the monthly payment, a shorter one finishes sooner; income below the state median generally supports a three-year plan with the option to extend to five, while higher income usually means five. We build the plan around a payment you can sustain, because a plan that fails midway leaves you exposed again.
Questions Riverside Clients Ask About Chapter 13
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, the size of your arrears, and what you must pay to priority creditors like the IRS or a support recipient.
Will I keep my house in Chapter 13?
That is the main reason many people choose it. As long as you make the plan payments and stay current on the regular mortgage payments that come due after filing, you keep the home and catch up on the missed ones over the plan.
Can Chapter 13 stop a foreclosure sale?
Yes. The automatic stay takes effect the moment the petition is filed. If a sale is only days away, we can often prepare and file quickly. Filing does not erase the arrears; it gives you the plan period to cure them.
What happens to my credit cards and medical bills?
They are unsecured debts paid through the plan at whatever percentage your income and the liquidation comparison require. Whatever remains unpaid when you complete the plan is generally discharged.
Can I file Chapter 13 if I recently received a Chapter 7 discharge?
Yes, but there is a waiting period. You generally must wait four years after a Chapter 7 filing to file Chapter 13 for the plan to be eligible for a discharge, though you can sometimes file sooner for the protection of the stay alone. We review the dates in your prior case before recommending a path.
Do I need a lawyer, or can a petition preparer do this?
A petition preparer can type forms, but cannot advise you, choose exemptions, or defend you if the trustee objects to your plan. A Chapter 13 case lasts years, and errors can cost you property or your discharge.
Will my employer find out I filed?
Not automatically. It can come up if your plan payments are deducted from your paycheck or if a garnishment must be stopped. California and federal law bar an employer from firing you solely because you filed, and California’s Labor Code separately bars firing over a garnishment from a single judgment.
What if a creditor’s debt is past the four-year limit?
A time-barred debt cannot be revived by a payment, and only a signed written acknowledgment can restart the clock. But the limitations defense must be raised in a written answer if you are sued. In bankruptcy, we can object to a stale claim so it is not paid through your plan.
What if I miss a plan payment?
The trustee can move to dismiss your case, which ends the stay and can expose you to foreclosure or garnishment again. If your income drops, contact us early; a plan can sometimes be modified, or in hardship cases, ended with a discharge.
Can I move or change jobs during the plan?
Yes, but tell us first. A job change can alter your income and plan payment, and the trustee and court must be notified. Selling or refinancing property during the plan also requires court approval.
Can a bank account levy take my money before I file?
A bank can freeze funds under a levy, though California automatically protects a set amount in your account without any claim. That protection does not apply to levies for child or spousal support, wages owed to another, or debts owed to the state. Filing bankruptcy stops most levies on the day of filing.
How soon can I rebuild credit during Chapter 13?
Many clients begin rebuilding during the plan with a secured card and on-time payments, though larger new borrowing generally requires trustee approval. A Chapter 13 can remain on your credit report for several years after filing, but its effect on your score fades well before then.
Serving Riverside County and Surrounding Chapter 13 Clients
Our work for Riverside County families reaches from the city of Riverside across the Inland Empire and out to the Coachella Valley. We also represent homeowners and wage earners in neighboring San Bernardino County, including Ontario, Rancho Cucamonga, Upland, Fontana, San Bernardino, Chino, Chino Hills, Montclair, Claremont, Pomona, Glendora, and West Covina in the eastern San Gabriel Valley.
The firm also serves Los Angeles County communities such as Sherman Oaks, Van Nuys, Encino, Woodland Hills, Northridge, Santa Clarita, Long Beach, Lakewood, Torrance, Compton, Inglewood, Lancaster, Palmdale, Acton, and the Antelope Valley, along with Orange County cities including Anaheim, Santa Ana, Garden Grove, Fullerton, Huntington Beach, Costa Mesa, Newport Beach, Tustin, Mission Viejo, and Laguna Niguel. Because we handle cases remotely, a Chapter 13 filing does not require a drive across the Inland Empire; you can work with an attorney from home.
Talk With a Riverside Chapter 13 Bankruptcy Attorney
If a missed mortgage payment, a garnishment notice, or a sale date has you counting days, call Wadhwani & Shanfeld for a free consultation and speak directly with an attorney. As a Riverside Chapter 13 bankruptcy attorney team, we will walk through your income, property, and debts, tell you honestly whether a Chapter 13 plan, Chapter 7, or a non-bankruptcy solution fits best, and move quickly if a deadline is close. Schedule a virtual consultation or call today.
