Tarzana Chapter 13 Bankruptcy Lawyer
Tarzana homeowners and wage earners weighing a repayment plan against a foreclosure date, a garnishment, or a car loan that has slipped behind are really deciding one question: can you keep what you have if you commit to a structured payment schedule? Wadhwani & Shanfeld is a consumer bankruptcy and debt relief law firm that represents clients in Tarzana, across the San Fernando Valley, and throughout Los Angeles, Orange, Riverside, and San Bernardino Counties.
A Tarzana Chapter 13 bankruptcy lawyer spends most of the work on arithmetic and timing. Chapter 13 does not erase debt the way Chapter 7 does. It gives you three to five years to pay what the law requires, in one monthly payment, while the automatic stay holds creditors off. In a neighborhood where home values often run well past the median, that structure is frequently what separates keeping a house from losing it.
The plan only works if the numbers hold for its entire length, so the most useful thing to understand early is how the plan is built, what it must pay, and where cases tend to stall.
Why Tarzana 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, and the attorneys carry more than 90 years of combined legal experience. For a Tarzana filer, that matters because a Chapter 13 plan is a multi-year commitment, and the drafting choices made in the first weeks determine whether it survives to discharge.
Raj Wadhwani, founding shareholder and partner, 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, earned his law degree at the University of Southern California and 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, which includes the division that hears Tarzana cases.
Clients speak directly with an attorney from the first call, and the firm moves quickly when a garnishment, foreclosure sale, or repossession is days away. Consultations are free, and the whole case can be handled by phone, email, video, and online chat, with 100% virtual consultations available. The firm also handles the alternatives, including debt settlement, loan modification, and Chapter 7, so a Chapter 13 recommendation comes from comparing real options rather than from selling the only service on the menu.
Situations That Push Tarzana Households Toward Chapter 13
- Mortgage Arrears and Foreclosure: Chapter 13 lets you cure missed mortgage payments over the life of the plan while staying current going forward. The filing halts a scheduled trustee’s sale, which matters because California reinstatement rights end five business days before the sale date.
- Home Equity Above the Exemption: Tarzana property can carry substantial equity. If your equity exceeds what California’s homestead exemption protects, Chapter 7 could put the excess at risk, while Chapter 13 lets you keep the home and pay creditors the value of that non-exempt equity over time.
- Income Above the Chapter 7 Means Test: Professionals, two-income households, and business owners often earn too much to pass the means test. Chapter 13 has no such cutoff, though your income sets the length and size of the plan.
- Back Taxes and Support Arrears: Priority debts such as certain income taxes and domestic support arrears survive Chapter 7. A Chapter 13 plan pays them in full over time, without added collection pressure while you do.
- Car Loans and Repossession: If you are behind on a vehicle you need for work, the plan can catch up the arrears and stop a repossession in progress.
- Wage Garnishment from a Judgment: An ordinary judgment garnishment can take a significant share of each paycheck. Filing stops it, and the plan replaces it with a payment you can plan around.
- Wholly Unsecured Second Mortgages: When your home is worth less than the first mortgage balance, a second mortgage may be stripped off and treated as unsecured debt within the plan.
- Recent Prior Bankruptcy: Waiting periods can block a new Chapter 7, but Chapter 13 is often available sooner, depending on which chapter you filed before.
What to Do When the Deadline Is Close
Start by collecting the paper that sets your deadlines: any notice of default or notice of sale, the repossession notice, the summons and complaint if you were sued, and recent pay stubs showing a garnishment. The dates on these documents decide how fast the case must be filed. In California foreclosure, the sale cannot be set earlier than three months and 20 days after the notice of default is recorded, the notice of sale must be mailed and posted at least 20 days before the sale, and you can reinstate by paying the arrears until five business days before it. A bankruptcy filing stops the sale at any point, but the closer it is, the less room there is to prepare.
For a vehicle, the lender must give at least 15 days’ written notice before selling a repossessed car, and you can ask in writing for a 10-day extension of the redemption period. If you were sued, the clock to respond is short, and missing it risks a default judgment, which can lead to garnishment and bank levies. Call before the response deadline passes, and bring the papers.
Next, gather the documents a Chapter 13 filing requires: recent tax returns, pay stubs, bank statements, a list of every creditor, mortgage and car loan statements, and a plain accounting of monthly household expenses. The plan’s payment is calculated from your income and allowed expenses, so inaccurate budgeting is the most common reason plans fail later. Be candid about irregular income, family contributions, and upcoming expenses.
Tarzana cases are filed in the San Fernando Valley Division of the U.S. Bankruptcy Court for the Central District of California, which sits in Woodland Hills. The division is determined by your street address zip code, and the court has a locator for confirming it. After filing, you will attend a meeting of creditors with the Chapter 13 trustee, make your first plan payment on schedule, and keep making post-filing mortgage payments. Skipping these steps early is how otherwise sound cases get dismissed.
How a Chapter 13 Plan Is Built and What It Must Pay
A Chapter 13 plan has to pay certain categories in full: priority claims such as recent taxes and support arrears, any mortgage or car arrears you want to cure, and the trustee’s fee. It must also pay unsecured creditors at least as much as they would have received if your non-exempt property had been liquidated in Chapter 7. This is why the exemption analysis drives the size of the plan. The more equity or property you hold above what the exemptions cover, the more the plan must pay.
California does not allow the federal exemptions. You choose one of two state systems for the entire case: the standard system, with a homestead exemption tied to the countywide median home price within a statutory floor and ceiling, or the alternative system, with far smaller dollar amounts for a residence, a vehicle, tools of the trade, and a wildcard. Homeowners with real equity usually fit the first; renters with few assets sometimes fit the second. You also generally must have lived in California for at least 730 days to use California’s exemptions. These dollar figures adjust periodically, so the current numbers should be confirmed for your filing date.
Plan length depends on income. Filers above the state median generally commit to a five-year plan, while those below can often finish in three, though a longer plan may be used when needed to cure arrears. Creditors are bound once the court confirms the plan, and the debts remaining at the end are discharged when you complete it. A plan that is too tight breaks under ordinary life events, such as a car repair or a reduction in hours, so a realistic cushion is part of competent drafting.
What Happens at Each Stage After You File
The automatic stay takes effect the moment the petition is filed. Lawsuits, wage garnishments, bank levies, repossessions, and foreclosure proceedings must stop. Your employer will be told to cease withholding on a garnishment, and a California employer may not fire you because wages were garnished for a single judgment. Within weeks you begin plan payments, usually by wage deduction or direct payment to the trustee.
The meeting of creditors comes next, a short hearing where the trustee asks about your petition, income, and property. Then the court holds a confirmation hearing on the plan. The trustee or a creditor may object, most often over feasibility, the treatment of arrears, or the value of your home. Many objections are resolved by amending the plan before the hearing. If the plan is confirmed, it governs the rest of the case.
The long middle of a Chapter 13 case is quiet if payments are made on time. Trouble comes from missed payments, a job loss, or a new debt taken on without court approval. When life changes, a plan can sometimes be modified, so tell your attorney early rather than falling behind. At the end, you complete the required course and receive a discharge of the remaining qualifying debts.
Chapter 13 Questions Tarzana Filers Ask
How much will I pay each month under a Chapter 13 plan?
The payment is built from your disposable income, the arrears you need to cure, priority debts, the trustee’s fee, and the minimum owed to unsecured creditors based on your non-exempt property. We calculate it before you file so you know whether it fits your budget.
Can Chapter 13 really stop a foreclosure sale in Tarzana?
Yes. The automatic stay halts the sale as soon as the petition is filed, and the plan lets you cure missed payments over time. Filing earlier gives more room, but we act quickly when a sale is days away.
Will I keep my house?
Most Chapter 13 filers do, provided they keep up the plan and the ongoing mortgage payments. The plan is specifically built to protect homes that would be at risk in Chapter 7 because of equity or arrears.
Is Chapter 13 better than Chapter 7?
Neither is better in general. Chapter 7 is faster and wipes out qualifying unsecured debt but requires passing the means test and risks non-exempt property. Chapter 13 suits steady earners who need to catch up on secured debt or protect equity. We compare both against your income, property, and goals.
What if I lose my job during the plan?
Tell us right away. Depending on the situation, a plan can sometimes be modified, the payments adjusted, or in limited cases a hardship discharge sought. Waiting until you have missed several payments narrows the options.
Do I need to attend court hearings in person?
Our firm handles cases remotely by phone, email, video, and online chat, and hearing formats are set by the court. We prepare you for each appearance and explain what to expect.
Can I stop a wage garnishment before I file the full case?
The stay takes effect on filing, so the garnishment ends once the case is filed. Your employer is notified to stop withholding. Separately, a garnishment on an ordinary judgment is capped by statute, and in some cases part of your earnings can be claimed exempt as necessary for your family’s support.
What happens to a judgment a creditor already obtained against me?
A California money judgment is enforceable for 10 years and can be renewed, subject to limits on renewals for certain medical and personal debt judgments. A Chapter 13 plan can address the debt and stop enforcement while the case is pending. Whether a judgment lien on your home can be removed depends on your equity and exemption.
Can I file Chapter 13 if I recently received a Chapter 7 discharge?
Often yes, subject to waiting periods. Chapter 13 can generally be filed four years after a Chapter 7 filing, and the waiting rules vary with the chapters involved. We check the dates before recommending a filing.
Is a debt that is too old to be sued on still a problem?
A written contract debt generally can be sued on for four years in California, and an oral one for two. An expired deadline is a defense you must raise in a written answer, and a payment cannot revive a time-barred debt. Raising it could make bankruptcy unnecessary for that particular debt, so we review old accounts carefully.
Can a collector be held accountable if it breaks the rules?
California’s Rosenthal Act covers original creditors as well as third-party collectors, and a consumer may recover actual damages, additional statutory damages for willful violations, and attorney fees. A suit must be brought within one year.
Chapter 13 Representation Across Tarzana and the San Fernando Valley
Wadhwani & Shanfeld represents Chapter 13 clients in Tarzana and throughout the surrounding San Fernando Valley, including Encino, Woodland Hills, Reseda, Northridge, Granada Hills, Van Nuys, Sherman Oaks, North Hollywood, North Hills, Mission Hills, San Fernando, and Sylmar. The firm also serves Hollywood, Santa Monica, and the Westside, as well as Santa Clarita.
Beyond Los Angeles County, the firm handles Chapter 13 cases for clients in Los Angeles, Long Beach, Lakewood, Torrance, Compton, Inglewood, Lancaster, Palmdale, and Acton, and across the Antelope Valley. In the Inland Empire and eastern San Gabriel Valley, we represent clients in Ontario, Rancho Cucamonga, Upland, Fontana, San Bernardino, Riverside, Pomona, Chino, Chino Hills, Montclair, Claremont, Glendora, West Covina, and the Coachella Valley.
In Orange County and the southeast Los Angeles area, we work with filers in Norwalk, Bellflower, Paramount, Gardena, Cerritos, Cypress, Signal Hill, Huntington Park, Anaheim, Santa Ana, Garden Grove, Buena Park, Fullerton, Huntington Beach, Westminster, Costa Mesa, Newport Beach, Tustin, La Habra, Placentia, Mission Viejo, and Laguna Niguel. Wherever you live, the case can be handled remotely from start to discharge.
Talk With a Tarzana Chapter 13 Bankruptcy Attorney Today
If a sale date, a garnishment, or a repossession is coming, the useful next step is a conversation with a Tarzana Chapter 13 bankruptcy attorney who can run your numbers and tell you honestly whether a repayment plan, Chapter 7, or a non-bankruptcy solution fits best. Call Wadhwani & Shanfeld for a free consultation and speak directly with an attorney, by phone or video, at a time that works for you.
