Tustin Chapter 13 Bankruptcy Lawyer
A Chapter 13 case filed by a Tustin homeowner lands in the Santa Ana Division of the U.S. Bankruptcy Court for the Central District of California, the division that handles Orange County filings. That is where a repayment plan gets reviewed, objections get heard, and a judge decides whether the plan is feasible. Wadhwani & Shanfeld is a consumer bankruptcy and debt relief law firm that represents people in Tustin and across Orange County, and a Tustin Chapter 13 bankruptcy lawyer from our team can tell you quickly whether a three-to-five-year plan fits your situation.
Chapter 13 is not the same as a quick wipeout. It is a court-supervised payment plan built around your income, and the decisions you make before filing, which exemption system, how long the plan runs, what to do about the mortgage arrears, shape everything that follows. Getting those choices right matters more than the filing itself.
Why Choose Wadhwani & Shanfeld for Chapter 13 Plans in Tustin
The firm is led by two Board-Certified Specialists in Consumer Bankruptcy, certified through the American Board of Certification, and the team carries more than 90 years of combined legal experience. When you call, you speak directly with an attorney from the first conversation, and consultations are free. We handle cases in person or fully by phone, email, video, and online chat, and 100% virtual consultations are available.
Raj Wadhwani, a 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 from 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 Central District, so the Santa Ana Division is familiar ground.
Why does that matter for Chapter 13 specifically? Because a plan lives or dies on its details. The budget has to hold up under the trustee’s review, the arrears figure has to match what the lender claims, and the plan has to run long enough to do its job without running longer than your finances can bear. We also act fast when a foreclosure sale, garnishment, or repossession is days away, and we will tell you plainly if Chapter 7 or a settlement works better than Chapter 13.
Situations Where a Chapter 13 Plan Makes Sense
- Mortgage Arrears and Foreclosure: If you have missed payments and a notice of default has been recorded, Chapter 13 lets you spread the missed amount over the plan while you keep current on new payments. Filing triggers the automatic stay, which halts a scheduled trustee’s sale.
- Income Above the Chapter 7 Means Test: Orange County households with solid earnings often exceed the California median for their household size. Chapter 13 is the route when Chapter 7 is not available on income.
- Home Equity Beyond the Exemption: If your equity exceeds what California’s homestead exemption protects, a Chapter 7 trustee could sell the property. Chapter 13 lets you keep it by paying creditors at least what they would have received in a liquidation.
- Car Loans Behind or Under Water: A plan can cure missed vehicle payments and, in some cases, restructure the loan so you keep the car you need for work.
- Priority Tax Debt and Support Arrears: Debts that Chapter 7 cannot discharge, including recent income taxes and past-due support, can be paid through the plan without collection pressure during the case.
- Wholly Unsecured Second Mortgages: When the first mortgage exceeds the home’s value, a second lien with no equity behind it can sometimes be stripped off and treated as unsecured debt.
- Wage Garnishment and Judgments: A garnishment on an ordinary judgment stops when the case is filed, and the judgment debt becomes part of the plan rather than coming out of your paycheck.
- Repeat Filers: Prior bankruptcies change which chapter you can use and when. Chapter 13 is sometimes available when a recent Chapter 7 closes the door to another.
What to Do Right Now If You Are Considering Chapter 13
Start with the deadline that is closest. If you have a notice of sale on your house, know that California requires that notice to be mailed by certified or registered mail and posted on the property at least 20 days before the sale, and that you can reinstate a monetary default until five business days before the sale date. Chapter 13 can be filed after that point, but every day of lead time gives us more room to prepare a plan that holds up. If a car has been repossessed, the lender must give at least 15 days’ written notice before disposing of it, and you can ask in writing for a 10-day extension of the redemption period.
If a creditor has sued you, do not ignore the summons. A missed response deadline can lead to a default judgment, and a judgment can lead to garnishment or a bank levy. Orange County civil cases are heard through the Orange County Superior Court, and we can tell you whether to answer, negotiate, or file bankruptcy before the deadline runs.
Gather your last two years of tax returns, recent pay stubs, a list of every creditor, your mortgage and car loan statements, and any notices you have received. Chapter 13 requires a full budget, so bring a realistic picture of what you spend each month. The more accurate the numbers, the better the plan.
Avoid the common mistakes. Do not pay one creditor in full right before filing, do not transfer property to a relative, and do not take cash advances on credit cards you plan to include. Do not hire a petition preparer to file for you; a preparer cannot choose exemptions or defend you if the trustee objects. Your case is assigned by the street address where you live, and for Tustin that means the Santa Ana Division. You will attend a meeting of creditors with the trustee, and we prepare you for it and attend with you.
How California Exemptions Shape a Chapter 13 Plan
California has opted out of the federal exemption scheme, so you choose between two state systems for the whole case: the traditional section 704 system, or the alternative section 703.140(b) system. You cannot mix them, and you generally must have lived in California for at least 730 days to use California’s exemptions.
For homeowners, the 704 system’s homestead exemption is the greater of a statutory floor or the prior-year countywide median single-family sale price, up to a cap, and both figures adjust annually for inflation. Orange County’s high home values often make that exemption valuable, but equity above it creates exposure. In Chapter 13 you keep the property, but the plan must pay unsecured creditors at least what they would receive if your nonexempt assets were liquidated. That “best interests” test is why the exemption choice directly affects your monthly payment.
The 703.140(b) system offers a smaller residence exemption but includes a wildcard that can be applied to any property, which sometimes works better for renters or people with little home equity. The dollar amounts in that system adjust every three years. We run the numbers under both before filing, because the wrong pick can raise your plan payment or put an asset at risk.
How the Plan Works From Filing to Discharge
Once you file, the automatic stay stops lawsuits, garnishments, levies, repossessions, and foreclosure proceedings. Within weeks you attend the meeting of creditors, and the court reviews your proposed plan at a confirmation hearing. Once confirmed, creditors are bound by its terms.
The plan runs three to five years, depending on your income and what you owe. You make one monthly payment to the trustee, who distributes it to creditors. Mortgage arrears, priority debts, and secured claims are paid first, and what remains goes toward unsecured balances like credit cards and medical bills, often at a fraction of face value. You must keep making ongoing mortgage and car payments on time during the case.
Life changes during five years, and plans can be modified for a job loss, a reduced income, or an unexpected expense. If a plan fails, you may have options such as converting to Chapter 7, but it is far better to build a realistic budget at the start. After the final payment and required course, the court grants a discharge of remaining eligible debts.
Tustin 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 on how much you must pay to cure arrears and satisfy priority debts.
Can Chapter 13 stop a foreclosure sale in Orange County?
Yes. The automatic stay takes effect the moment the petition is filed, which halts the sale. Chapter 13 then lets you catch up on missed payments over the plan rather than in one lump sum.
Will I keep my house and car?
That is the main purpose of Chapter 13. As long as you make plan payments and stay current on ongoing mortgage and loan payments, you keep your property, including equity that would be at risk in Chapter 7.
What if my income is too high for Chapter 7?
Chapter 7 requires passing the means test, which compares your income to the California median for your household size. If you do not qualify, Chapter 13 is typically the available route.
Do I have to pay back everything I owe?
Not necessarily. Secured arrears and priority debts must be paid in full through the plan, but many unsecured debts are paid only in part, based on your disposable income and the value of nonexempt property.
How much will my monthly payment be?
It is built from your budget: arrears, trustee fees, priority claims, and a payment toward unsecured creditors sized to what you can afford and what the law requires. We calculate it during your consultation.
Can Chapter 13 get rid of a second mortgage?
In some cases. If the home is worth less than the first mortgage balance, a wholly unsecured second lien may be stripped off and treated like other unsecured debt. This depends on current valuation and lien position.
What happens to a wage garnishment when I file?
The garnishment stops under the automatic stay. California caps garnishments on an ordinary judgment at the lesser of 20% of weekly disposable earnings or a percentage tied to the minimum wage, but filing ends it entirely rather than just limiting it. Your employer also cannot fire you for a garnishment on a single judgment.
How long should I wait if I filed bankruptcy before?
You must wait 4 years to file Chapter 13 after a Chapter 7 and 2 years between Chapter 13 filings. These waiting periods are measured from the earlier filing, and we check your history before recommending a path.
Is a judgment against me still enforceable if it is old?
A California money judgment is enforceable for 10 years from entry and can be renewed, though recent changes limit renewal to one time, for five years, on certain medical and personal debt judgments under set dollar amounts. If you are unsure whether a judgment is still live, bring the paperwork to your consultation.
Can I file Chapter 13 without coming to an office?
Yes. We handle cases fully by phone, email, video, and online chat, and you can do your entire consultation virtually.
Serving Tustin and Orange County Chapter 13 Clients
Our Tustin clients are often neighbors of homeowners in Santa Ana, Orange, and Irvine area communities where high property values make equity and exemption choices central to the case. We represent filers across Orange County, including Anaheim, Garden Grove, Fullerton, Buena Park, Westminster, Huntington Beach, Costa Mesa, Newport Beach, La Habra, Placentia, Mission Viejo, and Laguna Niguel.
Our reach continues across Southern California, with clients in Los Angeles County communities such as Long Beach, Lakewood, Torrance, Compton, Inglewood, Norwalk, Bellflower, Paramount, Gardena, Cerritos, Cypress, Signal Hill, and Huntington Park, and throughout the San Fernando Valley, the Antelope Valley, and the Westside. We also serve Riverside and San Bernardino Counties, including Ontario, Rancho Cucamonga, Upland, Fontana, Chino, Pomona, Riverside, and the Coachella Valley.
Talk With a Tustin Chapter 13 Bankruptcy Attorney Today
If a sale date is set, a lender is calling, or you simply want to know whether a repayment plan could let you keep your home, speak with a Tustin Chapter 13 bankruptcy attorney at Wadhwani & Shanfeld. Call for a free consultation and you will talk directly with an attorney who can review your income, your property, and your debts and tell you honestly which path makes sense.
Whether you meet in person or handle everything remotely, we will explain every option inside and outside bankruptcy, and move quickly if your deadline is close. Call today to get started.
