Woodland Hills Chapter 13 Bankruptcy Lawyer
The goal in a Chapter 13 case is concrete: keep your house or car, catch up on what you owe over time, and end up with one affordable payment instead of a pile of collection pressure. Woodland Hills Chapter 13 bankruptcy lawyer help from Wadhwani & Shanfeld means working with a consumer bankruptcy and debt relief firm that serves Woodland Hills and the surrounding San Fernando Valley, along with the rest of Los Angeles County, Orange County, Riverside County, and San Bernardino County.
Chapter 13 is a reorganization, not a liquidation. You propose a plan that runs three to five years, you make a single monthly payment, and once the court confirms the plan your creditors are bound by it. For a homeowner who has fallen behind on the mortgage, that structure matters because the missed payments can be spread across the plan while you stay current going forward. Filing also triggers the automatic stay, which halts foreclosure proceedings, wage garnishments, bank levies, and most collection lawsuits from the moment the petition is filed.
Why Choose Wadhwani & Shanfeld for a Chapter 13 Filing in Woodland Hills
Wadhwani & Shanfeld is a consumer bankruptcy and debt relief law firm that has helped more than 30,000 individuals and families across Southern California, including clients throughout Woodland Hills, the San Fernando Valley, and the Westside. 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. You get direct access to an attorney from your first call, and when a foreclosure sale, garnishment, or repossession is days away, the firm acts fast. Consultations are free, and everything can be handled by phone, email, video, and online chat, including 100% virtual consultations.
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, 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. Chapter 13 rewards that depth. A plan has to satisfy the trustee, the court, and your creditors while fitting a real household budget, and the firm files in every division of the U.S. Bankruptcy Court for the Central District of California.
Situations Where Chapter 13 Fits Woodland Hills Households
- Mortgage Arrears and Foreclosure: Missed payments lead to a notice of default, and under California law a sale date cannot be set earlier than three months and 20 days after that notice is recorded. Chapter 13 lets you cure the arrears over the plan term while resuming regular payments, and filing stops a scheduled sale.
- Home Equity Above the Exemption: California offers two exemption systems, and the homestead exemption under the state system is tied to local home prices, with a statutory floor and a ceiling. Woodland Hills homeowners with substantial equity may exceed what Chapter 7 can safely protect, and Chapter 13 lets you keep the property without a trustee selling it.
- Income Above the Means Test: Chapter 7 requires passing a test comparing your household income to the California median for your household size. If your income is too high, Chapter 13 is often the available path.
- Car Loans and Repossession: When a lender threatens to repossess, Chapter 13 can stop the repossession and let you catch up on missed payments through the plan.
- Tax Debt and Support Arrears: Priority tax debts and past-due support generally cannot be wiped out in Chapter 7, but a Chapter 13 plan can pay them over time without further collection action.
- Wholly Unsecured Second Mortgages: In some cases, a second mortgage with no equity behind it can be stripped off through the plan, which can reduce your total monthly housing burden.
- Wage Garnishment: A judgment creditor can take a share of your paycheck, capped by statute at the lesser of 20% of weekly disposable earnings or a formula tied to the minimum wage. The stay halts it as soon as you file.
- Prior Bankruptcy Timing: If you received a Chapter 7 discharge, you must wait 4 years before filing Chapter 13, and 2 years between Chapter 13 filings, which affects when a new case is possible.
What to Do Right Now If You Are Considering Chapter 13 in Woodland Hills
Start by sorting out what is urgent. If you have a foreclosure sale date, a repossession notice, or a garnishment hitting your paycheck, call an attorney before anything else, because those clocks drive the timing of the filing. On a mortgage default, California law lets you reinstate by paying the missed amounts up until five business days before the sale, and a postponed sale of at least 10 business days must be followed by written notice of the new date within 5 business days. On a vehicle, the lender must give at least 15 days’ written notice before disposing of a repossessed car, and you can ask in writing for a 10-day extension of the redemption period.
Next, gather your paperwork: recent pay stubs, tax returns, bank statements, your mortgage and car loan statements, a list of every creditor with approximate balances, and any lawsuit papers or court notices. If you have been sued, do not ignore the summons. An expired limitations period is a defense that has to be raised in a written answer, and a court can still enter judgment if you do nothing. For ordinary written contract debts the suit window is four years, and a payment on a time-barred debt does not revive it.
Your zip code, based on your street address rather than a P.O. box, determines which bankruptcy division handles your case. Woodland Hills sits within the San Fernando Valley Division of the U.S. Bankruptcy Court for the Central District of California, and that division’s courthouse is in Woodland Hills itself. Residents of nearby Calabasas, Encino, Tarzana, Reseda, Northridge, and Van Nuys are served by the same division. Communities like Lancaster, Palmdale, and Santa Clarita appear on the division list with footnotes, so the zip code should be confirmed before filing.
Finally, avoid the common mistakes: do not pay one friendly creditor ahead of others in the weeks before filing, do not transfer property to relatives, and do not rely on a document preparer for exemption choices. A petition preparer can type forms but cannot advise you. Because you must stay current on your plan payments for years, your attorney will also build the budget around your actual income so the plan is something you can finish.
How a Chapter 13 Plan Is Built and Confirmed
A Chapter 13 plan has to account for several categories of debt. Secured arrears, such as missed mortgage or car payments, are cured over the plan term. Priority debts, including certain taxes and support arrears, must be paid in full. Unsecured debts such as credit cards and medical bills receive whatever your disposable income and the value of your non-exempt property require. The length of the plan, three or five years, depends largely on your income and how much you must pay creditors.
Exemptions shape the plan directly. California has opted out of the federal exemption scheme, so you choose between two state systems for the whole case: the traditional system with a large homestead exemption, or an alternative system with a wildcard that often suits renters. You generally must have lived in California for at least 730 days to use these exemptions. Under the alternative system, the dollar amounts adjust every three years, so your attorney confirms current figures at the time of filing. The value of your non-exempt property sets a floor for what unsecured creditors must receive, so choosing the right system can lower your monthly plan payment.
Chapter 13 Questions Woodland Hills Residents Ask
How fast does the automatic stay take effect?
The moment your petition is filed. Creditors must stop collection activity, including foreclosure steps, lawsuits, garnishments, and repossession. In an emergency, the firm can often prepare and file a case quickly to stop a sale or levy.
Can I keep my house in Chapter 13?
Most filers do. If you are behind on the mortgage, the plan lets you cure the arrears over three to five years while you resume regular payments. Chapter 13 is also useful when your equity exceeds what the homestead exemption protects.
How long does a Chapter 13 plan last?
Three to five years. The length depends on your income relative to the California median and on how much you need to pay creditors, including arrears and priority debts.
What if I miss a plan payment?
Missed payments can lead the trustee to seek dismissal of the case, which would end the stay and expose you to creditors again. If your income changes, talk to your attorney early, because plans can sometimes be adjusted.
Will my employer find out?
Not automatically. They may learn if they are a creditor, if a garnishment has to stop, or if plan payments are deducted from your paycheck. California and federal law prohibit an employer from firing you solely because you filed for bankruptcy.
How long does Chapter 13 stay on my credit report?
Credit bureaus typically remove a Chapter 13 after 7 years, compared with up to 10 years for Chapter 7. Its effect on your score fades well before it drops off, especially if you pay bills on time during the plan.
Can I file Chapter 13 if I recently received a Chapter 7 discharge?
Yes, after a 4-year wait following a prior Chapter 7. Between two Chapter 13 filings the wait is 2 years. Your attorney will check the dates against your prior case before recommending a filing.
Does Chapter 13 stop a wage garnishment that is already taking money from my paycheck?
Yes. The stay halts the garnishment when the case is filed. Outside of bankruptcy, a garnishment on an ordinary judgment is capped by statute, and you can ask the court to exempt more of your earnings if you can prove they are necessary to support your family. Your employer also cannot fire you because of a garnishment on a single judgment.
What happens to a collection lawsuit if I file after being served?
The suit is halted by the stay. Before filing, call the firm before your response deadline passes, because a missed answer can result in a default judgment. A California money judgment is enforceable for 10 years and can be renewed, so a judgment left alone does not simply disappear.
Can money in my bank account be taken before I file?
A levy on your account is subject to an automatic exemption for a set amount per judgment debtor, which the bank must apply without you filing a claim. That exemption does not apply to levies for wages owed to another person, support, or debts owed to the state. Filing the case stops most levies going forward.
Is Chapter 13 worth it if I could do Chapter 7?
Not always, and the firm will tell you if it is not. Chapter 7 is faster, but it does not cure mortgage arrears and may not protect large equity. Chapter 13 makes sense when keeping property or paying priority debts outweighs the longer timeline.
Serving Woodland Hills and the Surrounding Communities
Wadhwani & Shanfeld represents Chapter 13 clients from Woodland Hills across the west San Fernando Valley and beyond. That includes Encino, Reseda, Northridge, Granada Hills, North Hills, Mission Hills, Sylmar, San Fernando, North Hollywood, Van Nuys, and Sherman Oaks, plus Hollywood and Santa Monica on the Westside. The firm also serves Santa Clarita, Lancaster, Palmdale, Acton, and the Antelope Valley.
Across Los Angeles County, clients come from Los Angeles, Long Beach, Lakewood, Torrance, Compton, Inglewood, Gardena, Norwalk, Bellflower, Paramount, Cerritos, Signal Hill, Huntington Park, Pomona, Claremont, Glendora, and West Covina. In Orange County, the firm serves Anaheim, Santa Ana, Garden Grove, Buena Park, Fullerton, Huntington Beach, Westminster, Costa Mesa, Newport Beach, Tustin, La Habra, Placentia, Mission Viejo, and Laguna Niguel. In the Inland Empire, it serves Ontario, Rancho Cucamonga, Upland, Fontana, San Bernardino, Chino, Chino Hills, Montclair, Riverside, and the Coachella Valley.
Speak With a Woodland Hills Chapter 13 Bankruptcy Attorney Today
If a foreclosure date, a garnishment, or a stack of creditor letters is pushing you toward a decision, a conversation with a Woodland Hills Chapter 13 bankruptcy attorney at Wadhwani & Shanfeld can show you whether a repayment plan fits your income and your property. Call for a free consultation and speak directly with an attorney. The firm will review your situation and explain every option inside and outside of bankruptcy, and tell you honestly which path gives you the best fresh start.
You can handle your entire case remotely by phone, email, video, or online chat, or meet in person if you prefer. Reach out today, especially if a sale date, levy, or repossession is close.
