Chapter 13 Bankruptcy Attorney in Arcadia, CA

Fast Debt Relief Solutions. Chapter 13 bankruptcy lets you keep your home, your car and other property while you repay part or all of your debt over three to five years under court protection. It is often the right choice for San Gabriel Valley homeowners who have fallen behind on the mortgage, people whose income is above the California median, and anyone with property worth more than California’s exemptions protect. Hedtke Law Group files Chapter 13 cases from our office in Arcadia.

Call Now: (626) 593-1558 Free Consultation

Attorney Neil R. Hedtke · State Bar of California #273319 · about 3,000 bankruptcy cases filed since 2010 · West Point graduate and U.S. Army veteran · 5-star rated on Google

When Chapter 13 makes sense

You are behind on your mortgage. Chapter 13 stops a foreclosure sale and spreads the missed payments over the plan while you keep paying the regular monthly mortgage. See stopping foreclosure.
You are behind on a car loan. The plan can cure missed payments, and for vehicles bought more than 910 days before filing, the loan may be reduced to the car’s current value.
Your income is too high for Chapter 7. If you do not pass the means test, Chapter 13 is usually the path to a discharge.
You have equity to protect. In Chapter 13 you keep your property. The plan must pay unsecured creditors at least what they would have received if the property were sold in Chapter 7.
You owe recent taxes or support. Priority debts that Chapter 7 cannot discharge can be paid over the life of the plan while collection stops.

What the plan payment is based on

Your monthly plan payment is built from your actual budget: income, reasonable living expenses, what you must pay to keep your home and car, and any priority debts such as recent taxes. If your household income is below the California median for your family size, the plan usually lasts three years. If it is above the median, it generally lasts five years. Credit card, medical and other unsecured creditors share whatever is left, and the remaining balance on those debts is discharged when you finish the plan.

Chapter 13 has debt limits that are adjusted every few years. We check your total secured and unsecured debt against the current limits at the consultation.

Protection that starts the day you file

The automatic stay begins when the case is filed. It stops foreclosure sales, car repossessions, wage garnishments, bank levies, collection lawsuits and creditor calls. Chapter 13 also has a co-debtor stay: in most consumer debts, creditors must also stop collecting from a relative or friend who co-signed the loan, as long as the plan provides for that debt.

A second mortgage or home equity line can sometimes be treated as unsecured debt in Chapter 13 if the home is worth less than the balance on the first mortgage. When that applies, the second loan is paid like a credit card and removed from the property when the plan is completed.

Chapter 13 or Chapter 7?

Chapter 7 is faster and usually costs less, and most cases end in about four months. But Chapter 7 does not let you catch up on a mortgage or car loan, and it does not protect property worth more than the exemptions. Chapter 13 takes longer and requires a monthly payment, but it can save a home or car that Chapter 7 cannot. We run both options with your numbers at the free consultation. Read our overview of bankruptcy options in Arcadia for more.

How the process works

Free consultation by phone or at our Arcadia office. Bring recent pay stubs, your last two tax returns, mortgage and car loan statements, and any foreclosure or garnishment notices.
We run the means test, value your home and car, and design a plan payment that fits your budget.
You complete the credit counseling course and we file your petition and plan. Collection stops immediately under the automatic stay.
Your first plan payment to the Chapter 13 trustee is due within 30 days of filing.
You attend the meeting of creditors with the trustee. We prepare you in advance and attend with you.
The court holds a confirmation hearing. Once the plan is confirmed, you make your monthly payment for three to five years.
When the plan is complete, the court enters your discharge.

Your attorney

Neil R. Hedtke graduated from the United States Military Academy at West Point in 1992 and earned his law degree at the University of La Verne College of Law. He was admitted to the California bar in 2010 and has filed about 3,000 bankruptcy cases since. You work with him directly from the first consultation to the end of your case. Read more about Mr. Hedtke or verify his license on the State Bar of California website.

Common questions

Can Chapter 13 stop a foreclosure sale?

Yes, if the case is filed before the sale. The automatic stay stops the sale, and the plan lets you pay the missed mortgage payments over time while you keep making your regular payment.

How long does a Chapter 13 plan last?

Three years if your household income is below the California median for your family size, and generally five years if it is above. Some plans can be completed early by paying the full amount required.

Will I lose my house in Chapter 13?

Usually not, as long as you make your plan payments and your regular mortgage payments. Keeping the home is one of the main reasons people choose Chapter 13.

Can I file Chapter 13 if my income is too high for Chapter 7?

Yes. Chapter 13 has no income ceiling. It does have debt limits, which we check at the consultation.

Does Chapter 13 protect a co-signer?

For most consumer debts, yes. The co-debtor stay stops creditors from collecting from the co-signer while your case is open, as long as your plan provides for that debt.

Helpful guides

Our Arcadia office

Hedtke Law Group
255 E Santa Clara St, Suite 210, Arcadia, CA 91006
Phone: (626) 593-1558
Monday to Friday 9:00 a.m. to 5:00 p.m., Saturday 10:00 a.m. to 1:00 p.m.
Open in Google Maps

We help clients from Arcadia, Pasadena, Alhambra, Monterey Park, Rosemead, Temple City, San Marino, Duarte, Irwindale and Azusa.