Chapter 13 Bankruptcy in the Inland Empire

Schedule Appointment 24/7: Call 909-915-0181

At a glance: A Chapter 13 case creates a court‑approved repayment plan (typically 36–60 months) that stops most collections through the automatic stay and lets you catch up on mortgage arrears, manage credit cards and other unsecured debts, and address certain back taxes—all while keeping key assets. For many Inland Empire homeowners in San Bernardino County and Riverside County, Chapter 13 is a practical, court‑supervised path to financial stability.

How Chapter 13 Works

Unlike Chapter 7 liquidation, Chapter 13 is designed for individuals (and some sole proprietors) with regular income.

• File the case → The automatic stay generally stops foreclosure, garnishments, repossessions, collection calls, and most lawsuits.
• Propose a plan → You make one monthly payment to the Chapter 13 trustee, who pays creditors according to the plan.
• Confirm the plan → The court confirms if your plan is feasible, proposed in good faith, and complies with the Bankruptcy Code.
• Complete the plan → Make on‑time payments for the plan term and complete required courses; eligible remaining unsecured debt can be discharged.

How debts are prioritized in the plan

• Secured claims (e.g., mortgage, auto loans tied to collateral)
• Priority debts (e.g., recent/certain taxes, child support, alimony)
• Unsecured claims (e.g., credit cards, medical bills)

Local focus: Our Chapter 13 team handles cases across San Bernardino County and Riverside County. We lean on accurate fair‑market valuations, equity analysis, and local lender/servicer practices—critical for options like lien stripping of wholly unsecured junior mortgages or HELOCs.

Who Should Consider Chapter 13?

• Homeowners facing foreclosure who need time to cure arrears and stop a scheduled sale.
• Borrowers with a second mortgage/HELOC that may qualify for lien strip treatment.
• Drivers behind on auto loans seeking to stop repossession and, where allowed, propose a value‑based cramdown or better interest rate.
• Families with back taxes, judgments, or wage garnishment who need structured, court‑supervised repayment.

Eligibility & Required Courses

• Means Test & Plan Length: The means test still matters in Chapter 13—it helps determine your projected disposable income and whether your plan runs 36 or 60 months.
• Courses: You’ll complete credit counseling before filing and a financial management course before discharge.
• Income & Feasibility: You must show enough stable income to support ongoing obligations and the plan payment.

Compare Chapter 7 vs. Chapter 13 · Means Test Details · Contact Us

Stopping Foreclosure & Curing Arrears (Inland Empire)

If you’ve received a Notice of Default or have a sale date, filing Chapter 13 typically halts the sale via the automatic stay so you can propose a plan to repay arrears over time (the classic “cure and maintain” approach):

• Cure & Maintain: Plan payments cover past‑due amounts while you keep paying the ongoing mortgage.
• Charges & Interest: We address allowable default charges and interest based on the Code and your loan documents.
• Loan Workouts: When appropriate, we coordinate forbearance, modification, or post‑discharge refinancing.
• Alternate Solutions: In limited cases, we evaluate deed‑in‑lieu or other negotiated resolutions.

Important: If you had a prior bankruptcy case dismissed within the last year, the automatic stay can be time‑limited or not effective without a court order. We move quickly to protect your home when timing is tight.

Lien Stripping: Second Mortgages & HELOCs

If your home’s fair market value is less than the first mortgage balance, a junior lien (e.g., second mortgage/HELOC) can, in some cases, be treated as unsecured and stripped through the plan. If the court grants the motion and you complete the plan, the junior lien can be removed.

• Valuation is everything: We prepare strong valuation evidence—appraisal, broker opinion, and credible public data.
• Security interest review: We verify the lien’s validity and address any documentation issues.

Talk to a Lien‑Strip Lawyer

Keep Your Car: Cramdown, Interest, & Timing

Chapter 13 can stop repossession and structure manageable payments on your auto loan.

• Cramdown (when allowed): If the car’s market value is less than the loan balance, you may propose to pay the value with an adjusted interest rate, with the rest treated as unsecured.
• 910‑Day Rule: If the vehicle was purchased within ~910 days for personal use, cramdown on principal is generally not available (interest rate adjustments may still be possible).
• Reaffirmation: Typically a Chapter 7 tool—not usually necessary in Chapter 13, where vehicles are paid through the plan.

Disposable Income & Plan Confirmation

Your plan must commit all projected disposable income for the applicable commitment period and be feasible. The trustee and creditors can object on issues such as good faith, feasibility, or improper treatment of claims.

Key treatment points

• Priority debts (certain taxes, child support, alimony) are generally paid in full.
• Unsecured debts (e.g., credit cards, medical bills) may receive partial repayment based on income, assets, exemptions, and equity.
• Judgment liens impairing exemptions may be avoidable.
• Student loans are typically nondischargeable, but plans can stabilize payments during your financial reset.
• Co‑Debtor Stay: Chapter 13 adds protections that may temporarily shield consumer co‑signers while the plan stays current.

Means Test · Chapter 7 vs. Chapter 13 · Fees & Timeline

Typical Timeline

• Free case review (phone, video, or in‑office). Bring credit reports, bills, lawsuits/judgments.
• Complete credit counseling (pre‑filing).
• File the case to trigger the automatic stay.
• Start plan payments (usually within 30 days of filing).
• 341 meeting with the trustee; adjust the plan if needed.
• Confirmation hearing—court approves the plan when requirements are met.
• Make monthly payments for 36–60 months.
• Complete financial management course (pre‑discharge).
• Receive discharge upon completion.

Fees

Chapter 13 attorney fees are structured to be practical: a portion is often paid up front and the remainder through the plan, subject to court approval and local guidelines. We’ll review exact costs transparently. Our attorneys and paralegal team handle filings, deadlines, valuations, and ongoing case management for families and small business owners.

After your case: We’ll discuss credit rebuilding and, when appropriate, coordinate estate planning to help protect family assets.

Helpful External Resources

• U.S. Courts — Chapter 13 Basics: https://www.uscourts.gov/services-forms/bankruptcy/bankruptcy-basics/chapter-13-bankruptcy-basics

IRS — Bankruptcy Tax Guide (Pub. 908): https://www.irs.gov/publications/p908

Chapter 13 FAQs (Inland Empire)

Can Chapter 13 stop a foreclosure that’s days away?

Often, yes. Filing activates the automatic stay, which generally halts foreclosure so you can propose a plan to cure arrears. If a sale is scheduled, speak with a lawyer immediately—timing matters. Contact us.

What is a lien strip and do I qualify?

If your home’s value is less than the first mortgage balance, a wholly unsecured junior lien may be treated as unsecured and stripped in Chapter 13 (subject to valuation and evidence). We assess value, lien validity, and equity.

Will I repay all of my credit cards?

Not necessarily. Many plans repay only a portion of unsecured debt based on your disposable income, assets, exemptions, and equity. The remainder can be discharged at completion.

Can I modify my mortgage during Chapter 13?

Some lenders consider modification during an active case. We coordinate documentation while keeping the plan feasible and can also discuss post‑discharge refinancing.

What about judgments, lawsuits, and wage garnishments?

The automatic stay generally stops ongoing lawsuits, judgment enforcement, and garnishments. Some judgment liens that impair exemptions may be avoidable inside the case.

Is Chapter 13 the same as debt consolidation?

No. Chapter 13 is a federal court process with trustee oversight, an enforceable plan, and the automatic stay—protections private consolidation doesn’t provide.

Will Chapter 13 affect my divorce or family‑law orders?

Child support and alimony are priority debts that must be paid in full and do not replace family‑law court orders. We coordinate with your family‑law counsel when needed.

Contact & Next Steps

Free Consultation — Speak with a Chapter 13 attorney today.

Redlands: (909) 915‑0181 · Palm Springs: (760) 835‑9353

Prefer text? Use the form on our Contact page—include your name, phone, and email so our team can follow up promptly.

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code. This page provides general information and is not legal advice. Reading this page or sending an email/SMS does not create an attorney‑client relationship.