Bakersfield Chapter 13 Bankruptcy Lawyer

Neil Schwartz Has Personally Prepared Thousands of Bankruptcy Cases for Kern County Families Since 2001

Neil E. Schwartz has practiced bankruptcy law since 2001 and has personally prepared thousands of cases for families throughout Bakersfield and Kern County. Schwartz Law is one of the most referred bankruptcy firms in Southern California, and Neil attends every 341 meeting of creditors himself, giving Chapter 13 clients a single experienced attorney at every step rather than a rotating staff. If you’re dealing with foreclosure threats, wage garnishment, or creditor calls that won’t stop, Chapter 13 may offer a path to keep your home and other property while catching up on missed payments under court supervision.

Chapter 13 is a reorganization bankruptcy that lets debtors with regular income propose a three-to-five-year repayment plan rather than liquidating assets. Bakersfield and Kern County residents facing foreclosure or repossession often turn to Chapter 13 specifically because it preserves property while bringing overdue accounts current. Free consultations are available by phone or online.

Call Schwartz Law today at (661) 218-1118 or contact us online to schedule a consultation with our Chapter 13 bankruptcy attorney in Bakersfield.

Understanding the Chapter 13 Bankruptcy Process

An individual who is badly in debt can typically file under Chapter 7 (liquidation) or Chapter 13 (reorganization). In some cases, Chapter 12 (family farmer reorganization) or Chapter 11 (reorganization for businesses or individuals whose unsecured debt exceeds statutory limits) may also apply. Creditors can force debtors into bankruptcy under Chapters 7 or 11 through an involuntary proceeding, but Chapter 13 can only be filed voluntarily.

Not every debtor qualifies for Chapter 13. You must have regular income and enough disposable income to fund a viable repayment plan. Section 109(e) of Title 11 of the United States Bankruptcy Code sets debt eligibility limits for Chapter 13 filers. Because these limits adjust every three years based on the Consumer Price Index, we recommend confirming current figures at the U.S. Courts website or asking during your consultation.

Under Chapter 13, the debtor proposes a written plan to pay creditors over three to five years. Under 11 U.S.C. § 1326, repayment must begin within 30 days of filing, even before the court confirms the plan. During this period, the automatic stay prevents most creditors from taking collection action outside the bankruptcy court, and the debtor generally keeps their property throughout the process.

Chapter 13 Advantages over Chapter 7

Chapter 13 offers several legal tools unavailable under Chapter 7 liquidation. Depending on your situation, these can make reorganization the stronger choice:

• Stopping foreclosure: Chapter 13 is designed to halt foreclosure proceedings and may allow you to catch up on mortgage arrears over the life of the plan, giving you a structured path to seek to keep your home.
• Lien stripping: If your property’s value is less than the balance owed on your first mortgage, a second mortgage or HELOC may be stripped off through the Chapter 13 process in some cases.
• Cram-down of secured debt: In some circumstances, secured debt can be reduced so repayment is based on the collateral’s current market value rather than the full loan balance.
• Co-debtor protection: The automatic stay in Chapter 13 extends to co-signers on consumer debts, a protection Chapter 7 doesn’t provide.
• Domestic support arrears: Past-due child support or alimony can be brought current through the repayment plan.
• Super-discharge: Certain debts dischargeable in Chapter 13 but not in Chapter 7 include debts from property settlements in divorce or separation and debts for willful and malicious injury to property.

Chapter 13 Disadvantages & Credit Impact

Under the Fair Credit Reporting Act, all bankruptcy cases may be reported for up to ten years from the filing date. However, the major credit bureaus generally remove Chapter 13 filings after approximately seven years, meaning a Chapter 13 filing typically comes off your credit report sooner than a Chapter 7. During an active case, you generally can’t take on new credit without bankruptcy court approval, and some lenders may be reluctant regardless. After discharge, FHA mortgage loans may become available approximately 24 months post-discharge; Fannie Mae and Freddie Mac loans generally require 36 months. These timelines reflect general guidelines and are subject to individual lender requirements.

One detail that surprises many clients: attorney fees in Chapter 13 are often paid through the plan rather than entirely upfront, so the out-of-pocket cost to get started may be lower than expected. This credit impact also isn’t unique to Chapter 13. It applies similarly to those in or recently discharged from Chapters 7, 11, and 12.

How Neil Schwartz Guides Bakersfield Clients Through Chapter 13

Filing in the U.S. Bankruptcy Court for the Eastern District of California comes with procedures and trustee practices that matter to the handling of your case. Chapter 13 hearings for Kern County filers are held at the Bakersfield Federal Courthouse, and Neil appears there regularly. Because he handles these cases personally rather than delegating to junior attorneys, he understands how local trustees approach plan confirmation, missed payments, plan modifications, and required documentation from direct courtroom experience.

At your initial consultation, we review your income, expenses, assets, and recent financial history to assess what repayment plan is realistic. We also discuss your goals regarding your home, vehicles, tax obligations, and other key debts so the plan reflects what matters most to you. Local resources such as the Kern County Department of Human Services provide financial assistance for residents in distress, and we can point you toward relevant community support as part of that conversation.

When you work with our firm on a Chapter 13 case, we:

• Assess your eligibility by reviewing income, disposable income, and debt levels against current statutory limits so you know whether Chapter 13 or another chapter is the better fit.
• Build your repayment plan around your actual budget, addressing mortgage arrears, vehicle loans, tax debts, and unsecured balances in a single monthly payment made through the trustee.
• Attend your 341 meeting of creditors with you, with Neil present personally so you aren’t facing that proceeding with someone who doesn’t know your file.
• Manage trustee communications throughout the plan period, including responding to questions, preparing required documentation, and modifying the plan if your financial circumstances change.

How Chapter 13 Protects Your Assets in Kern County

Many people hesitate to explore Chapter 13 because they fear losing their home, car, or other important property. Upon filing, the automatic stay takes effect immediately and generally lasts the full duration of the plan, halting most collection actions including wage garnishment, foreclosure proceedings, repossessions, and creditor calls. By committing your disposable income to a plan over three to five years, you may be able to catch up on missed payments and keep essential assets that might otherwise be at risk.

The Chapter 13 trustee reviews your budget, property values, and debt amounts to determine whether your proposed plan is feasible. Tax debts, past-due utility accounts, and other obligations that are difficult to manage individually can be consolidated into a single monthly payment made to the trustee. California exemption laws interact with federal exemption rules in Chapter 13 cases, and how judges in the Eastern District of California apply those rules affects what property you’re likely to keep. We help clients prepare accurate schedules, respond to trustee questions, and adjust the plan if circumstances change during the case, such as a job loss or medical event, so you understand how your assets are treated at every stage.

Contact Our Bakersfield Chapter 13 Bankruptcy Attorney

During a free initial consultation, Neil can explain how a repayment plan might address mortgage arrears, vehicle loans, tax debts, and credit card balances within your monthly budget. We work with clients from Bakersfield and nearby Kern County communities to prepare paperwork, attend hearings, and respond to trustee requests so you’re not managing the process alone.

Ready to take the next step? Reach our Bakersfield Chapter 13 bankruptcy attorney online or by phone at (661) 218-1118 to schedule your free consultation.