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Long BeachBankruptcy Attorneys
Our Areas Of Practice Ready To Help You With Any Debt Issues You Face
Chapter 7

Our Long Beach chapter 7 attorneys have over 75 years' worth of combined experience helping clients resolve financial problems.

Chapter 13

When these leave you unable to pay your bills and put your home, car, and other property in jeopardy, filing a Chapter 13 bankruptcy can provide a solution.

Debt Settlement

Circumstances beyond your control can cause you to get behind on debts, while high-interest rates and penalties make it impossible to ever get caught up.

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Long Beach Bankruptcy Lawyer

When the calls from collectors start before you finish your morning coffee, or a notice shows up taped to your door, you want an actual answer and not another form letter. Wadhwani & Shanfeld is a consumer bankruptcy and debt relief law firm that handles Chapter 7, Chapter 13, debt settlement, foreclosure defense, wage garnishment, creditor lawsuits, and IRS tax debt for people across Long Beach and Los Angeles County, and for clients in Orange, Riverside, and San Bernardino Counties as well.

Finding the right Long Beach bankruptcy lawyer usually starts with a narrow question: can I stop this one thing? A garnishment hitting your paycheck, a bank levy that froze your account, a lawsuit with a response deadline, a car about to be repossessed, a foreclosure sale on the calendar. Bankruptcy is the one tool that can stop all of those at the same moment, because the automatic stay takes hold the instant a petition is filed. Whether it is also the right tool for you is a separate question, and it deserves an honest answer before anything gets filed.

Long Beach residents file in the federal bankruptcy court for the Central District of California, and the right filing division depends on your home zip code, not on where you work or where your creditor sits. Getting that detail right, along with the exemption system that fits your property, is where a lot of do-it-yourself filings go wrong.

Why Choose Wadhwani & Shanfeld for Bankruptcy Help in Long Beach

Between the firm’s attorneys there are more than 90 years of combined legal experience. For a Long Beach client, that means the person reviewing your income, your property, and your debts has seen your fact pattern many times before, whether it involves a dockworker with irregular overtime, a small business owner with personal guarantees, or a homeowner who fell behind after a medical crisis.

Greg Shanfeld, a University of Southern California law graduate, has handled more than 10,000 bankruptcy cases over three decades. Raj Wadhwani, a Southwestern Law School graduate, 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. The firm files in every division of that court, which matters because Long Beach clients are sometimes surprised to learn their case may not be heard in the building they expected.

Day to day, the firm offers direct access to an attorney from the first call, a free consultation, and fast action when a garnishment, foreclosure sale, or repossession is only days away. You can handle your case entirely by phone, email, video, or online chat, and 100% virtual consultations are available. The plan is built around your income, your property, and your goals rather than a one-size-fits-all filing, and the firm will tell you plainly when bankruptcy is not the best move and settlement or negotiation makes more sense.

Debt Situations That Bring Long Beach Clients to a Bankruptcy Attorney

  • Credit Card and Medical Debt: These unsecured balances are the most common reason for a Chapter 7 filing. Once a card issuer sells the account or sues, the collection pressure escalates quickly, and Chapter 7 can wipe out qualifying balances if you pass the means test.
  • Wage Garnishment: After a creditor wins a judgment, it can take a slice of each paycheck. Filing a Chapter 7 or Chapter 13 case stops most garnishments as of the filing, and your employer is required to stop withholding.
  • Frozen Bank Accounts: A levy can lock up your checking account without warning. Filing bankruptcy halts the levy, and we also look at whether protected funds can be released.
  • Foreclosure and Missed Mortgage Payments: Chapter 13 lets you keep the home and spread the missed payments over three to five years. Some clients with a wholly unsecured second mortgage may be able to remove it as part of the plan.
  • Car Repossession and Deficiency Balances: Chapter 13 can help you keep a vehicle you are behind on, while Chapter 7 can eliminate the deficiency left after a repossession sale.
  • Creditor Lawsuits and Judgments: A summons from a collection firm has a short response deadline. The right move might be to answer the suit, negotiate, or file bankruptcy, and that decision should be made before the deadline passes.
  • IRS Tax Debt: Some older income tax debt can be discharged if it meets specific timing rules, while newer tax debt is often handled through a payment plan or Chapter 13.
  • Small Business and Personal Guarantee Debt: Owners of Long Beach shops, restaurants, and contracting businesses often carry business debt personally, which changes the filing strategy.

What to Do Right Now If Creditors Are Closing In

Start by sorting your paperwork by urgency rather than by creditor. Anything with a date on it comes first: a court summons, a notice of sale, a repossession notice, a garnishment order. In a foreclosure, California law requires that a notice of default be recorded first, and the sale date cannot be set until at least three months and 20 days after that recording. The notice of sale must then be mailed and posted on the property at least 20 days before the sale. You can generally reinstate by paying the missed amount until five business days before the sale, and if a sale is postponed at least 10 business days, the lender must give you written notice of the new date within 5 business days. Those windows are short, so bring every notice you have to the first call.

If a car was repossessed, the lender must send written notice of its intent to sell at least 15 days ahead (20 days if mailed from or to an address outside California). On your written request, the redemption and any reinstatement period are extended by 10 days. A deficiency can be pursued only if the notice went out within 60 days of repossession and included the required items, and you are entitled to an accounting within 45 days after the sale if you ask for one.

If you were served with a lawsuit, do not ignore it. In California, an expired statute of limitations is a defense you have to raise in a written answer. If you do not respond, a court can still enter judgment even on a stale debt. The limit is generally four years on written contracts and book accounts and two years on oral contracts. Be careful about phone calls with collectors: a payment cannot revive a debt that is already time-barred, but only a signed written acknowledgment restarts the clock on one that is not yet expired, so do not sign anything without understanding it.

On bank levies, California automatically protects a set amount in your deposit accounts without you filing a claim, and the bank must apply it before turning money over. That protection does not apply to levies for wages owed to someone else, child or spousal support, or debts owed to the state. The dollar amount is adjusted periodically, so ask us what applies when you call. On wages, an ordinary judgment garnishment is capped at the lesser of 20% of weekly disposable earnings or 40% of the amount by which those earnings exceed 48 times the applicable minimum hourly wage, using a higher local minimum when one applies, and with larger multipliers for biweekly, semimonthly, and monthly pay periods. You can also ask a court to exempt the portion of earnings shown to be necessary to support you and your family. Your employer cannot fire you because wages are garnished for a single judgment.

Once you are ready to file, your home zip code decides which division of the U.S. Bankruptcy Court for the Central District of California handles your case, and the court’s locator tool uses your street address, not a P.O. box. The Los Angeles Division, which sits in downtown Los Angeles, covers most of the county. Orange County cases go to the Santa Ana Division, and Riverside and San Bernardino County cases go to the Riverside Division. We confirm the division before filing so nothing is delayed.

Keeping Your Home, Car, and Paycheck: How California Exemptions Work

Most people worry bankruptcy means losing everything. In practice, most of our clients keep their property, and the reason is exemptions. California has opted out of the federal exemption scheme, so you choose one of two state systems for your entire case: the standard system under CCP section 704, or the alternative under section 703.140(b). You cannot mix and match, and you generally must have lived in California for at least 730 days to use these exemptions.

The section 704 system is built around a homestead exemption that is tied to the countywide median home price, subject to a statutory floor and a ceiling that are adjusted for inflation each year. For Los Angeles County homeowners with real equity, that system often does the heavy lifting. The 703.140(b) system works differently. It offers a smaller dollar amount for a residence and vehicle, plus a flexible wildcard that can cover any asset, and those figures are updated on a three-year schedule. Renters and people with little home equity sometimes do better there, especially if they hold savings or other assets that need cover.

The choice between systems is one of the most consequential decisions in a case, and it should be driven by what you own: home equity, vehicles, tools of your trade, retirement accounts, and cash. Chapter 7 does not require you to give up a protected home, as long as the equity fits inside the exemption and you stay current on the mortgage. If you have more equity than the exemption covers, or you are behind on payments, Chapter 13 can let you keep the property while you repay what the law requires over time.

Chapter 7 or Chapter 13: Choosing the Right Path

Chapter 7 is built for people who cannot keep up with payments and want unsecured debt gone. Most cases finish in roughly four months, and eligibility turns on the means test, which compares your household income to the California median for your household size and then looks at your actual expenses. Credit cards, medical bills, personal loans, payday loans, and repossession deficiencies are all candidates for discharge.

Chapter 13 is for people with steady income who need time and structure. Your debts are reorganized into one monthly payment over three to five years, and creditors are bound once the court confirms the plan. It is often the better fit if you are behind on a mortgage or car loan and want to keep the property, your income is above the Chapter 7 limits, or you owe priority tax debt or support arrears that Chapter 7 cannot eliminate.

Some debts survive either way: child support, alimony, most student loans, most government fines, and debts for injuries caused by drunk driving generally cannot be discharged. Bankruptcy is also not the only route. Debt settlement, loan modification, IRS representation, second mortgage settlements, and student loan strategies are all part of what the firm does, so the recommendation comes from what works for your numbers.

Long Beach Bankruptcy FAQs

How quickly does a bankruptcy filing stop collection activity?

The automatic stay takes effect the moment the petition is filed. Creditors must stop calls, lawsuits, garnishments, bank levies, repossessions, and foreclosure proceedings. In an emergency, we can often prepare and file a case quickly to stop a sale or levy.

Will I lose my home if I file?

Most clients keep their homes. In Chapter 7, the question is whether your equity is covered by California’s homestead exemption and whether you are current on the mortgage. If you have more equity than the exemption protects, or you are behind, Chapter 13 lets you keep the home and catch up over time.

What debts can bankruptcy eliminate?

Most unsecured debts, including credit cards, medical bills, personal loans, payday loans, and deficiency balances after a repossession or foreclosure. Some older income taxes can also be discharged if they meet timing rules. Child support, alimony, most student loans, and most government fines generally survive.

Do I have to come to a physical office to file?

No. We handle cases fully by phone, email, video, and online chat, and 100% virtual consultations are available. If you prefer to meet in person, that is an option too.

How long does bankruptcy stay on my credit report?

A Chapter 7 can remain on your credit report for up to 10 years from filing, and the bureaus typically remove a Chapter 13 after 7 years. The impact on your score fades well before then, and many clients start rebuilding within the first year.

Can I file again if I have filed before?

Yes, subject to waiting periods: 8 years between Chapter 7 filings, 4 years to file Chapter 13 after a Chapter 7, 2 years between Chapter 13 filings, and generally 6 years to file Chapter 7 after a Chapter 13, though that last period can be shortened if your plan paid enough to unsecured creditors.

Will my employer find out?

Not automatically. They may learn of it if they are a creditor, if a garnishment must stop, or if Chapter 13 payments are deducted from your paycheck. California and federal law prohibit firing you solely because you filed.

A collector sued me over a debt from years ago. Is it too late for them to sue?

Possibly. Written contract and book account claims generally carry a four-year limit, and oral contracts two years. But the deadline is a defense you must raise in a written answer. If you do not respond, a court can still enter judgment, so do not ignore the summons even if you think the debt is old.

How long can a creditor enforce a judgment against me?

A California money judgment is enforceable for 10 years from entry, and a creditor can renew it. For medical expense judgments and personal debt judgments below certain principal amounts, recent law limits renewal to a single five-year extension. An old judgment is worth reviewing before you assume it is gone or still live.

Can I sue a collector that broke the rules?

Possibly. California’s Rosenthal Act covers original creditors as well as third-party collectors. A consumer can recover actual damages, an additional $100 to $1,000 if the collector acted willfully and knowingly, and attorney fees if successful. The suit must be brought within one year, and a collector can avoid liability by correcting a curable violation within 15 days of discovering it or receiving written notice. Keep letters, voicemails, and call logs.

Should I hire a bankruptcy attorney or use a petition preparer?

A petition preparer can type your information into forms but cannot give legal advice, choose your exemptions, or represent you if a creditor or trustee raises a problem. Errors can cost you property or your discharge, which is why representation by a board-certified bankruptcy attorney matters.

Can a garnishment really be stopped before the next paycheck?

If we can file in time, yes. Because the stay applies at filing, we move fast when a paycheck, sale date, or levy is close. Call as soon as you see a notice so the timing works in your favor.

Serving Long Beach and the Surrounding Communities

We represent clients in Long Beach and throughout Los Angeles County, including Lakewood, Signal Hill, Cerritos, Norwalk, Bellflower, Paramount, Gardena, Compton, Torrance, Inglewood, and Huntington Park. Our reach continues into Orange County, where we help people in Cypress, Huntington Beach, Anaheim, Santa Ana, Garden Grove, Buena Park, Fullerton, Westminster, Costa Mesa, Newport Beach, Tustin, La Habra, Placentia, Mission Viejo, and Laguna Niguel.

Across the rest of Southern California, we serve the Inland Empire communities of Ontario, Rancho Cucamonga, Upland, Fontana, San Bernardino, Chino, Chino Hills, Montclair, Claremont, Pomona, Glendora, West Covina, Riverside, and the Coachella Valley. In the San Fernando Valley and the Westside we work with clients in Sherman Oaks, Van Nuys, Encino, Woodland Hills, Reseda, Northridge, Granada Hills, North Hollywood, Hollywood, Santa Monica, and Santa Clarita, and in the Antelope Valley in Lancaster, Palmdale, and Acton. Wherever you live, the process works the same way, and most of it can be handled remotely.

Talk With a Long Beach Bankruptcy Attorney Today

You do not have to wait until a sale date or a court deadline is on top of you. A Long Beach bankruptcy attorney at Wadhwani & Shanfeld can review your income, property, and debts, explain every option inside and outside of bankruptcy, and tell you honestly which path gives you the best fresh start. Call to schedule a free consultation and speak directly with an attorney, in person or by video, whichever is easier for you.

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Frequently Asked Questions Get Answers To Your Questions About
Bankruptcy And Debt Reduction
  • Will my employer find out I filed for bankruptcy?

    Your employer will not automatically be notified if you file for bankruptcy. Unless you tell them, there is no reason they will find out about it, except in certain circumstances. For instance, your employer could find out about your bankruptcy in the following situations:

    • If you owe your employer money for some reason, they are a creditor who will be notified of the bankruptcy.
    • If your wages are currently being garnished to pay debts, a bankruptcy filing puts an automatic stay on that garnishment. Your employer will be notified about the stay and ordered to stop garnishing your wages, so they’ll find out about your bankruptcy that way.
    • If you file a Chapter 13 bankruptcy, the repayment plan might include wage deductions to go toward the plan. This is for your benefit to help you stick to the plan, but your employer would become aware of the bankruptcy when ordered to make the deductions.

    Even if your employer does find out you filed for bankruptcy, that fact should not get you fired or subject you to otherwise unfavorable job treatment. If you become the subject of some adverse job action after filing and think you are being unfairly treated, a labor and employment lawyer might be able to help you.

    If you are applying for a new job and have a bankruptcy on your record, this fact will come to light if the employer runs a credit check. Government employers are not permitted to use a bankruptcy against you in making a hiring decision, but private employers are not prohibited from doing so.

  • Can I save my property if I file for bankruptcy?

    Yes! One of the biggest worries we hear from people who have heard the word “liquidation” in connection with bankruptcy is the fear that all of their property will be seized and sold to pay their creditors as part of the bankruptcy process. Chapter 13 does not require you to relinquish any property at all, and in Chapter 7, the bankruptcy trustee can only take assets that are “non-exempt.” We work diligently through the entire list of available exemptions, and in almost every case we handle, our clients don’t lose any of their property as a result of filing for bankruptcy. They do lose most or all of their debt, though!

  • How much of my wages could get garnished by a creditor?

    A creditor with a court order in hand can seek to garnish your wages to cover what you owe them. They can take a pretty big bite out of your wages, but there are limits. Under federal law, creditors cannot garnish more than 25% of your disposable income or the amount of your disposable income that is over 30 times the federal minimum wage. California provides even stronger consumer protections. Here, creditors are limited to 25% of your disposable income or half the amount of disposable income that is over 40 times the California minimum wage (or the local minimum wage if higher than the state minimum). It’s also possible to get an even bigger exemption in California based on a showing of need.

    Filing for bankruptcy invokes an “automatic stay” on all debt collection, including wage garnishments. Wage garnishments stop as soon as you file for bankruptcy, and if the debt behind the garnishment is dischargeable, bankruptcy can make the garnishment go away for good.

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  • What if I previously filed for bankruptcy and need to file again?

    Although bankruptcy can be a great solution to get you out of present financial difficulties, it’s not uncommon that some people later find themselves back in financial trouble. You can file for bankruptcy even if you have done so previously, subject to limitations. After a Chapter 7 discharge, you would have to wait four years to file for Chapter 13 or eight years to file another Chapter 7. After completing a Chapter 13 repayment plan, you would have to wait two years to file for Chapter 13 again or four years to file for Chapter 7.

  • How can I get a bankruptcy removed from my credit report?

    Unfortunately, only the passage of time will take a bankruptcy off your credit report, despite any claims to the contrary from so-called “credit repair” companies. By law, a Chapter 13 bankruptcy stays on your credit report for seven years, while a Chapter 7 bankruptcy stays on your credit report for ten years. That said, you can still start repairing and rebuilding your credit even while the bankruptcy is on your record.

  • Which is better, bankruptcy or debt settlement?

    A lot of factors go into answering that question, including the number of creditors you have and the amounts you owe, who your creditors are, your overall income and expenses, what kinds of property you own, and more.

    We can answer that question for you after we have talked to you and learned about your personal situation. So call us now, and talk to an attorney now to answer your questions and address your concerns.

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If you are in over your head with credit card bills, mortgage payments, personal loans or other debts, you are likely stressed out over the situation, and rightly so. But a lot of worry and anxiety in this situation comes from not knowing your options or what you can expect to happen.

What Clients Are Saying Success Stories In Their Own Words
“They made the Chapter 7 bankruptcy process fast, easy, accurate and efficient”

Raj Wadhwani is an A+ attorney with a wonderful, experienced and highly professional law firm! From the beginning I felt completely comfortable with this firm and knew that I was in good hands. They made the Chapter 7 bankruptcy process... Read More

Steven
“I will not hesitate to recommend this firm and Raj to all my family and friends”

From the very first contact, this firm gave me a good impression. It was the only firm that answered the phone! I said, "this one´s it! They´re serious. They want to work!!" so, from the very beginning I was sold.

Lucy C.
“Would recommend to anyone.”

Very professional, helpful. Would recommend to anyone.

Jose P.
“5 stars”

5 stars very very helpful. walked me through filing .

Joan B.
“Very professional”

Very professional, easy process and always available to answer questions, Thank you

Ikram Kacem N.
“I would give them 100 stars if possible”

I very much liked Raj and his staff and I would give them 100 stars if possible. I was kept informed and very happy with the end results. Thanks again...Steve

Stephen G.
“Wadhwani & Shanfeld was very professional and always answered my questions. We are so grateful for them.”

Wadhwani & Shanfeld was very professional and always answered my questions. We are so grateful for them.

Christopher & Jillian W.
“Thanking Attorney Raj for a thorough and quick solution to my financial issues.”

Thanking Attorney Raj for a thorough and quick solution to my financial issues.

Bernardita A.
“His service was very professional, quick and effective. I highly recommend this firm.”

I filed bankruptcy with the help of Atty. Greg Shanfeld. His service was very professional, quick and effective. I highly recommend this firm. I am extremely grateful for their service.

Benito M.
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Meet Your Legal TeamDedicated To Helping You Get Back On Your Feet After A Financial Crisis
Raj Wadhwani Raj WadhwaniShareholder

Raj is a founding shareholder of Wadhwani & Shanfeld. Raj earned his Juris Doctor from Southwestern University School of Law. He also became a Board-Certified Bankruptcy Specialist by the American Board of Certification in 2009. His vast bankruptcy experience includes over 15,000 bankruptcy case filings for both consumers and businesses. In 1998, Raj helped pilot the Best Case Bankruptcy Software which is used today by bankruptcy attorneys throughout the country. Raj also participated in the pilot program and had the distinction of being the first attorney to electronically file a bankruptcy case in the Central District of California. Beyond bankruptcy and debt settlement, Raj is also very experienced in estate planning. In his spare time, Raj enjoys spending time with his wife and two sons, playing golf, and cheering on the Los Angeles Lakers.

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Greg Shanfeld Greg ShanfeldShareholder

Greg is a founding shareholder of Wadhwani & Shanfeld. He earned his Juris Doctor law degree from the University of Southern California School of Law. Prior to law school, he graduated from the University of California, Los Angeles, with a B.A. in Economics. Greg specializes in bankruptcy law and debt settlement and is a Board-Certified Bankruptcy Specialist with the American Board of Certification. His previous work experience includes serving as a partner and managing attorney at a leading bankruptcy law firm. Prior to that, Greg worked an associate attorney in the real estate division at Stern, Neubauer, Greenwald & Pauly. Greg is extremely knowledgeable about bankruptcy law and has published articles and taught seminars on the subject. When Greg is not in the office, he enjoys spending time with his family, mountain biking, and playing basketball. He also enjoys attending Los Angeles Kings games.

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