Sherman Oaks Rebuilding Credit Lawyer
The goal behind a search like this is rarely just a higher number on a credit report. It is being able to rent an apartment without a co-signer, finance a car at a rate that does not punish you, and eventually qualify for a mortgage. Wadhwani & Shanfeld, a consumer bankruptcy and debt relief law firm, helps people across Sherman Oaks, the San Fernando Valley, and the rest of Southern California reach that point, starting with the debt problems that wrecked their credit in the first place. A Sherman Oaks rebuilding credit lawyer works on the cause, not just the score.
That distinction matters. Credit repair companies promise to scrub negative items, but accurate late payments, charge-offs, and collection accounts generally do not disappear because someone sends a dispute letter. What changes a credit profile for good is resolving the debts themselves: eliminating them through Chapter 7, restructuring them through Chapter 13, or settling them for less than you owe. Once the pressure of garnishments, lawsuits, and collection calls is gone, the rebuilding can start in earnest.
Filing bankruptcy does not mean your credit is finished. For many people who are already months behind with accounts in collections, the score is already low, and a discharge gives them a clean base to build from. The sections below cover how the process works for Sherman Oaks residents, what to do while your credit is still under pressure, and what rebuilding realistically looks like afterward.
Why Choose Wadhwani & Shanfeld for Credit Rebuilding in Sherman Oaks
Wadhwani & Shanfeld has helped more than 30,000 individuals and families get out from under debt and start over. The firm is led by two Board-Certified Specialists in Consumer Bankruptcy through the American Board of Certification, with more than 90 years of combined legal experience. It handles Chapter 7, Chapter 13, debt settlement, foreclosure defense, wage garnishment, creditor lawsuits, and IRS tax debt for clients throughout Los Angeles, Orange, Riverside, and San Bernardino Counties, including Sherman Oaks and the surrounding San Fernando Valley communities.
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. Both hold board certification, a distinction few attorneys in the country earn.
For someone whose goal is a healthier credit profile, that depth matters in practical ways. The choice of chapter, the exemption system, and the timing of the filing all affect how quickly you can rebuild. Clients get direct access to an attorney from the first call, fast action when a garnishment, foreclosure sale, or repossession is days away, and a plan built around income, property, and goals rather than a one-size-fits-all filing. Consultations are free, and the whole case can be handled by phone, email, video, and online chat, with 100% virtual consultations available.
Debt Situations That Damage Credit and Call for a Fix
- Maxed-Out Credit Cards: High balances, missed payments, and charge-offs drag scores down for years. Chapter 7 can discharge qualifying card debt, and Chapter 13 can fold it into a single monthly payment over three to five years.
- Medical Bills in Collections: A hospital stay or surgery can put unsecured medical debt into collections quickly. These balances are generally dischargeable, which stops the collection calls and lets you rebuild from a lower balance.
- Creditor Lawsuits and Judgments: A judgment from a collection firm can lead to wage garnishment or a bank levy. Filing bankruptcy triggers the automatic stay, which halts lawsuits, judgments, levies, and garnishments.
- Behind on the Mortgage: Missed payments damage credit and can lead to foreclosure. Chapter 13 lets you catch up over time and keep the home, and in some cases strip off a wholly unsecured second mortgage.
- Car Repossession and Deficiency Balances: A repossession hits credit hard, and the deficiency left after the sale is often dischargeable in Chapter 7.
- Personal and Payday Loans: High-interest loans can spiral quickly. Most are unsecured and can be discharged or settled.
- IRS and Tax Debt: Tax liens and levies create their own credit and cash-flow problems. Some older income tax debt can be eliminated if it meets specific timing rules, and the firm also represents clients with the IRS to stop levies and arrange payment plans.
- Student Loans: Most student loans cannot be discharged, but the firm works on strategies for managing them alongside the rest of your debt.
What Rebuilding Actually Looks Like After Debt Relief
A discharge or a completed settlement is a starting line, not a finish. Many of our clients see their credit scores begin to recover within the first year by using a secured card responsibly, paying every bill on time, and keeping balances low. Those three habits do more than any paid service, because payment history and utilization drive most of a score.
The timeline on the credit report itself is predictable. A Chapter 7 bankruptcy can stay on your report for up to 10 years from the filing date, and the bureaus typically remove a Chapter 13 after 7 years. The impact on your score fades well before then, especially when new positive accounts are layered on top. People who already had missed payments and collections often see a smaller drop from filing than people who file with excellent scores.
Big goals take longer. Depending on the loan type, buying a home can be possible within a few years of discharge. That is why it helps to talk through your rebuilding plan with an attorney before you file, not after. What you keep, what you owe, and how your accounts are handled all shape what lenders see later.
What to Do While Your Credit Is Still Under Pressure
Start by gathering your paperwork: recent pay stubs, a list of every creditor, any lawsuit papers, garnishment notices, and anything about your mortgage or car loan. Then call an attorney before you pay a credit repair company or take out a consolidation loan. Those moves can cost money without fixing the underlying problem, and some can complicate a later filing.
Deadlines drive everything. If you have been served with a creditor lawsuit, there is a deadline to respond, and missing it can result in a default judgment. The statute of limitations on a debt is a defense you must raise in a written answer; the court will not apply it automatically. In California, the limit is generally four years on written contract debt and two years on oral contract debt. A payment on a time-barred debt does not revive it, and only a signed written acknowledgment can restart the clock. If you are not sure whether a debt is old enough, an attorney can check before you respond to the collector.
If your wages are being garnished, bankruptcy stops most garnishments the moment the case is filed. If a foreclosure is underway, California law allows a mortgage default to be reinstated until five business days before the sale date, and the notice of sale must be mailed and posted at least 20 days before the sale. If your car has been repossessed, the lender must give at least 15 days’ written notice before disposing of it, and you can ask in writing for the redemption period to be extended by 10 days. Acting inside these windows preserves options you lose later.
Sherman Oaks filers are generally assigned to the San Fernando Valley Division of the U.S. Bankruptcy Court for the Central District of California, which sits in Woodland Hills. Division assignment depends on your zip code, so we confirm it before filing. State court collection cases from the Valley are typically heard in Los Angeles County Superior Court, with courthouses in Van Nuys and Chatsworth among those serving the area. Whichever court you are in, the automatic stay applies the moment a bankruptcy case is filed.
Exemptions, Judgments, and the Fine Print That Protects What You Own
Many people avoid filing because they worry about losing property. California does not use the federal bankruptcy exemptions. Instead, filers choose between two state exemption systems for the entire case. One offers a homestead exemption that is the greater of a statutory floor or the county’s prior-year median single-family home price, subject to a ceiling, and that figure adjusts annually. The other offers a flexible wildcard that often works better for renters. To use California’s exemptions, you generally must have lived in the state for at least 730 days. Choosing the right system is one of the most important decisions in a case, and our board-certified attorneys make it with care.
Judgments matter for credit rebuilding too. A California money judgment is enforceable for 10 years, and can be renewed, though recent changes limit renewal of certain medical and personal debt judgments to one five-year extension. Wage garnishment on an ordinary judgment is capped by formula at the lesser of 20% of weekly disposable earnings or a figure based on the minimum wage, and you can ask the court to exempt earnings needed to support your family. Your employer cannot fire you because of garnishment for a single judgment.
Bank levies have a built-in protection: an automatic exemption for a set amount in your deposit account that the bank must apply before turning money over. It does not cover levies for child or spousal support, wages owed to another, or debts owed to the state. If a collector or original creditor has crossed legal lines, California’s Rosenthal Act lets consumers recover actual damages, with an additional award of $100 to $1,000 for willful and knowing violations and attorney fees for a prevailing consumer. Unlike the federal law, it reaches original creditors as well as third-party collectors, but the suit must be brought within one year.
Questions Sherman Oaks Residents Ask About Rebuilding Credit
Can a lawyer remove accurate negative items from my credit report?
No lawyer can legitimately remove accurate information. What an attorney can do is eliminate or restructure the debts behind those items, dispute genuine errors, and give you a plan so new positive history builds quickly.
Is bankruptcy a bad idea if I want good credit later?
Often it is the opposite. If you are already behind with accounts in collections, your score is likely low, and a discharge removes the balances that keep it there. Many clients see recovery begin within the first year.
How soon can I start rebuilding after a Chapter 7 discharge?
Right away. Most Chapter 7 cases are completed in roughly four months, and a secured card, on-time payments, and low balances can start moving your score soon after.
Will I keep my home and car if I file?
Most of our clients keep their property. California’s exemptions protect home equity, vehicles, household goods, tools of the trade, and retirement accounts, and we work through every available exemption before filing. Chapter 13 is an option when equity exceeds what exemptions cover or you are behind on payments.
How long will bankruptcy stay on my credit report?
A Chapter 7 can remain for up to 10 years from filing, and Chapter 13 is typically removed after 7 years. The effect on your score fades well before those dates.
Can I buy a home after bankruptcy?
Depending on the loan type, it can be possible within a few years of discharge. Lenders look at your waiting period, your on-time payment history since, and your debt load, so it helps to plan with an attorney.
Should I settle my debts instead of filing?
Sometimes. We negotiate directly with lenders to settle debt for less than you owe, and we will tell you honestly if bankruptcy is not the better fit. Because we handle both, the recommendation is based on your situation.
Does paying a small payment on an old debt restart the statute of limitations?
No. In California, a payment cannot revive a debt that is already time-barred. Only a signed written acknowledgment restarts the clock, so be careful what you sign when a collector calls.
Can I file again if I have filed bankruptcy 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 I filed?
Not automatically. They may learn 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.
Do I have to come in to start the process?
No. We handle cases fully by phone, email, video, and online chat, and you can speak directly with an attorney on your first call.
Is it safe to use a petition preparer or notary instead of an attorney?
A petition preparer can type forms but cannot give legal advice, choose exemptions, or represent you if a trustee or creditor objects. Mistakes can cost you property or your discharge.
Serving Sherman Oaks and Valley-Area Credit Rebuilding Clients
We represent clients in Sherman Oaks and throughout the San Fernando Valley, including Van Nuys, Encino, Woodland Hills, Reseda, Northridge, Granada Hills, North Hollywood, North Hills, Mission Hills, San Fernando, and Sylmar. Westside and nearby communities such as Hollywood and Santa Monica are part of our reach as well, along with Los Angeles and Santa Clarita.
Across Los Angeles County, we also serve Long Beach, Lakewood, Torrance, Compton, Inglewood, Gardena, Norwalk, Bellflower, Paramount, Cerritos, Cypress, Signal Hill, Huntington Park, and the Antelope Valley communities of Lancaster, Palmdale, and Acton. In the Inland Empire, our clients live in Ontario, Rancho Cucamonga, Upland, Fontana, San Bernardino, Pomona, Chino, Chino Hills, Montclair, Claremont, Glendora, West Covina, Riverside, and the Coachella Valley. In Orange County, we serve Anaheim, Santa Ana, Garden Grove, Buena Park, Fullerton, Huntington Beach, Westminster, Costa Mesa, Newport Beach, Tustin, La Habra, Placentia, Mission Viejo, and Laguna Niguel.
Talk to a Sherman Oaks Credit Rebuilding Attorney Today
If debt is holding your credit down, the fastest way forward is a straight conversation about your options. A Sherman Oaks credit rebuilding attorney at Wadhwani & Shanfeld will review your income, debts, and property, explain every path inside and outside of bankruptcy, and tell you honestly which one gives you the best fresh start.
Call to schedule your free consultation and speak directly with an attorney. We can meet by phone or video, so you can start today from wherever you are.
