Inglewood Bankruptcy Lawyer
The goal for most people in Inglewood who search for an Inglewood bankruptcy lawyer is simple: make the calls stop, keep the paycheck, the car, and the roof, and get to a point where the debt no longer runs the household. Wadhwani & Shanfeld is a consumer bankruptcy and debt relief law firm that handles Chapter 7, Chapter 13, debt settlement, foreclosure defense, wage garnishment, and creditor lawsuits for Inglewood residents and families throughout Los Angeles County and Southern California.
Inglewood has a particular mix of debt pressures. Homeowners who bought years ago now sit on meaningful equity and a mortgage that may be behind. Renters and workers in the airport, hospitality, and stadium-area economy often live on income that shifts from month to month, and a missed shift can turn into a missed payment and then a lawsuit. The right filing depends on which of those describes you, and the answer is rarely the same twice.
Sometimes the best move is not bankruptcy at all. A debt that is past the time limit for suing, a judgment that is close to expiring, or a lender willing to settle for less may solve the problem without a court filing. We walk through all of it before recommending anything.
Chapter 7 or Chapter 13: Matching the Filing to an Inglewood Household
Chapter 7 erases qualifying unsecured debt such as credit cards, medical bills, personal loans, and deficiency balances after a repossession. Eligibility turns on the means test, which compares your household income to the California median for a family your size and then looks at your actual allowed expenses. Most Chapter 7 cases wrap up in roughly four months, and the large majority of filers keep their property because California’s exemption rules cover it.
Chapter 13 is a repayment plan, usually spread over three to five years, built around steady income. It suits people who are behind on a mortgage or car loan and want to catch up without losing the asset, people whose income is too high for Chapter 7, and people carrying priority debts like back taxes or support arrears that Chapter 7 cannot wipe out. Once the court confirms the plan, creditors are bound by it.
A bankruptcy attorney in Inglewood has to run both analyses against your real numbers.
Why Choose Wadhwani & Shanfeld for Your Inglewood Bankruptcy Case
The firm serves clients across Los Angeles, Orange, Riverside, and San Bernardino Counties, including Inglewood and the surrounding South Bay and South Los Angeles communities. Clients get direct access to an attorney from the first call, free consultations, and the choice of meeting in person or handling the entire case by phone, email, video, or online chat. When a garnishment, foreclosure sale, or repossession is only days away, the firm moves fast.
The firm is led by two Board-Certified Specialists in Consumer Bankruptcy, certified through the American Board of Certification, with more than 90 years of combined legal experience. Raj Wadhwani, a founding shareholder and partner and 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. Greg Shanfeld, also a 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.
That depth matters in practice. Choosing an exemption system, timing a filing around a sale date, and answering a trustee’s questions are all places where a mistake can cost property or a discharge. The firm files in every division of the U.S. Bankruptcy Court for the Central District of California, so the court that hears your case is one our attorneys already know.
Debt Situations We Handle for Inglewood Residents
- Credit Card and Medical Debt: Unsecured balances that have outgrown your income are the classic Chapter 7 case. Medical bills from an emergency or a long illness are discharged the same way as card debt.
- Wage Garnishment: Under California law, an ordinary judgment garnishment is capped at the lesser of 20 percent of weekly disposable earnings or a figure tied to the minimum wage, and if the local minimum wage is higher than the state rate, the local rate is used. A bankruptcy filing stops most garnishments the day the case is filed.
- Creditor Lawsuits and Judgments: A collection suit must be answered in writing, or the court can enter judgment even on an expired claim. We decide whether to respond, negotiate, or file, and we deal with judgments already entered.
- Foreclosure Defense: A foreclosure follows a fixed timeline after the notice of default is recorded. Chapter 13 can stop a scheduled sale and spread the missed payments over the life of a plan, and in some cases a wholly unsecured second mortgage can be stripped off.
- Car Repossession and Deficiencies: After a repossession, the lender owes written notice before disposing of the vehicle, and a deficiency claim can be challenged if the notice was late or defective. Remaining deficiency balances can be discharged.
- IRS Tax Debt: Some older income tax debt can be eliminated if it meets timing rules, and we also represent clients with the IRS to stop levies and set up payment arrangements.
- Second Mortgage and Loan Modification: Second mortgage settlements and loan modifications can lower what you pay without surrendering the home.
- Small Business Debt: Owners who guaranteed business loans or ran a sole proprietorship often carry personal liability, and we address both the personal and business side.
What to Do Right Now if Debt Has Caught Up With You in Inglewood
Start by gathering paper. Collect every summons, demand letter, notice of default, notice of sale, and garnishment order, and note the dates on each. Deadlines in debt cases are short, and a lawsuit has a response deadline that does not move because you were scared to open the envelope. Missing it can lead to a default judgment, even on a debt that is too old to sue on.
If you were sued, the case will usually be in Los Angeles County Superior Court, which has a courthouse in Inglewood and others across the county. Do not ignore the papers, and do not make a payment on an old account before you talk to us. In California, a payment cannot revive a debt that is already time-barred, but a signed written acknowledgment can restart the clock on one that is still alive. Written contract and book account claims generally carry a four-year limit, and oral contracts two years, though the expired deadline is a defense you must raise yourself.
If a bank account has been levied, know that California automatically protects a set amount in a deposit account for each judgment debtor without any claim being filed, but that protection does not cover levies for wages owed to another, support, or debts owed to the state. If your paycheck is being garnished, you can also ask the court to exempt the portion you can show is needed to support your family.
If a house is at risk, track the foreclosure calendar. A sale cannot be set until roughly three months and 20 days after the notice of default is recorded, the notice of sale must be mailed and posted at least 20 days before the sale, and a borrower can reinstate a monetary default up to five business days before it. 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 a 10-day extension of the redemption period.
Then call. Because we offer free consultations and speak with clients directly, you can have an attorney review your documents the same day. If a filing is needed, the case is filed in the U.S. Bankruptcy Court for the Central District of California, and your street address, not a P.O. box, determines which division handles it. Inglewood filers are generally in the Los Angeles Division, which we will confirm before filing.
California’s Two Exemption Systems and What Stays Yours
California has opted out of the federal exemption list, so filers pick one of two state systems and must use that one for the entire case. The standard system under Code of Civil Procedure section 704 carries a homestead exemption set by a formula tied to the county’s median single-family home price, with a statutory floor and a ceiling that both adjust each year for inflation. That makes it the stronger choice for most homeowners with real equity.
The alternative system under section 703.140(b) has a much smaller residence exemption but adds a flexible wildcard that can be applied to any property, which often suits renters and people with little or no home equity. Its dollar amounts adjust every three years for inflation. To use California’s exemptions at all, you generally must have lived in the state for at least 730 days.
Picking between the two is not a formality. It depends on your equity, your vehicle, your tools of the trade, your retirement accounts, and what a trustee could reach. We work through every exemption before you file, which is why most of our clients keep what they own.
Inglewood Bankruptcy Questions Answered
How fast does filing stop a garnishment or foreclosure?
The automatic stay takes effect the moment the petition is filed. It halts lawsuits, wage garnishments, bank levies, repossessions, and foreclosure proceedings. In an emergency we can often prepare and file quickly to stop a sale or levy.
Will I lose my Inglewood home in bankruptcy?
Most clients keep their homes. In Chapter 7, the question is whether your equity fits within California’s homestead exemption and whether you are current on the mortgage. If you are behind or have more equity than the exemption covers, Chapter 13 lets you keep the home and catch up over time.
What debts can bankruptcy eliminate?
Most unsecured debt can be discharged, including credit cards, medical bills, personal loans, payday loans, and deficiency balances. Some older income taxes can go as well. Child support, alimony, most student loans, most government fines, and debts for injuries caused by drunk driving generally cannot.
Does a bankruptcy filing cost me my job?
Your employer is not automatically notified, though it may learn if it is a creditor or if garnishment stops. California and federal law prohibit an employer from firing you solely because you filed. A separate California rule also bars firing an employee because wages were garnished for a single judgment.
How long does bankruptcy stay on my credit report?
A Chapter 7 can remain for up to 10 years from the filing date, and a Chapter 13 is typically removed after 7 years. The effect on your score fades well before then, especially with on-time payments and low balances.
Can I file again if I filed before?
Yes, subject to waiting periods. It is 8 years between Chapter 7 filings, 4 years to file Chapter 13 after a Chapter 7, and 2 years between Chapter 13 filings. Filing Chapter 7 after a Chapter 13 generally requires 6 years, though that can be shortened if the plan paid enough to unsecured creditors.
A collector sued me over a debt from years ago. Is it too old?
Possibly. A written contract or book account debt generally carries a four-year limit to sue and an oral contract two years. But the court will not raise that defense for you, so you must file a written answer. A payment cannot revive an already expired debt, but a signed written acknowledgment can restart the clock on one still within the limit.
I have a judgment against me from years ago. Does it ever expire?
A California money judgment is enforceable for 10 years from entry. It can be renewed by filing an application, though recent changes limit renewal to one time, for five years, on certain medical expense judgments and personal debt judgments under specified amounts. A judgment is also something bankruptcy can address.
Can a debt collector who broke the rules be held accountable?
California’s Rosenthal Act covers original creditors as well as third-party collectors. A consumer can recover actual damages and, if the collector acted willfully and knowingly, an additional $100 to $1,000, plus reasonable attorney fees. The suit must be brought within one year, and a collector can avoid liability by correcting a curable violation within 15 days of learning of it.
Is bankruptcy worth it if I have only a few thousand dollars of debt?
Sometimes not, and we will say so. Settlement or negotiation may solve a smaller problem more cheaply. If the debt is tied to a lawsuit, a garnishment, or a foreclosure date, filing can still make sense, which is why the consultation looks at the whole picture rather than just the balance.
Can a petition preparer or notary handle my filing?
A bankruptcy petition preparer can type information into forms but cannot give legal advice, select exemptions, or represent you if a creditor or trustee raises an issue. Errors in a filing can cost you property or your discharge.
Serving Inglewood and the Surrounding Los Angeles County Communities
Wadhwani & Shanfeld represents bankruptcy clients from Inglewood and throughout Los Angeles County. That includes neighbors and nearby communities such as Gardena, Torrance, Compton, Hollywood, and Santa Monica, along with Long Beach, Lakewood, Norwalk, Bellflower, Paramount, Cerritos, Cypress, Signal Hill, and Huntington Park. Across the San Fernando Valley and the Westside, we serve Sherman Oaks, Van Nuys, Encino, Woodland Hills, Reseda, Northridge, Granada Hills, North Hollywood, North Hills, Mission Hills, San Fernando, and Sylmar, as well as Santa Clarita, Lancaster, Palmdale, Acton, and the Antelope Valley.
Our reach extends into the Inland Empire and eastern San Gabriel Valley, including 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 help clients in Anaheim, Santa Ana, Garden Grove, Buena Park, Fullerton, Huntington Beach, Westminster, Costa Mesa, Newport Beach, Tustin, La Habra, Placentia, Mission Viejo, and Laguna Niguel. Wherever you live, an attorney can review your debt and your options with you directly, in person or remotely.
Talk With an Inglewood Bankruptcy Attorney Today
If calls, letters, a garnishment, or a court date are piling up, speak with an Inglewood bankruptcy attorney at Wadhwani & Shanfeld before the next deadline passes. The consultation is free, you will speak directly with an attorney, and you can handle it by video or phone if that is easier. We will tell you plainly whether Chapter 7, Chapter 13, settlement, or another path gives you the best chance at a lasting fresh start. Call today to get started.
