San Fernando Bankruptcy Lawyer
The goal for most people who call us is simple: the calls stop, the paycheck stays whole, the house and the car stay put, and the debt that caused all of it gets eliminated or reorganized into something manageable. 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 families in San Fernando, the surrounding Valley communities, and throughout Los Angeles, Orange, Riverside, and San Bernardino Counties. If you need a San Fernando bankruptcy lawyer, you can speak directly with an attorney from your first call.
San Fernando residents have a practical advantage that people in some other parts of Southern California do not: your case is heard in the San Fernando Valley Division of the U.S. Bankruptcy Court for the Central District of California, which sits in Woodland Hills. Your street address, not a P.O. box, determines the division. Filing in the correct one matters, and an attorney who files in every division of this court handles that detail before it can become a problem.
Most of what follows is aimed at the person who has already been served, garnished, or noticed. It covers what each option does, how California’s exemption rules decide what you keep, and what the deadlines look like once collection has started.
Why Choose Wadhwani & Shanfeld for Bankruptcy Help in San Fernando
Wadhwani & Shanfeld has helped more than 30,000 individuals and families resolve debt, and the firm is led by two Board-Certified Specialists in Consumer Bankruptcy through the American Board of Certification. Between its attorneys, the firm carries more than 90 years of combined legal experience. For a San Fernando client, that means the person advising you on exemptions, chapter selection, and timing has made those calls thousands of times. We serve clients across the San Fernando Valley, the Westside, the Antelope Valley, the Inland Empire, and Orange County, and we offer free consultations, including 100% virtual consultations by phone, email, video, or online chat.
Raj Wadhwani, founding shareholder and partner, is a Board-Certified Specialist in Consumer Bankruptcy and a Southwestern Law School graduate. He 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, which is the same court system that will hear your case. Greg Shanfeld, also a founding shareholder and partner and a Board-Certified Specialist in Consumer Bankruptcy, earned his law degree from the University of Southern California and has handled more than 10,000 bankruptcy cases over three decades.
Board certification is earned by a small fraction of attorneys, and it matters most in the decisions that do not show up on a form: which of California’s two exemption systems to elect, whether Chapter 13 or Chapter 7 serves you better, and whether bankruptcy is even the right tool. We also resolve debt outside of court, so our recommendation is not shaped by having only one service to sell. When a garnishment, foreclosure sale, or repossession is days away, the firm acts quickly to get a case filed.
Debt Situations We See Most Often From San Fernando Clients
- Credit Card and Medical Debt: These are unsecured debts that Chapter 7 can discharge when you pass the means test, which compares your household income to the California median for your household size and then considers your actual expenses.
- Wage Garnishment: An ordinary judgment garnishment is capped at the lesser of 20% of weekly disposable earnings or 40% of the amount by which weekly disposable earnings exceed 48 times the minimum hourly wage, and a higher local minimum wage is used where it applies. Filing Chapter 7 or Chapter 13 triggers the automatic stay, which stops most garnishments when the case is filed.
- Creditor Lawsuits and Judgments: Collection firms sue in Los Angeles County Superior Court, and a default judgment can follow quickly if you do not answer. A bankruptcy filing halts the suit, and judgments already entered can often be addressed in the case.
- Mortgage Arrears and Foreclosure: Chapter 13 lets you catch up missed payments over three to five years while keeping the home, and in some cases a wholly unsecured second mortgage can be stripped off.
- Car Loans and Repossession: Chapter 13 can protect a vehicle you are behind on, and Chapter 7 can eliminate the deficiency balance left after a repossession.
- IRS Tax Debt: Some older income tax debt can be discharged if it meets specific timing rules, while other tax debt is better handled through payment arrangements or a Chapter 13 plan.
- Personal Loans and Student Loan Debt: Personal loans and payday loans are generally dischargeable; most student loans are not, so we look at strategies built around that reality.
- Small Business Debt: Owners whose business debts have become personal obligations may need bankruptcy or negotiated solutions that account for both sides.
What to Do Right Now If Collection Has Already Started
Start by sorting your paperwork by urgency. A court summons carries the hardest deadline: if a creditor has sued you and you do not file a written answer, the court can enter judgment against you even if the debt is old. California gives creditors four years to sue on a written contract and two years on an oral one, but that expired deadline is a defense you must raise yourself in a written answer. A payment on a time-barred debt does not revive it, and only a signed written acknowledgment restarts the clock. Bring the summons, any prior letters, and the original account statements to your first consultation.
If a garnishment has hit your paycheck, gather your last few pay stubs and the garnishment notice. Your employer cannot fire you because your wages are garnished for a single judgment. If a levy has reached your bank account, know that a set amount of funds in a deposit account is protected automatically, without filing a claim, and the bank must apply it before turning money over. That protection does not apply to levies for support, wages owed to another person, or debts owed to the state.
For a foreclosure, the dates tell you how much room you have. A sale cannot happen earlier than 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 monetary default can be reinstated until five business days before the sale date. When a sale is postponed by at least 10 business days, the lender must give written notice of the new date within 5 business days. For a repossessed car, the lender must give at least 15 days’ written notice before selling it, extended to 20 days when mailed from or to an address outside California, and you can request a 10-day extension of the redemption period in writing. You can be held liable for a deficiency only if the notice went out within 60 days of repossession and contained the required information.
Call before any of those dates passes. Do not pay a collector on an old debt without advice, do not let a petition preparer choose your exemptions, and do not wait for a sale date to ask whether bankruptcy fits. When you file, your case goes to the San Fernando Valley Division in Woodland Hills if your address falls in its zip codes, and the Central District’s Court Locator confirms the right division for edge cases like Santa Clarita, Palmdale, and Lancaster.
How California’s Exemptions Decide What You Keep
California has opted out of the federal exemption scheme, so you choose between two state systems: the standard California exemptions, and a second set that includes a flexible wildcard. You must pick one for the entire case, and you generally must have lived in California for at least 730 days to use them. The first system carries a homestead exemption that is the greater of a statutory floor or the prior-year countywide median single-family home price, capped at a ceiling, and both figures adjust annually for inflation. For homeowners with real equity, that system is usually the right choice. The second system offers smaller residence and vehicle amounts plus a wildcard that can be applied to any property, which often suits renters.
This election is where board-certified guidance pays for itself. A San Fernando homeowner whose equity sits inside the homestead protection can typically file Chapter 7 and keep the house, provided the mortgage stays current. Someone with more equity than the exemption covers, or who is behind on payments, often belongs in Chapter 13 instead. Tools of the trade, household goods, vehicles, and retirement accounts all have their own treatment, and we work through every available exemption before you file.
Old Judgments, Collectors That Break the Rules, and Other Overlooked Angles
A California money judgment is enforceable for 10 years from entry, and it can be renewed for another 10 by filing a renewal application. Since SB 1200, renewal is limited to a single five-year extension for medical expense judgments with unpaid principal under $200,000 and personal debt judgments with unpaid principal under $50,000. If you have an older judgment hanging over you, its remaining life is part of deciding whether to file or negotiate.
California’s Rosenthal Act also gives you leverage. It covers original creditors as well as third-party collectors, allows recovery of actual damages, and lets a court add $100 to $1,000 where the collector acted willfully and knowingly, plus attorney fees for a prevailing consumer. 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. Harassing calls and false statements are not something you simply have to absorb, and a violation can sometimes be a bargaining chip in a settlement.
San Fernando Bankruptcy Questions, Answered
Which court will my San Fernando bankruptcy case be filed in?
Most San Fernando filers are in the San Fernando Valley Division of the U.S. Bankruptcy Court for the Central District of California, located in Woodland Hills. The division is determined by your street address zip code, and we confirm it before filing.
How fast can bankruptcy stop a wage garnishment?
The automatic stay takes effect the moment the petition is filed, and it stops most garnishments at that point. If a paycheck is about to be hit, tell us the date so we can prioritize your filing.
Will I lose my home if I file Chapter 7?
Most of our clients keep their homes. If your equity falls within California’s homestead exemption and you are current on the mortgage, Chapter 7 generally leaves the house alone. If you have more equity or are behind on payments, Chapter 13 may be the better path.
What is the difference between Chapter 7 and Chapter 13?
Chapter 7 wipes out qualifying unsecured debt and is usually finished in about four months. Chapter 13 reorganizes your debts into one monthly payment over three to five years and suits people with steady income who need to catch up on a mortgage or car loan or who exceed the means test.
Can a collection lawsuit be stopped by filing bankruptcy?
Yes. The automatic stay halts lawsuits, judgments, bank levies, and garnishments once the case is filed. If you have been served, call before your response deadline so we can decide whether to answer, negotiate, or file.
Will my employer find out I filed?
Not automatically. An employer may learn of it if they are a creditor, if a garnishment must stop, or if Chapter 13 payments come out of your paycheck. California and federal law bar an employer from firing you solely because you filed.
My debt is several years old. Can the creditor still sue me?
Possibly, depending on the type of debt and when the clock started. Written contract claims have a four-year limit and oral contracts two years, but you must raise that defense in a written answer. Making a payment cannot revive a debt that is already time-barred.
How long is a judgment against me good for?
A California money judgment can be enforced for 10 years from entry and can be renewed. For medical and smaller personal debt judgments, recent law limits renewal to one time for five years.
Can I keep my car if I am behind on the loan?
Often yes. Chapter 13 can let you catch up on missed car payments over the plan, and in Chapter 7 the vehicle may be protected by an exemption, depending on its value and the loan. If it has already been repossessed, the lender’s notice and timing requirements may affect any deficiency claim.
I rent and own very little. Is bankruptcy still worth it?
It can be. Renters often benefit from the second exemption system and its wildcard, and the automatic stay still stops calls, suits, and garnishments. If your debt is mostly unsecured, Chapter 7 can eliminate it while you keep what you own.
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, which can be shortened if your plan paid enough to unsecured creditors.
Do I have to come into an office to file?
No. We handle cases entirely by phone, email, video, and online chat, and free virtual consultations are available if that is easier.
Serving San Fernando and the Surrounding Bankruptcy Clients of the Valley and Beyond
From San Fernando itself, our bankruptcy work extends to the neighboring Valley communities of Sylmar, Mission Hills, North Hills, Granada Hills, Northridge, Reseda, and North Hollywood, and into Van Nuys, Sherman Oaks, Encino, Woodland Hills, and the Westside areas of Hollywood and Santa Monica. Clients in Santa Clarita, and in the Antelope Valley communities of Lancaster, Palmdale, and Acton, come to us as well. Because San Fernando sits within Los Angeles County, we also represent clients across Long Beach, Lakewood, Torrance, Compton, Inglewood, Gardena, Norwalk, Bellflower, Paramount, Cerritos, Signal Hill, and Huntington Park.
Our reach continues through the Inland Empire and eastern San Gabriel Valley, including Ontario, Rancho Cucamonga, Upland, Fontana, San Bernardino, Riverside, Pomona, Chino, Chino Hills, Montclair, Claremont, Glendora, West Covina, and the Coachella Valley. In Orange County we assist residents of Anaheim, Santa Ana, Garden Grove, Buena Park, Fullerton, Huntington Beach, Westminster, Costa Mesa, Newport Beach, Tustin, La Habra, Placentia, Mission Viejo, Laguna Niguel, and Cypress. Wherever you live, you can handle the entire case remotely.
Talk to a San Fernando Bankruptcy Attorney Today
If a lawsuit, garnishment, foreclosure notice, or repossession letter is sitting on your table, a conversation with a San Fernando bankruptcy attorney at Wadhwani & Shanfeld costs nothing and commits you to nothing. You will speak directly with an attorney who will review your income, property, and debts and tell you plainly whether Chapter 7, Chapter 13, a settlement, or no filing at all gives you the best result.
Call today for a free consultation, or schedule a virtual one at a time that suits you. The sooner we see your deadlines, the more options you keep.
