Encino Bankruptcy Lawyer
Encino residents weighing whether to file for bankruptcy are usually making the decision under pressure: a garnishment notice from an employer, a summons from a collection firm, a notice of default on a mortgage. 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 in Encino, the rest of the San Fernando Valley, and throughout Los Angeles County and Southern California.
If you are searching for an Encino bankruptcy lawyer, the first thing to know is that the right answer is not always bankruptcy. A debt that is already past the four-year window for a written contract, a judgment that is about to expire, or a wage garnishment that can be reduced by a claim of exemption may point somewhere else. And in an area where many homeowners carry substantial equity, the question of which California exemption system to use can matter more than the debt itself.
Why Choose Wadhwani & Shanfeld for Encino Bankruptcy Cases
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. Raj Wadhwani and Greg Shanfeld are the firm’s founding shareholders and partners, and between the firm’s attorneys there are more than 90 years of combined legal experience. The firm serves clients across Los Angeles, Orange, Riverside, and San Bernardino Counties, with Encino and the surrounding San Fernando Valley communities among them.
Board certification matters in this field because exemption planning is where bankruptcy cases are won or lost. 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. Greg Shanfeld, a graduate of the University of Southern California law school, has handled more than 10,000 bankruptcy cases over three decades. That is the depth of experience behind decisions like whether your home equity is safe, whether a Chapter 13 plan is a better fit than a Chapter 7, or whether a creditor’s lawsuit should be answered rather than ignored.
Clients get direct access to an attorney from the first call, a free consultation, and fast action when a garnishment, foreclosure sale, or repossession is days away. The firm can handle a case entirely by phone, email, video, and online chat, and 100% virtual consultations are available, which suits Encino professionals and business owners who cannot easily step away from work. The firm files in every division of the U.S. Bankruptcy Court for the Central District of California, so your case is built around the court that will actually hear it.
Debt Situations That Bring Encino Residents to a Bankruptcy Attorney
- Credit Card and Medical Debt: These unsecured balances are the most common reason for a Chapter 7 filing. A Chapter 7 case generally runs about four months, and eligibility turns on the means test, which compares your household income to the California median for your household size and then accounts for actual expenses.
- Mortgage Arrears and Foreclosure: A Chapter 13 plan lets you catch up missed payments over three to five years while the automatic stay halts the sale. California’s timeline is fixed by statute, so the dates on your notices matter a great deal.
- Home Equity Above the Exemption: Encino home values can push equity past the homestead exemption. When that happens, Chapter 13 can protect property that a Chapter 7 trustee might otherwise reach.
- Wage Garnishment: A garnishment on an ordinary judgment is capped by a statutory formula tied to your disposable earnings and the minimum wage. Filing bankruptcy stops most garnishments the moment the case is filed.
- Creditor Lawsuits and Judgments: A summons from a collection firm carries a short response deadline. Missing it can lead to a default judgment, which becomes the tool for garnishing wages and levying bank accounts.
- Vehicle Repossession and Deficiencies: After a repossession, the lender may pursue a deficiency balance. Chapter 7 can discharge that balance, and Chapter 13 can sometimes let you keep the car.
- IRS Tax Debt: Some older income tax debt can be discharged if it meets specific timing rules, while recent or priority taxes may be better handled through a Chapter 13 plan or direct negotiation with the IRS.
- Second Mortgages and Business Debt: A wholly unsecured second mortgage can sometimes be stripped off in Chapter 13, and the firm also handles small business bankruptcy and business debt solutions.
What to Do When the Notices Start Arriving
Start by sorting what you have received, because each document starts a different clock. A summons and complaint from a creditor needs a written response; the expiration of the limitations period is a defense that you must raise in an answer, and a court can still enter judgment against you if you stay silent. In California, the limit for a written contract or book account claim is four years, and for an oral contract it is two years. Be careful with payments on old debts: a payment cannot revive a debt that is already time-barred, but a signed written acknowledgment can restart the clock on one that is not.
If the notice is about your home, look for the notice of default and the notice of sale. A sale date cannot be set until about 90 days after the notice of default is recorded, and the sale cannot happen earlier than three months and 20 days after that recording. The notice of sale must be mailed and posted on the property at least 20 days before the sale. You can reinstate a missed monetary default until five business days before the sale, so the real decision window closes earlier than most people expect. If the sale is postponed at least 10 business days, the lender must send written notice of the new date within 5 business days.
For a repossessed vehicle, the lender must give at least 15 days’ written notice of its plan to sell the car, extended to 20 days when mailed from or to an address outside California. You can ask in writing for a 10-day extension of the redemption period. The lender can pursue a deficiency only if it sends a compliant notice within 60 days of the repossession, and it owes you an accounting within 45 days after the sale if you ask for one.
Gather your last two years of pay records, a list of every creditor with balances, your mortgage and vehicle documents, and any court papers or letters. Then call. Encino residents file in the San Fernando Valley Division of the U.S. Bankruptcy Court for the Central District of California, which sits in Woodland Hills. The division is assigned by your street address zip code, not a P.O. box, and our attorneys confirm that at the start. Lawsuits filed against you in state court are typically heard in the Los Angeles County Superior Court district that covers the Valley, and a lawyer can tell you where yours is pending. Do not move money, transfer property to relatives, or pay one creditor ahead of the others before you speak with an attorney, because those moves can create problems in a later bankruptcy.
Exemptions: Whether You Keep Your Home, Car, and Savings
California has opted out of the federal exemption scheme, so you choose between two state systems for the entire case: the system found in CCP section 704 or the alternative under section 703.140(b). The choice is a strategic one. The section 704 system includes a homestead exemption set by a formula based on the county median home price, bounded by a statutory floor and a ceiling that both adjust for inflation, which is why it often favors homeowners with real equity. The 703.140(b) system has a much smaller residence exemption but includes a flexible wildcard that can cover almost any asset, which often suits renters or people with little home equity. Dollar amounts under both systems adjust periodically, so your attorney should confirm the current figures before you file.
There is also a residency requirement. To use California’s exemptions you generally must have lived in the state for at least 730 days before filing. A recent move into or within California can change which exemptions are available, so tell your attorney about it early.
Bank accounts have their own automatic protection. California exempts a set amount in a deposit account from a levy by a judgment creditor, applied by the bank without your filing a claim. It does not apply to levies for wages owed to another person, child or spousal support, or debts owed to the state. For wages, you can also ask the court to exempt the portion of your earnings proven necessary to support you and your family. An employer may not fire you because your wages are garnished for a single judgment.
Old Judgments, Collector Misconduct, and Other Questions That Change the Plan
A money judgment in California is enforceable for 10 years from entry, and a renewal application can extend it for another 10 years. A change that took effect in 2023 limits renewal to one time, for five years only, for medical expense judgments and personal debt judgments below certain principal amounts. If you have an old judgment, its age may affect whether bankruptcy is necessary at all.
California’s Rosenthal Act also gives consumers rights against abusive collection. It covers original creditors as well as third-party collectors, allows recovery of actual damages, and lets a court add $100 to $1,000 when a collector acted willfully and knowingly. A prevailing consumer can recover reasonable attorney fees. The suit must be filed within one year, and a collector can avoid liability by correcting a curable violation within 15 days of discovering it or receiving written notice. If a collector has been calling your workplace or misrepresenting what you owe, raise it with your attorney, because it can change the settlement picture.
Encino Bankruptcy Questions, Answered
How fast can filing stop a garnishment or foreclosure?
The automatic stay takes effect the moment the petition is filed, and creditors must stop collection activity. In an emergency, the firm can often prepare and file a case quickly to stop a sale, levy, or garnishment.
Will I lose my Encino home in Chapter 7?
Most clients keep their homes. 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 covers or you are behind on payments, Chapter 13 lets you keep the home and catch up over time.
What debts can bankruptcy eliminate?
Most unsecured debts can be discharged, including credit cards, medical bills, personal loans, payday loans, and deficiency balances after repossession or foreclosure. Child support, alimony, most student loans, most government fines, and debts for injuries caused by drunk driving generally cannot be discharged.
Do I qualify for Chapter 7 if I earn a good salary?
Qualification depends on the means test, which compares your income to the California median for your household size and then accounts for your actual expenses. If your income is above the line, Chapter 13 is often the alternative, and an attorney can run the numbers before you decide.
How long does bankruptcy stay on my credit report?
A Chapter 7 can remain for up to 10 years from filing, and the credit bureaus typically remove a Chapter 13 after 7 years. The effect on your score fades well before those dates.
How soon can I file again after a prior bankruptcy?
You must wait 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 period can be shortened if your plan paid enough to unsecured creditors.
Is a debt too old for a creditor to sue me over?
In California, a creditor generally has four years to sue on a written contract or book account and two years on an oral contract. The expired deadline is a defense you must raise in a written answer. Making a payment cannot revive a debt that is already time-barred, but a signed written acknowledgment of the debt can restart the period on one that is not.
Can I use bankruptcy to stop a bank levy?
Yes. The automatic stay halts bank levies when the case is filed. Separately, California automatically protects a set amount in a deposit account from a judgment creditor’s levy, but that protection has exceptions, so timing a filing around an active levy is worth discussing with counsel.
Will my employer find out I filed?
Your employer is not automatically notified. They may learn of it if they are a creditor, if a garnishment must stop, or if Chapter 13 plan payments are deducted from your paycheck. California and federal law prohibit firing an employee solely for filing bankruptcy.
Can a paralegal or document preparer file my case instead?
A petition preparer can type your information into forms but cannot give legal advice, choose exemptions, or represent you if a creditor or trustee objects. Errors in a filing can cost you property or your discharge, which is why representation by a bankruptcy attorney matters.
Do I have to come into an office for my case?
No. The firm handles cases entirely by phone, email, video, and online chat, and offers 100% virtual consultations.
Encino Bankruptcy Representation Across the Valley and Southern California
The firm represents clients in Encino and throughout the San Fernando Valley, including Woodland Hills, Reseda, Northridge, Granada Hills, North Hollywood, North Hills, Mission Hills, San Fernando, Sylmar, Van Nuys, and Sherman Oaks. On the Westside and toward the coast, it works with clients in Hollywood, Santa Monica, and Los Angeles proper, and it serves Santa Clarita and the Antelope Valley communities of Lancaster, Palmdale, and Acton.
Across Los Angeles County, the firm also helps people in Long Beach, Lakewood, Torrance, Compton, Inglewood, Gardena, Norwalk, Bellflower, Paramount, Cerritos, Cypress, Signal Hill, and Huntington Park. In the Inland Empire and eastern San Gabriel Valley, it serves Ontario, Rancho Cucamonga, Upland, Fontana, San Bernardino, Pomona, Chino, Chino Hills, Montclair, Claremont, Glendora, West Covina, Riverside, and the Coachella Valley. In Orange County, it represents 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.
Talk With an Encino Bankruptcy Attorney Before the Next Deadline
Whether you have a summons on the kitchen table, a sale date on your mortgage, or a garnishment eating into every paycheck, speaking with an Encino bankruptcy attorney at Wadhwani & Shanfeld costs nothing and commits you to nothing. You will talk directly with an attorney, learn which options fit your income and property, and get an honest answer about whether bankruptcy, settlement, or something else makes the most sense.
Call to schedule your free consultation, in person or by video, and find out where you stand before the next deadline arrives.
