Mission Hills Chapter 7 Bankruptcy Lawyer
A garnishment notice from your employer, a bank account frozen after a levy, a summons from a collection firm: for many people in Mission Hills and the surrounding San Fernando Valley, one of these is what finally turns a stack of unpaid bills into a decision. 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 clients across Los Angeles County, Orange County, Riverside County, and San Bernardino County.
If you are looking for a Mission Hills Chapter 7 bankruptcy lawyer, the question underneath the search is usually practical: will this wipe out what I owe, and what happens to my house, my car, and my paycheck while it does? Chapter 7 is the chapter built for people whose income cannot realistically catch up with their unsecured debt. It discharges credit cards, medical bills, personal loans, payday loans, and deficiency balances left after a repossession, and most cases wrap up in roughly four months. It is also the chapter people misunderstand most, because the word “liquidation” scares them into thinking they will lose everything. In California, the opposite is usually true.
Mission Hills sits in the northeast San Fernando Valley, and bankruptcy filings from this community are heard by the San Fernando Valley Division of the U.S. Bankruptcy Court for the Central District of California, which sits in Woodland Hills. That matters because the division, and the trustees assigned to it, shape how your case is reviewed. Your street address, not a P.O. box, determines where you file, and a lawyer who files in every division of the Central District knows how to confirm that before a petition goes in.
Why Choose Wadhwani & Shanfeld for Chapter 7 Cases in Mission Hills
Wadhwani & Shanfeld has helped more than 30,000 individuals and families get out from under debt, and the firm is led by two Board-Certified Specialists in Consumer Bankruptcy through the American Board of Certification, a designation held by only a small fraction of attorneys nationally. Between them, the firm’s lawyers carry more than 90 years of combined legal experience. The firm serves Mission Hills and the wider San Fernando Valley, along with the Westside, the Inland Empire, the Antelope Valley, and Orange County, and it handles cases fully by phone, email, video, and online chat, with 100% virtual consultations available.
Raj Wadhwani, a 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, the same court that will hear your Mission Hills 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.
For a Chapter 7 filer, that depth shows up in places a client rarely sees but always feels: choosing between California’s two exemption systems, catching an asset that needs protecting before the trustee does, and spotting the debts that will not discharge before you are surprised by them. You speak with an attorney from your first call, the consultation is free, and when a garnishment, foreclosure sale, or repossession is days away, the firm moves quickly to get a petition on file. The recommendation you get is built around your income, property, and goals, and if Chapter 13 or a settlement outside of court fits better, you will be told so.
Debt Situations That Often Lead Mission Hills Residents to Chapter 7
- Credit Card Debt: Balances run up during a job loss, a reduction in hours, or rising household costs are the most common reason people file. Chapter 7 discharges them in full, and it also ends the calls and letters from collectors.
- Medical Bills: A hospital stay or ongoing treatment can generate bills that no budget absorbs. These are unsecured debts that Chapter 7 can eliminate, including accounts already sent to collections.
- Creditor Lawsuits and Judgments: Once a collection firm has sued, the clock is already running on your response. Filing stops the case under the automatic stay, and a judgment already entered can be dealt with in the bankruptcy as well.
- Wage Garnishment: A judgment creditor can take a portion of your paycheck through the employer. Filing a Chapter 7 petition halts most garnishments the moment the case is filed.
- Repossession Deficiencies: When a car is repossessed and sold for less than the loan balance, the lender can pursue the difference. That deficiency is an unsecured debt Chapter 7 can discharge.
- Personal and Payday Loans: High-interest loans taken to cover a short-term gap tend to snowball. They are generally dischargeable, which lets you stop paying fees that never reduced the principal.
- Older Income Tax Debt: Some income taxes can be eliminated if they meet specific timing rules, which makes a careful review of your tax history part of the evaluation.
- Debts That Survive Discharge: Child support, alimony, most student loans, most government fines, and debts for injuries caused by drunk driving generally cannot be discharged, so we identify these early and plan around them.
What to Do in the First Days When Creditors Are Closing In
The first thing worth doing is sorting what is urgent from what only feels urgent. A summons has a response deadline, and an expired statute of limitations is a defense you must raise in a written answer, because a court can still enter judgment against you if you stay silent. In California, a written contract debt carries a four-year limitations period and an oral contract debt carries two. A payment on a time-barred debt does not revive it, and only a signed written acknowledgment can restart the clock. If you have been sued, gather the summons and complaint before you do anything else and bring them to a consultation, because whether to answer, negotiate, or file bankruptcy depends on the dates in those papers.
If a levy has hit your bank account, know that California automatically shields a set amount in a deposit account from a judgment creditor’s levy without your filing a claim, and the bank must apply that protection itself. It does not apply to levies for wages owed to another person, child or spousal support, or debts owed to the state. If your paycheck is being garnished, the ordinary cap is the lesser of 20% of weekly disposable earnings or 40% of the amount by which those earnings exceed 48 times the minimum hourly wage, with different multipliers for biweekly, semimonthly, and monthly pay. You can also claim as exempt the portion of earnings proven necessary to support yourself or your family. Your employer cannot fire you because wages are garnished for a single judgment.
Foreclosure and repossession run on their own calendars. In a California foreclosure, the sale date cannot come sooner 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 you can reinstate a monetary default until five business days before the sale. On a repossessed vehicle, the lender must send at least 15 days’ written notice before disposing of it, and a deficiency claim depends on that notice being given within 60 days of repossession and containing the required items. If any of those dates are close, call before they pass. A Chapter 7 petition triggers the automatic stay the moment it is filed, and the firm can often prepare and file quickly when a sale or levy is imminent.
Practically, gather your last two years of tax returns, recent pay stubs, a list of everything you owe, statements for your accounts, and the deed, title, or loan papers for any property. Do not move assets, pay back a relative ahead of other creditors, or run up new charges before talking to an attorney; each of those can create problems in the case. Bankruptcy petition preparers and notaries can type forms, but they cannot give advice, choose exemptions, or defend you if a trustee objects, and a filing error can cost you property or your discharge.
How California Exemptions Decide What You Keep in Chapter 7
The fear that Chapter 7 means losing your home and car usually dissolves once exemptions are explained. California has opted out of the federal exemption scheme, so filers must choose one of two state systems for the entire case: the standard system under Code of Civil Procedure section 704, or the alternative system under section 703.140(b). The choice is not cosmetic. The section 704 system carries a homestead exemption that is tied to the county median home price, subject to a statutory floor and ceiling that are adjusted annually for inflation. The 703.140(b) system offers smaller, set amounts for a residence and a vehicle, but adds a flexible wildcard that can be applied to any property, which is why it often works better for renters or people with little home equity. Those dollar figures are indexed and updated on a schedule, so your attorney should confirm the current numbers at the time of filing rather than relying on an old chart.
To use California’s exemptions at all, you generally must have lived in the state for at least 730 days. If you have been here less than that, a different state’s exemptions may apply, which is a question to raise at the very start. Between the two systems, the right answer depends on whether you own a home, how much equity it holds, what you drive, whether you have tools of your trade, and what is in your retirement accounts. Retirement accounts, household goods, and tools of the trade are commonly protected, and the attorneys work through every available exemption before a petition is filed so that surprises with the trustee are rare.
Chapter 7 also has a gate to pass through. The means test compares your household income to the California median for a household of your size and then accounts for your actual expenses. If your income sits above that line and the expense adjustments do not bring you under it, Chapter 13 is often the better route. It is built for people with steady income who are behind on a mortgage or car loan and want to keep the property, who owe priority tax debt or support arrears, or who have equity beyond what exemptions cover, and it can stop a scheduled foreclosure sale while you catch up over three to five years.
Mission Hills Chapter 7 Questions, Answered
How long does a Chapter 7 case take?
Most Chapter 7 cases are finished in roughly four months from filing. You attend a creditors’ meeting with the trustee, the trustee reviews your paperwork, and if there are no complications, the discharge follows. Cases involving disputed assets, objections, or missing documents can run longer.
Will I lose my house or car if I file Chapter 7?
Most of the firm’s clients keep what they own. In Chapter 7 the question is whether your equity is covered by California’s exemptions. If it is and you stay current on the mortgage or car note, you keep the property. If you are behind on payments or have more equity than the exemption covers, Chapter 13 may be the better tool.
Does filing stop a lawsuit or garnishment right away?
Yes. The automatic stay takes effect the moment the petition is filed, halting lawsuits, judgments, bank levies, wage garnishments, repossessions, and foreclosure proceedings. Creditors that keep going after notice can face consequences from the court.
Which debts cannot be wiped out in Chapter 7?
Child support, alimony, most student loans, most government fines, and debts for injuries caused by drunk driving generally survive. Some older income taxes can be discharged if they meet timing rules, and a review of your tax history tells you whether yours qualify.
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, 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. An employer may learn of it if it is a creditor or if a garnishment has to stop. Under California and federal law, an employer cannot fire you solely because you filed for bankruptcy.
Do I have to come into an office to file?
No. The firm handles cases entirely by phone, email, video, and online chat for clients anywhere in Southern California, and consultations can be 100% virtual. In-person meetings are available if you prefer them.
The collector who sued me says the debt is old. Does that end the case?
Not on its own. A time-barred debt is a defense you have to raise in a written answer; if you ignore the summons, a court can still enter judgment. Paying a small amount on a time-barred debt will not revive it, but signing a written acknowledgment can, so be careful what you sign.
What if a judgment against me is already years old?
A California money judgment is enforceable for 10 years from entry, and it can be renewed. A 2023 law limits renewal to one time, for five years, on certain medical and personal debt judgments under set dollar amounts. An old judgment can still be enforced, so it is worth having an attorney check its age and renewal history before deciding how to deal with it.
Could a collector have broken the law when contacting me?
Possibly. California’s Rosenthal Act covers original creditors as well as third-party collectors, and a consumer can recover actual damages plus an additional $100 to $1,000 if the violation was willful and knowing, along with attorney fees. The suit must be brought within one year, so raise any harassment concerns early.
How long will Chapter 7 hurt my credit?
A Chapter 7 can stay on your credit report for up to 10 years from filing, but its effect on your score fades well before then. Many filers already have damaged scores from missed payments and collections, and with a secured card, on-time payments, and low balances, recovery often begins within the first year.
Serving Mission Hills and the Communities Around It
From Mission Hills, we represent Chapter 7 clients throughout the San Fernando Valley, including neighboring North Hills, Sylmar, San Fernando, Granada Hills, and Northridge, and across the Valley through Reseda, Encino, Woodland Hills, Van Nuys, and North Hollywood. We also serve people on the Westside and in Hollywood and Santa Monica, and in Santa Clarita and the Antelope Valley communities of Lancaster, Palmdale, and Acton.
Our reach extends across Los Angeles County through 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 we serve 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 represent 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 to a Mission Hills Chapter 7 Bankruptcy Attorney Today
You do not need to have everything sorted before you reach out. Call Wadhwani & Shanfeld for a free consultation with a Mission Hills Chapter 7 bankruptcy attorney who will review your income, property, and debts and tell you plainly whether Chapter 7, Chapter 13, or a settlement outside of court gives you the best chance at a fresh start. If a garnishment, sale date, or court deadline is close, say so on the first call, and we will move accordingly.
