North Hills Credit Card Debt Lawyer
Residents of North Hills who are sitting on a stack of card statements, a summons from a collection firm, or a bank account that has suddenly been frozen face a decision with real deadlines attached: answer a lawsuit, negotiate, or file bankruptcy. Wadhwani & Shanfeld is a consumer bankruptcy and debt relief law firm that handles Chapter 7, Chapter 13, debt settlement, creditor lawsuits, and wage garnishment for individuals and families in North Hills, the San Fernando Valley, and throughout Los Angeles, Orange, Riverside, and San Bernardino Counties.
If you are looking for a North Hills credit card debt lawyer, the first thing to know is that card debt is unsecured, which gives you more room to maneuver than most people expect. No collateral is at stake, and the law gives you real defenses and exits. Card debt can be wiped out entirely in Chapter 7, folded into a three-to-five-year plan in Chapter 13, or settled for less than the balance. Which route fits depends on your income, your property, whether a lawsuit has already been filed, and whether a judgment has been entered.
Timing matters more than most people realize. A credit card issuer or debt buyer can sue, win by default if you ignore the case, and then reach your paycheck and bank account. The sooner someone looks at the paperwork you have received, the more choices you keep.
Why Choose Wadhwani & Shanfeld for Credit Card Debt Relief
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: founding shareholders Raj Wadhwani and Greg Shanfeld. Together the attorneys carry more than 90 years of combined legal experience. The firm serves clients across Los Angeles County, the San Fernando Valley, the Inland Empire, and Orange County, and clients speak directly with an attorney from the first call rather than being screened by a call center. Consultations are free, and the whole case can be handled by phone, email, video, or online chat.
Those credentials matter for card debt because the choice between bankruptcy and settlement is rarely obvious. Greg Shanfeld earned his law degree from the University of Southern California and has handled more than 10,000 bankruptcy cases over three decades. 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. That familiarity with the filing process shows up in practical ways, especially when a garnishment or levy is days away and the petition has to be prepared quickly. The firm files in every division of the U.S. Bankruptcy Court for the Central District of California.
Because the firm handles bankruptcy and its alternatives, the recommendation is not driven by the only tool on the shelf. Sometimes settlement is the better answer, sometimes Chapter 7, sometimes Chapter 13, and the attorneys will tell you honestly which one it is.
Common Credit Card Debt Situations We Handle
- Maxed-Out Cards After Job Loss or Reduced Hours: Many accounts go bad when income drops and minimum payments become impossible. Chapter 7 can discharge the balances if your household income passes the means test, which compares your income to the California median for your household size.
- Medical Bills Carried on Credit Cards: Unexpected treatment costs often end up on plastic. Medical balances and card balances are both unsecured and are treated the same way in bankruptcy.
- Collection Lawsuits From Debt Buyers: Firms such as Hunt & Henriques, Reese Law Group, and Patenaude & Felix file suits on behalf of creditors and debt buyers. A written answer is required, and the filing of a bankruptcy petition halts the case through the automatic stay.
- Wage Garnishment After a Judgment: Once a creditor holds a judgment, it can take a portion of your paycheck. Chapter 7 or Chapter 13 stops most garnishments when the case is filed.
- Frozen or Levied Bank Accounts: A judgment creditor can have your bank account levied. Bankruptcy halts the levy, and California law protects a baseline amount in deposit accounts automatically.
- Income Above the Chapter 7 Limit: Higher earners with heavy card balances often use Chapter 13 to repay what they can afford over three to five years while protecting assets.
- Old Debt That May Be Time-Barred: Accounts that have sat for years may be past the deadline for suit, which changes both the defense strategy and what you should avoid doing.
- Cards Combined With Other Debt: Card balances rarely arrive alone. Personal loans, a second mortgage, or IRS debt can change which chapter makes sense.
What to Do When Card Debt Collections Reach Your Door
Start by gathering every piece of paper: statements, collection letters, any summons and complaint, and anything that arrived after a judgment. Do not throw away envelopes, because dates matter. If you have been served with a lawsuit, the response deadline is short, and ignoring it allows the creditor to win by default. A written answer is how you preserve defenses, including the argument that the time limit to sue has expired. In California, a creditor generally has four years to sue on a written contract, which covers most card agreements, and two years on an oral contract. The expired deadline is not automatic; it is a defense you must raise in your answer, otherwise the court can still enter judgment.
Be careful about what you say and sign. A signed written acknowledgment of the debt can restart the limitations clock, though a payment on a debt that is already time-barred cannot revive it. Collectors sometimes push for a small good-faith payment on an old account, and that is a conversation worth having with an attorney first.
Lawsuits over card debt in the North Hills area are typically heard in the Los Angeles County Superior Court, which operates courthouses throughout the county, including in Van Nuys, San Fernando, and Chatsworth. If bankruptcy is the right answer, North Hills falls within the San Fernando Valley Division of the U.S. Bankruptcy Court for the Central District of California, which sits in Woodland Hills. Filing division is determined by the street address of your residence, so we confirm it before filing.
If a garnishment or levy is already underway, tell us right away. The firm acts fast when a garnishment, foreclosure sale, or repossession is days away, and the automatic stay takes effect the moment the petition is filed. You do not need to come in first. Everything can be done remotely, and you can speak with an attorney on the first call.
How California Law Treats Judgments, Garnishments, and Bank Levies
A creditor who wins a judgment gains collection tools, but California limits them. An ordinary wage garnishment is capped at the lesser of 20 percent of your weekly disposable earnings or 40 percent of the amount by which those earnings exceed 48 times the minimum hourly wage. Biweekly, semimonthly, and monthly paychecks use 96, 104, and 208 times the minimum wage in that formula, and if your local minimum wage is higher than the state’s, the local rate is used. You can also ask the court to exempt the portion of earnings you can show is necessary to support yourself or your family. Your employer cannot fire you because your wages are garnished for a single judgment.
Bank levies work differently. California automatically protects a set amount in a deposit account without any claim of exemption, and the bank is required to apply that protection before turning money over to the levying officer. The protection does not apply to levies for wages owed to someone else, child or spousal support, or debts owed to the state. Because that protected amount is adjusted periodically, we confirm the current figure when we review your situation.
A California money judgment generally remains enforceable for 10 years from entry and can be renewed. For judgments on personal debts under a set principal threshold, recent law limits renewal to a single five-year extension. A judgment, then, is not forever, but it lasts long enough to do real damage, which is why many clients choose to resolve it through bankruptcy rather than wait it out.
Chapter 7, Chapter 13, or Settlement for Card Debt
Chapter 7 is the most common path for card debt. It discharges qualifying unsecured debt, usually in roughly four months, and most filers keep everything they own. California does not use the federal exemptions. Instead, filers choose one of two state systems for the entire case: the one built around a large homestead exemption for homeowners, or the one with a flexible wildcard that often works better for renters. Choosing the right system is one of the most consequential decisions in a case, and the dollar amounts in both are adjusted on a schedule, so they are confirmed at the time of filing. To use California’s exemptions, you must have lived in the state long enough to satisfy the residency rule, which is 730 days.
Chapter 13 fits people with steady income who exceed the Chapter 7 means test or who have equity to protect. Your debts are reorganized into one monthly payment over three to five years, and creditors are bound by the plan once the court confirms it. Debt settlement sits outside of court: we negotiate directly with the creditor to resolve the balance for less than you owe. Settlement can make sense when the debt is manageable in size and you want to avoid a filing, but it offers no automatic stay, so a lawsuit can continue while talks are underway.
Credit Card Debt Questions We Hear From North Hills Clients
Can I stop a credit card lawsuit by filing bankruptcy?
Yes. The automatic stay takes effect the moment the petition is filed and halts lawsuits, judgments, bank levies, and wage garnishments. If a court date or response deadline is close, tell us immediately so we can move quickly.
Can credit card debt be eliminated in bankruptcy?
Yes. Credit card balances are unsecured debt and are generally dischargeable in Chapter 7, subject to the means test. In Chapter 13, they are reorganized into a plan payment. Certain recent charges, such as large luxury purchases or cash advances shortly before filing, can draw scrutiny, so tell your attorney about any of those.
How long does a creditor have to sue me for credit card debt in California?
Generally four years on a written contract and two years on an oral contract. The expired deadline is a defense you must raise in a written answer; the court will not apply it on its own.
Will making a payment on an old debt restart the clock?
Not if the debt is already time-barred; a payment cannot revive it. A signed written acknowledgment of the debt, however, can restart the period, so be cautious about signing anything a collector sends you.
How much of my paycheck can a credit card company garnish?
Under California’s formula, the cap is the lesser of 20 percent of weekly disposable earnings or 40 percent of the amount by which those earnings exceed 48 times the minimum hourly wage. You may also claim an exemption for earnings necessary to support your family.
Is my bank account protected from a levy?
A baseline amount in your deposit account is protected automatically, and the bank must apply it before sending money to the levying officer. Amounts above that can be taken unless another exemption applies, such as protected benefits, and bankruptcy stops the levy altogether.
Can I be fired because my wages are being garnished?
No, not for garnishment on a single judgment. California law bars an employer from firing an employee for that reason. Your employer also is not notified of a bankruptcy automatically, although they may learn of it if wages must stop being garnished or Chapter 13 payments are taken from your paycheck.
What if the collector is breaking the rules?
California’s Rosenthal Act covers original creditors as well as third-party collectors. A consumer can recover actual damages, and a court may add $100 to $1,000 if the violation was willful and knowing, plus attorney fees to 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 about it, so documenting calls and letters matters.
Do I have to come into an office to file?
No. We handle cases fully by phone, email, video, and online chat, and 100% virtual consultations are available. Clients who prefer an in-person meeting are welcome to arrange one.
How long does a judgment last if I do nothing?
A California money judgment is enforceable for 10 years from entry and can be renewed, subject to limits for smaller personal debts. Interest accrues in the meantime, which is why ignoring a judgment rarely makes it go away.
Is it worth hiring a lawyer for a card balance of a few thousand dollars?
Often yes. Even modest balances can become judgments with garnishment and levy rights attached. A short consultation can tell you whether a defense exists, whether settlement is realistic, or whether bankruptcy is the cleaner solution. The consultation is free.
Can I file bankruptcy if I filed 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 the Chapter 13 plan paid enough to unsecured creditors.
Serving North Hills and Surrounding Credit Card Debt Clients
From North Hills, our team represents clients across the San Fernando Valley, including neighbors in Mission Hills, Granada Hills, Northridge, Reseda, North Hollywood, San Fernando, Sylmar, Van Nuys, Sherman Oaks, Encino, and Woodland Hills. We also help families on the Westside and in Hollywood and Santa Monica, and throughout Los Angeles County in places like Santa Clarita, Long Beach, Lakewood, Torrance, Compton, Inglewood, Gardena, Cerritos, Bellflower, Norwalk, Paramount, Signal Hill, and Huntington Park. In the Antelope Valley we work with clients in Lancaster, Palmdale, and Acton.
Our reach extends east into the Inland Empire and the 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 represent clients in 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 in Southern California, your card debt case can be handled by phone, video, or email.
Talk to a North Hills Credit Card Debt Attorney Today
You do not have to wait for a garnishment notice or a court date to get answers. Call Wadhwani & Shanfeld for a free consultation with a North Hills credit card debt attorney, and you will speak directly with a lawyer about whether bankruptcy, a negotiated settlement, or a defense to the lawsuit gives you the strongest path forward. We will review your income, property, and debts, explain every option plainly, and tell you honestly which one fits.
If a response deadline, a levy, or a garnishment is close, call today. The sooner we see your paperwork, the more choices you keep, and the faster we can put the automatic stay between you and your creditors.
