North Hills Lawsuits & Judgments Lawyer
A lawsuit from a creditor does not have to end in a judgment, and a judgment does not have to end in a drained bank account or a smaller paycheck. The deadline to respond is short, the defenses are real, and the tools for stopping enforcement work best when they are used early. Wadhwani & Shanfeld is a consumer bankruptcy and debt relief law firm that handles creditor lawsuits, judgments, wage garnishment, Chapter 7, Chapter 13, and debt settlement for people in North Hills and across Los Angeles County, Orange County, Riverside County, and San Bernardino County.
If you are searching for a North Hills lawsuits & judgments lawyer, you are probably in one of two positions. Either a debt collector or a bank has served you with a summons and complaint and the clock is running, or a court has already entered a judgment and you are watching for a levy on your bank account or a notice sent to your employer. Those two situations call for different responses, and the right one depends on how old the debt is, how much you earn, what you own, and what else you owe.
North Hills sits in the San Fernando Valley, and bankruptcy cases for residents here are filed in the San Fernando Valley Division of the U.S. Bankruptcy Court for the Central District of California. That court sits in Woodland Hills, and North Hills is among the communities it serves. A bankruptcy petition filed there triggers the automatic stay, which halts the lawsuit, the judgment enforcement, and the garnishment in one step.
Why Choose Wadhwani & Shanfeld for Creditor Lawsuit and Judgment Defense
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 firm’s attorneys bring more than 90 years of combined legal experience to cases involving collection suits, judgments, garnishments, and levies. The firm serves clients throughout the San Fernando Valley, including North Hills, Mission Hills, Northridge, Granada Hills, Van Nuys, and Sylmar, and throughout Southern California.
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 court’s filing system matters when a levy or garnishment is days from hitting and a petition has to be prepared and filed quickly. The firm files in every division of the Central District of California bankruptcy court.
For someone who has just been served, the practical differences are access and range. You speak directly with an attorney from your first call, consultations are free, and the entire case can be handled by phone, email, video, and online chat, with 100% virtual consultations available. Because the firm handles both bankruptcy and the alternatives, such as debt settlement and negotiation, the advice you get is about what fits your situation, not about the only service on offer. If a settlement or a well-drafted answer solves the problem, you will hear that.
Common Debt Lawsuits and Judgment Problems We Handle
- Credit Card Collection Suits: Banks and debt buyers file these on written contract or book account theories, and both carry a four-year limitations period. Many cases are filed by assignees who bought the account, which raises questions about whether they can actually prove ownership and the amount owed.
- Medical Bill Judgments: Unpaid hospital and provider balances often move to collection and then to court. Medical expense judgments get special treatment on renewal under California law, and they are dischargeable in Chapter 7 along with most other unsecured debt.
- Personal Loan and Payday Loan Suits: Installment lenders and online lenders sue on defaulted loans, sometimes adding fees and interest that deserve scrutiny before any settlement is considered.
- Repossession Deficiency Claims: After a vehicle is repossessed and sold, the lender may sue for the shortfall. Whether it can collect depends on whether it sent proper notice of its intent to sell, and on timing and content requirements the statute spells out.
- Bank Levies on Checking Accounts: A judgment creditor can have a levying officer freeze funds in your account. Part of your balance is protected automatically, and other funds may be protected if you file a claim of exemption on time.
- Wage Garnishments: An employer is directed to withhold a portion of each paycheck. The amount is capped by formula, and you can ask the court to reduce it if you can show the money is needed to support yourself or your family.
- Judgment Liens on Real Property: A recorded abstract of judgment attaches to real estate you own in the county where it is recorded, which can complicate a sale or refinance until the lien is resolved or removed.
- Old Judgments Up for Renewal: Creditors sometimes renew judgments to extend enforcement, and recent changes limit how many times certain consumer and medical judgments can be renewed.
What to Do When You Have Been Sued or a Judgment Has Been Entered
Start with the paperwork. A summons gives you a limited window to file a written response, and if you miss it the creditor can ask for a default judgment without ever proving its case. Ignoring the papers is the single costliest mistake in these cases, because a default judgment opens the door to garnishment and levies. Gather the summons, the complaint, any prior collection letters, your account statements, and anything showing the last payment you made. Then call an attorney before the response deadline passes, even if you believe the debt is valid. The attorney can tell you whether to answer, negotiate, or file bankruptcy.
Check how old the debt is. California gives a creditor four years to sue on a written contract and on a book account, and two years on an oral contract. Expiration of that period is a defense, but it is one you must raise yourself in a written answer; the court will not raise it for you, and a judgment can still be entered against you if you stay silent. Also be careful about what you say to collectors. A payment on a debt that is already time-barred does not revive it, and a revival requires a signed written acknowledgment, but a casual promise on a call can still create confusion and invite a lawsuit you would otherwise have defended.
Lawsuits against North Hills residents are typically filed in the Los Angeles County Superior Court, which operates through 12 geographic districts and has courthouses around the county, including in San Fernando, Van Nuys, and Chatsworth. Where your case is heard depends on where the contract was made, where the debt was incurred, and where you live. Your summons will say which courthouse has the case, and you should confirm it rather than assume.
If a judgment has already been entered, think about the enforcement tools in turn. On a bank levy, a protected amount of your deposit account is exempt automatically without any paperwork, and the bank is required to apply that protection before it turns money over. Anything above that may be protected if the funds trace to exempt sources, which requires a timely claim of exemption. On a wage garnishment, California caps what can be taken from an ordinary judgment 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, with different multipliers of 96, 104, and 208 for biweekly, semimonthly, and monthly pay. Where the local minimum wage is higher than the state’s, the higher rate is used. You can also ask the court to exempt the portion of your earnings shown to be necessary for your or your family’s support. Your employer cannot fire you because your wages are garnished for a single judgment.
Bankruptcy is the fastest way to stop all of this at once. The automatic stay takes effect the moment a Chapter 7 or Chapter 13 petition is filed, halting the lawsuit, bank levies, and most garnishments. If a sale date, a levy, or a garnishment is days away, tell the attorney at the first call so the filing can be prepared on an expedited basis.
Defenses, Exemptions, and Bankruptcy Options in Judgment Cases
Defending a collection suit starts with making the plaintiff prove its case. A debt buyer must show it owns the account and can document the amount, and a lawsuit filed after the limitations period has run can be defeated if the defense is raised in your answer. California’s Rosenthal Fair Debt Collection Practices Act adds another layer. It covers original creditors as well as third-party collectors, lets a consumer recover actual damages plus an additional $100 to $1,000 if the collector acted willfully and knowingly, and allows recovery of reasonable attorney fees by a prevailing consumer. Claims under the Act must be brought within one year, and a collector can avoid liability by correcting a curable violation within 15 days of learning of it. Rosenthal claims are individual actions, not class actions.
When bankruptcy is the better answer, the central question is what you can keep. California has opted out of the federal exemption scheme, so filers choose between two state systems for the entire case: the standard system under CCP section 704, which offers a substantial homestead exemption tied to county home prices, or the alternative system under section 703.140(b), whose smaller residence and vehicle amounts plus a flexible wildcard often suit renters better. To use California’s exemptions you generally must have lived in the state for at least 730 days. The dollar amounts in both systems are adjusted periodically, so your attorney will apply the current figures to your property when evaluating your case.
Chapter 7 can eliminate most judgments on unsecured debt such as credit cards, medical bills, and personal loans, and most cases are completed in roughly four months. Chapter 13 fits people with steady income who need to catch up on a mortgage or car loan, owe debts Chapter 7 cannot discharge, or have equity beyond what exemptions protect. The plan lasts three to five years and binds creditors once confirmed. Some debts survive either chapter, including child support, alimony, and most student loans.
Judgments also have a limited life. A California money judgment is enforceable for 10 years from entry, after which enforcement stops and liens created through enforcement are extinguished. A creditor can file an application to renew, which extends enforceability for another 10 years from the filing date. Under a law that took effect at the start of 2023, however, renewal is limited to one time, for five years only, for medical expense judgments with unpaid principal under $200,000 and personal debt judgments with unpaid principal under $50,000. If you are looking at an old judgment, the date of entry and any renewal filings change how long you may have to deal with it.
North Hills Lawsuits and Judgments: Your Questions Answered
How long do I have to respond to a debt collection lawsuit?
The summons states your deadline, and it is short. Missing it allows the creditor to ask for a default judgment. Call an attorney as soon as you are served so there is time to prepare a written response or evaluate bankruptcy before the deadline expires.
Can a creditor sue me if the debt is very old?
They can file, but the case may be defeated. California allows four years to sue on a written contract or book account and two years on an oral contract. The expired deadline is a defense that must be raised in your written answer, or the court can still enter judgment against you.
Does making a small payment restart the clock?
A payment cannot revive a debt that is already time-barred. Reviving it requires a signed written acknowledgment. Even so, you should talk to a lawyer before making any payment or promise on an old account.
How much of my paycheck can be garnished?
On an ordinary judgment, the cap is the lesser of 20 percent of weekly disposable earnings or 40 percent of the amount by which weekly disposable earnings exceed 48 times the applicable minimum hourly wage. Different multipliers apply to biweekly, semimonthly, and monthly pay. You can also ask the court to reduce the garnishment if you show the money is needed to support your family.
Can my employer fire me if my wages are garnished?
Not for a garnishment on a single judgment. California law bars an employer from terminating you for that reason.
Will a bank levy take everything in my account?
No. A portion of your deposit account balance is protected automatically, and the bank must apply that protection before sending money to the levying officer. Other funds may be protected if you file a claim of exemption in time. Some levies, such as those for child or spousal support or debts owed to the state, are not subject to the automatic protection.
How long does a judgment last in California?
A money judgment is enforceable for 10 years from entry and can be renewed. Renewal rules were tightened for certain medical and personal debt judgments, which can now be renewed only once and for five years.
Can I file bankruptcy if a judgment has already been entered against me?
Yes. Chapter 7 can discharge most judgments on unsecured debt, and the automatic stay halts garnishments and levies on filing. Chapter 13 is an option if you want to keep property and pay over time.
Will bankruptcy get rid of a judgment lien on my home?
It can, depending on how much equity you have, the exemption system you select, and the type of case. The answer turns on the numbers, so the attorney will compare your equity against the available homestead exemption before recommending a path.
Is it worth hiring a lawyer for a small collection suit?
Often yes. Even a modest suit becomes a judgment that can support garnishment, levies, and liens for 10 years. A written answer raising the right defenses, or a negotiated settlement, can cost far less than living with an enforceable judgment.
Can a collector sue me and also violate the law while collecting?
Yes, and the Rosenthal Act gives you a separate claim if a collector crosses the line. You can recover actual damages, possible statutory damages of $100 to $1,000 for willful and knowing violations, and attorney fees if you prevail, but you must act within one year.
Which bankruptcy court would my case be filed in?
The filing division depends on your street address zip code. North Hills falls within the San Fernando Valley Division of the Central District of California bankruptcy court, which sits in Woodland Hills.
Serving North Hills and the Surrounding Valley Communities
The firm represents clients in North Hills and throughout Los Angeles County, starting with the neighborhoods that surround it in the San Fernando Valley: Mission Hills, Panorama City-adjacent Van Nuys, Northridge, Granada Hills, Reseda, North Hollywood, Sylmar, San Fernando, Encino, Woodland Hills, and Sherman Oaks. Clients from Hollywood, Santa Monica, and the wider Westside also turn to the firm for creditor lawsuit and judgment defense, as do residents of Santa Clarita and the Antelope Valley communities of Lancaster, Palmdale, and Acton.
Beyond Los Angeles County, the firm works with clients across Southern California, including Long Beach, Lakewood, Torrance, Compton, Inglewood, Norwalk, Bellflower, Paramount, Gardena, 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 people 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. Because cases can be handled by phone, email, video, and online chat, you do not need to travel to get help with a lawsuit or judgment.
Talk to a North Hills Lawsuits and Judgments Attorney Today
If you have been served with a summons, received notice of a judgment, or seen a garnishment or levy hit, a North Hills lawsuits and judgments attorney at Wadhwani & Shanfeld can look at your papers, your income, and your property and tell you honestly whether the better path is a defense, a negotiated resolution, or bankruptcy. Call for a free consultation and speak directly with an attorney. If a response deadline, a garnishment, or a sale date is close, say so at the start of the call, and the firm can move quickly to stop collection and give you room to make decisions on your own terms.
