Granada Hills Chapter 7 Bankruptcy Lawyer
The goal in a Chapter 7 case is simple to state: the qualifying debt is gone, the collection calls stop, and you walk away with the property that matters to you. Wadhwani & Shanfeld is a consumer bankruptcy and debt relief law firm that handles Chapter 7 cases for individuals and families across Los Angeles County, Orange County, Riverside County, and San Bernardino County, and that includes residents of the northwest San Fernando Valley. If you are looking for a Granada Hills Chapter 7 bankruptcy lawyer, you are probably dealing with credit card balances, medical bills, personal loans, or a collection lawsuit that has outgrown what your paycheck can handle.
Chapter 7 is the form of bankruptcy that wipes out qualifying unsecured debt, usually in about four months from filing. Whether you can use it depends on a means test that compares your household income to the California median for a family your size and then looks at your real expenses. Whether you keep your car, your home equity, and your retirement savings depends on which of California’s two exemption systems you choose. Both questions are decided before anything is filed, which is why the first conversation matters.
For Granada Hills filers there is one local detail worth knowing early: cases from this community are filed in the San Fernando Valley Division of the U.S. Bankruptcy Court for the Central District of California, which sits in Woodland Hills. Your trustee, your paperwork, and your meeting of creditors all run through that division.
Why Choose Wadhwani & Shanfeld for Chapter 7 Filings in Granada Hills
The firm is led by two Board-Certified Specialists in Consumer Bankruptcy, certified through the American Board of Certification, and the team carries more than 90 years of combined legal experience. The firm serves Granada Hills and the surrounding San Fernando Valley, along with communities throughout Los Angeles, Orange, Riverside, and San Bernardino Counties. Clients get direct access to an attorney from the very first call, a free consultation, and the option to handle the entire case by phone, email, video, or 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 federal district that handles your Chapter 7 case. Greg Shanfeld, also a founding shareholder and partner and a Board-Certified Specialist in Consumer Bankruptcy, earned his law degree at the University of Southern California and has handled more than 10,000 bankruptcy cases over three decades.
That depth matters in a Chapter 7 because the mistakes that cost people property or a discharge are rarely dramatic. They are an exemption chosen without running the numbers, an asset left off a schedule, or a means test calculated wrong. The firm files in every division of the Central District, and when a garnishment, foreclosure sale, or repossession is days away, it acts fast.
Debt Situations That Lead Granada Hills Residents to Chapter 7
- Credit Card Balances: Revolving debt is the classic Chapter 7 target. These balances are unsecured, so they are generally dischargeable, and the automatic stay stops collector calls the moment the petition is filed.
- Medical Bills: Surgery, an emergency room visit, or a long illness can leave tens of thousands in balances with no collateral behind them. Chapter 7 treats them like other unsecured debt and can eliminate them.
- Personal and Payday Loans: Unsecured loans, including payday loans, are typically dischargeable. If a lender has already sued, the stay halts the case.
- Collection Lawsuits and Judgments: Suits from firms such as Hunt & Henriques, Reese Law Group, or Patenaude & Felix can end in a judgment that leads to wage garnishment or a bank levy. A Chapter 7 filing stops those actions and can discharge the underlying debt.
- Repossession Deficiencies: When a lender repossesses and sells a car for less than the loan balance, the leftover amount can be wiped out in Chapter 7.
- Older Income Tax Debt: Some older income taxes can be discharged if they meet specific timing rules. Recent tax debt, and certain other taxes, generally cannot.
- Job Loss, Illness, Divorce, or a Failed Business: These are the usual triggers. Income drops, expenses do not, and the credit cards become the bridge until they cannot hold any longer.
Choosing Between California’s Two Exemption Systems
The phrase “liquidation” scares people, but most Chapter 7 filers keep everything they own. California has opted out of the federal exemption scheme, so you pick one of two state systems for your entire case. You cannot mix and match. The first is the standard system under Code of Civil Procedure section 704, which carries a large homestead exemption for homeowners. The second, under section 703.140(b), uses smaller fixed amounts for a residence, a vehicle, and tools of the trade, plus a wildcard that can cover almost any asset. The wildcard often serves renters better.
The homestead protection is no longer the old tiered formula. It is tied to the prior year’s countywide median single-family home price, with a statutory floor and a ceiling that are adjusted for inflation each year. A Granada Hills homeowner with significant equity could find that the choice between systems is the difference between keeping the house and losing it to the trustee, so the equity calculation is done carefully before filing. To use California’s exemptions at all, you generally must have lived in the state for at least 730 days.
If your equity exceeds what either system protects, or you are behind on the mortgage and want to keep the home, Chapter 13 may fit better than Chapter 7. Part of the consultation is deciding which chapter actually serves you.
What to Do Right Now if Creditors Are Closing In
Start by gathering what a bankruptcy attorney will need: recent pay stubs, a few months of bank statements, your last tax return, a list of every creditor, and any lawsuit papers or letters you have received. Do not throw away anything from a collector. Court papers carry deadlines.
If you have been served with a lawsuit, the response deadline is real, and a judgment can be entered if you miss it. A signed complaint also does not mean the debt is valid; if the debt is older than the limitations period for a written contract, which is four years, that is a defense you must raise in a written answer or the court can still rule against you. A bankruptcy filing, however, stops the suit entirely once the petition is on file, so call before the deadline passes rather than after.
If your wages are being garnished, a filing stops the garnishment. On an ordinary judgment, 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. That still takes a real bite out of a paycheck. If your bank account was levied, California automatically protects a set amount per judgment debtor in a deposit account without any claim being filed, but the rest of the balance is at risk until the stay takes effect.
One mistake to avoid: do not make a payment on an old, time-barred debt thinking it shows good faith. Under California law a payment does not revive a debt that has already expired, but it can muddy the waters in a dispute. Also avoid paying back a family member or favoring one creditor just before filing, since the trustee can reverse those transfers.
Once you file, your case is assigned to the San Fernando Valley Division in Woodland Hills. You will attend a meeting of creditors, usually a short proceeding where a trustee asks about your paperwork, and the firm handles that process with you whether you are in person or remote. Most cases wrap up in about four months. Because Wadhwani & Shanfeld works by phone, email, video, and online chat, nobody has to take a day off and drive anywhere just to get started.
Who Qualifies, What Survives, and How Long the Record Lasts
The means test is the gatekeeper. If your household income is at or below the California median for your household size, you generally pass. If it is above, you can still qualify after the test accounts for your actual allowable expenses. An attorney runs these numbers before you commit to anything, so you are not guessing.
Some debts survive Chapter 7: child support, alimony, most student loans, most government fines, and debts from injuries caused by drunk driving. The firm also handles student loan strategies outside of bankruptcy for that reason.
Repeat filers face waiting periods. You must wait eight years between Chapter 7 filings, four years to file Chapter 13 after a Chapter 7, and generally six years to file Chapter 7 after a Chapter 13, though that last period can be shortened if your plan paid enough to unsecured creditors. A Chapter 7 can stay on your credit report for up to ten years from filing, but its impact fades well before that, and many clients see scores begin recovering within the first year with a secured card and on-time payments.
Chapter 7 Questions From Granada Hills Filers
How fast does a Chapter 7 filing stop collection activity?
The automatic stay takes effect the moment the petition is filed. Lawsuits, garnishments, bank levies, repossessions, and foreclosure proceedings must stop. In an emergency, the firm can often prepare and file quickly to stop a sale or levy.
Will I lose my home or car in Chapter 7?
Most clients keep both. Your home is safe if your equity falls within the California homestead exemption and you stay current on the mortgage. Vehicles are protected up to the exemption amount under whichever system you choose. If you have more equity than the exemption covers, Chapter 13 may be the better route.
Which court will handle my case if I live in Granada Hills?
Granada Hills is on the list of communities served by 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 zip code, not a P.O. box, determines the division.
Can I file Chapter 7 if I make too much money?
Possibly. Exceeding the median does not automatically disqualify you, because the means test then looks at your actual allowed expenses. If you still do not qualify, Chapter 13 reorganizes your debts into one payment over three to five years.
Will my employer find out I filed?
Not automatically. They might learn if they are a creditor or if a garnishment has to stop. California law, including Labor Code section 2929 for garnishment situations, and federal law protect you from being fired solely for filing or because wages were garnished for a single judgment.
Does Chapter 7 stop a foreclosure?
It pauses one immediately, but Chapter 7 does not let you catch up on missed mortgage payments. California foreclosures follow a timeline: the sale can be no earlier than three months and 20 days after the notice of default, and you can reinstate a monetary default until five business days before the sale. Chapter 13 is usually the tool for keeping the house when you are behind.
What if a car was already repossessed?
The lender must give at least 15 days’ written notice before disposing of the vehicle, and a deficiency claim is only valid if the notice came within 60 days of repossession and contained required information. Any deficiency balance that remains is typically dischargeable in Chapter 7.
What if a collector keeps calling after I file?
That violates the automatic stay. California’s Rosenthal Act also separately covers original creditors as well as third-party collectors, and a consumer can recover actual damages, additional damages of $100 to $1,000 for willful violations, and attorney fees. The suit deadline under that Act is one year, so report harassment promptly.
Is it worth hiring a lawyer instead of using a paralegal or document preparer?
A petition preparer can type your information into forms but cannot give legal advice, choose your exemptions, or represent you if a trustee or creditor raises a problem. Errors can cost you property or your discharge, which is why representation by a board-certified bankruptcy attorney is worth it.
Can I stop an old judgment from following me?
A California money judgment is enforceable for 10 years from entry and can be renewed, though recent changes limit renewal to a single five-year extension for certain medical and smaller personal debt judgments. Bankruptcy can discharge the debt behind many judgments and stop enforcement now, which is often better than waiting for expiration.
Do I have to come into an office to file?
No. The firm handles cases fully by phone, email, video, and online chat, and offers 100% virtual consultations, so the whole process can happen from your home.
Serving Chapter 7 Clients Across Granada Hills and Southern California
The firm’s work for Granada Hills filers extends across the San Fernando Valley, including Northridge, North Hills, Mission Hills, Sylmar, San Fernando, Reseda, Encino, Woodland Hills, Van Nuys, Sherman Oaks, and North Hollywood. It also reaches the Westside and Hollywood, along with Santa Monica, and Santa Clarita to the north. Clients in the wider Los Angeles County area include those in Los Angeles, Long Beach, Lakewood, Torrance, Compton, Inglewood, Norwalk, Bellflower, Paramount, Gardena, Cerritos, Signal Hill, and Huntington Park, as well as the Antelope Valley communities of Lancaster, Palmdale, and Acton.
Across the county line, the firm serves Orange County residents 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. In the Inland Empire and eastern San Gabriel Valley, it represents clients in Ontario, Rancho Cucamonga, Upland, Fontana, San Bernardino, Pomona, Chino, Chino Hills, Montclair, Claremont, Glendora, West Covina, and Riverside, as well as the Coachella Valley.
Talk With a Granada Hills Chapter 7 Bankruptcy Attorney Today
You do not have to wait for a garnishment notice or a sale date to get answers. A conversation with a Granada Hills Chapter 7 bankruptcy attorney at Wadhwani & Shanfeld costs nothing, and you will speak directly with an attorney who can tell you whether Chapter 7 fits, whether another path works better, and what you would keep.
Call the firm for a free consultation, or schedule a virtual one at a time that suits you. If a court date or sale date is close, say so right away, because that changes how fast the case needs to move.
