Granada Hills Lawsuits & Judgments Lawyer
Wadhwani & Shanfeld is a consumer bankruptcy and debt relief law firm that helps people in Granada Hills and across Los Angeles County, Orange County, Riverside County, and San Bernardino County deal with creditor lawsuits, court judgments, bank levies, and wage garnishments. If a collection firm has served you with a complaint, or a judgment has already been entered and your paycheck or bank account is in play, this is the kind of problem we handle every day.
The details of a Granada Hills lawsuits & judgments lawyer‘s work depend heavily on which stage you are at. A summons that arrived last week calls for a written response with a hard deadline, and an expired statute of limitations can be a complete defense, but only if it is raised. A judgment that was entered months ago is a different animal: it can be enforced for ten years, renewed, collected through your wages or bank account, and in some cases attached to real property. The right move at each stage is different, and the wrong one, such as ignoring the summons or making a small payment on an old debt, can make things worse.
Bankruptcy is one tool, not the only one. Sometimes the best answer is to file a response and fight, sometimes it is a negotiated resolution, and sometimes a Chapter 7 or Chapter 13 filing that stops the case in its tracks. We will tell you which one fits.
Where a Debt Lawsuit Stands Before and After Judgment
Debt lawsuits and judgments are two phases of one problem, and people often confuse them. Before judgment, you are a defendant. The creditor or the company that bought your debt has filed a complaint, and you have a limited window to answer in writing. If you do not answer, the court can enter a default judgment, and the creditor never has to prove the debt. After judgment, you are a judgment debtor, and the creditor can use the court’s enforcement tools: wage garnishment, bank levies, and liens.
The limitations period is the first thing worth checking in any pre-judgment case. In California, a suit on a written contract, including most credit card agreements and book account claims, must generally be filed within four years. An oral contract carries two years. If the creditor waited too long, that is a defense, but it does not apply itself. You must raise it in your written answer, or the court can still enter judgment against you. Two traps matter here. A payment on an old, time-barred debt does not revive it, but a signed written acknowledgment of the debt can restart the clock, so be careful about what you sign when a collector calls.
After judgment, a California money judgment is enforceable for 10 years from entry, and the creditor can file to renew it for another 10. Recent changes limit renewal for certain judgments: for medical expense judgments with unpaid principal under $200,000 and personal debt judgments with unpaid principal under $50,000, renewal is allowed only once, and only for five years. That matters if you are weighing a long-term plan against an old judgment.
Common Lawsuit and Judgment Situations We See
- Credit Card Lawsuits: Banks and debt buyers file in Los Angeles County Superior Court when an account has been delinquent for months. Many Granada Hills filers are served by firms that represent creditors in Southern California and have a response deadline running from the date of service.
- Default Judgments: Missed or ignored summonses lead to judgments entered without any hearing on the merits. Depending on how service was handled, there may be grounds to challenge the judgment, and bankruptcy can also deal with it.
- Wage Garnishment: On an ordinary judgment, the garnishment is capped at the lesser of 20 percent of weekly disposable earnings or the amount by which those earnings exceed 48 times the minimum hourly wage. Biweekly, semimonthly, and monthly paydays use 96, 104, and 208 times the wage. If the local minimum wage is higher than the state’s, the local rate is used. You can also claim an exemption for the portion of earnings shown to be necessary to support you and your family.
- Bank Account Levies: A creditor with a judgment can freeze and levy a deposit account. California automatically shields a set amount in your account per judgment debtor, and the bank must apply that protection without you filing a claim. It does not apply to levies for wages owed to others, child or spousal support, or debts owed to the state.
- Medical Debt Judgments: Hospital and provider bills are often sued on after a long collections period. Renewal limits on these judgments can affect how long they follow you.
- Judgment Liens on Real Property: A recorded judgment can attach to a home. California’s homestead exemption protects a portion of equity, and how much depends on the county’s median home price within a statutory floor and ceiling that adjust yearly.
- Repossession Deficiencies: When a repossessed car sells for less than the loan balance, the lender may sue for the difference. A deficiency is allowed only if the required post-repossession notice was sent in time and contained the required content, so the paperwork is worth examining.
- Collector Misconduct: California’s Rosenthal Act covers original creditors as well as third-party collectors, and a consumer can recover actual damages, additional statutory damages in a range of $100 to $1,000 for willful and knowing violations, and attorney fees. The suit must be filed within one year.
What to Do the Day a Summons or Garnishment Notice Arrives
Start with the paper itself. Note the date you were served, the court named on the summons, and the deadline to respond. A lawsuit against a Granada Hills resident is typically heard in Los Angeles County Superior Court, which is divided into twelve geographic districts, and the summons will tell you where the case sits. Do not set the papers aside, and do not assume a phone call to the collector satisfies the court. Only a written response filed with the court does that.
Gather the documents: the complaint, any prior collection letters, account statements, and anything showing when you last made a payment. The last-payment date matters for the limitations analysis. If a collector asks you to sign something or make a “good faith” payment, hold off until you have talked to an attorney, since a signed acknowledgment can restart a time-barred debt.
If a judgment has already been entered, find out what enforcement has begun. A wage garnishment arrives through your employer, and Labor Code protection bars an employer from firing you because of garnishment on a single judgment. A bank levy shows up as a frozen account. If money is being taken that you need for rent, food, and your family, there are exemption claims to file, and the clock on those is short.
Filing a Chapter 7 or Chapter 13 case triggers the automatic stay, which stops most lawsuits, garnishments, and levies the moment the petition is filed. For Granada Hills residents, bankruptcy cases are filed in the San Fernando Valley Division of the U.S. Bankruptcy Court for the Central District of California, which serves Granada Hills and neighboring communities like Northridge, Mission Hills, Sylmar, and Chatsworth. The filing division follows your street address, not a P.O. box. One more rule to know: to use California’s exemptions in bankruptcy, you generally must have lived in the state at least 730 days.
Why Choose Wadhwani & Shanfeld for Lawsuit and Judgment Defense
Raj Wadhwani, a founding shareholder and partner, is a Southwestern Law School graduate who 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, also a founding shareholder and partner, earned his law degree from the University of Southern California and has handled more than 10,000 bankruptcy cases over three decades. Together the firm has more than 90 years of combined legal experience.
For a lawsuit or judgment case, that background matters in practical ways. The firm files in every division of the U.S. Bankruptcy Court for the Central District of California, so when a bankruptcy filing is the right answer, it is a familiar court. You get direct access to an attorney from your very first call, and when a garnishment, foreclosure sale, or repossession is days away, the firm acts fast. Because the same lawyers handle bankruptcy, debt settlement, and creditor lawsuits, the recommendation comes from what works for your situation, not from the only service on offer. Cases can be handled entirely by phone, email, video, and online chat, with free consultations and 100% virtual consultations available.
Questions About Debt Lawsuits and Judgments in Granada Hills
How long do I have to respond to a debt collection lawsuit?
The summons states your deadline, and it runs from the date you were served. Missing it allows the creditor to ask for a default judgment. Call as soon as you are served, because the response must be a written filing with the court.
Can a creditor still sue me on an old debt?
Sometimes. A suit on a written contract or book account generally must be filed within four years, and an oral contract within two. If the period has run, that is a defense you must raise in your written answer, or the court may enter judgment anyway.
Does a small payment restart the clock on an old debt?
A payment cannot revive a debt that is already time-barred. A signed written acknowledgment of the debt can, which is why you should be cautious about signing anything a collector sends you.
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 the amount by which those earnings exceed 48 times the applicable minimum hourly wage. Different pay periods use different multiples. You can also ask the court to exempt earnings you can show are necessary to support yourself and your family.
Can my employer fire me because of a garnishment?
Not for garnishment on a single judgment. California law bars an employer from terminating an employee on that basis.
Will bankruptcy stop a garnishment or lawsuit?
Filing a Chapter 7 or Chapter 13 case stops most garnishments, levies, and pending lawsuits at the moment of filing through the automatic stay. In an emergency, we can often prepare and file quickly.
Is the money in my bank account protected from a levy?
California automatically protects a set amount per judgment debtor, and the bank must apply it before turning money over, with no claim required. The protection does not cover levies for wages owed to others, child or spousal support, or debts owed to the state.
How long can a creditor keep a judgment against me?
A California money judgment is enforceable for 10 years from entry, and it can be renewed for another 10. For certain medical and personal debt judgments, renewal is limited to one time for five years. Once enforceability ends, enforcement stops and liens created through enforcement are extinguished.
Can I sue a collector who harassed me?
Possibly. The Rosenthal Act allows actual damages, additional damages of $100 to $1,000 for willful and knowing violations, and attorney fees. The suit must be brought within one year, and a collector can avoid liability by correcting a curable violation within 15 days of learning of it.
Could a judgment against me lead to losing my house?
A recorded judgment can create a lien on real property, but California’s homestead exemption protects a portion of equity. In bankruptcy, you choose between two state exemption systems for the whole case, and the choice can make a large difference for homeowners versus renters.
Is it worth hiring a lawyer for a smaller debt lawsuit?
Often yes. A default judgment on even a modest balance opens the door to wage garnishment and bank levies, and a defense like an expired limitations period is lost if it is not raised in time. A free consultation will tell you whether the case calls for a response, a negotiation, or bankruptcy.
Serving Granada Hills and the Surrounding Communities
We represent clients in Granada Hills and across the San Fernando Valley, including Northridge, Mission Hills, North Hills, Sylmar, San Fernando, Reseda, Encino, Woodland Hills, Van Nuys, Sherman Oaks, and North Hollywood. Our reach extends through the Westside to Hollywood and Santa Monica, and north to Santa Clarita and the Antelope Valley communities of Lancaster, Palmdale, and Acton.
Beyond Los Angeles County, we help clients in Orange County, including Anaheim, Santa Ana, Garden Grove, Fullerton, and Huntington Beach, as well as in Riverside and San Bernardino Counties, from Ontario, Rancho Cucamonga, and Upland to Fontana, Pomona, and the Coachella Valley. Whether the lawsuit was filed in a Valley courthouse or elsewhere in Southern California, the work of responding to the complaint, challenging a judgment, or using bankruptcy to stop enforcement is the same.
Talk to a Granada Hills Lawsuits and Judgments Attorney Today
A summons, a garnishment notice, or a frozen bank account all come with deadlines, and the choices you make in the first days shape what is left of your options. A Granada Hills lawsuits and judgments attorney at Wadhwani & Shanfeld can review what was filed against you, tell you honestly whether to fight, negotiate, or file bankruptcy, and move quickly when a levy or sale date is close. Call for a free consultation and speak directly with an attorney, in person or entirely by phone and video.
