Santa Monica Lawsuits & Judgments Lawyer
You were served with a summons, or a judgment has already been entered, and the next move you make decides whether you keep your paycheck, your bank balance, and your home equity. Wadhwani & Shanfeld is a consumer bankruptcy and debt relief law firm that handles creditor lawsuits, judgments, wage garnishments, and bank levies for people in Santa Monica and throughout Los Angeles County, Orange County, Riverside County, and San Bernardino County.
A Santa Monica lawsuits and judgments lawyer works on two fronts: the lawsuit before a judgment exists, and the collection tools a creditor can use after one does. In the first stage you have a short window to file a written answer, and an expired limitations period is a defense that only counts if you raise it. In the second stage, a judgment gives the creditor the power to garnish wages and levy bank accounts for years.
Many of these cases are filed in the Santa Monica courthouse of the Los Angeles County Superior Court, so the pressure is local and the deadlines are real. Responding the right way can end the case, shrink it, or move it into federal bankruptcy court where collection stops.
Why Choose Wadhwani & Shanfeld for Creditor Lawsuits and Judgments
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. Together the team brings more than 90 years of combined legal experience to creditor lawsuits, judgments, garnishments, and the bankruptcy and settlement options that follow. The firm serves Santa Monica, the Westside, and communities across Los Angeles, Orange, Riverside, and San Bernardino Counties. Clients speak directly with an attorney from the first call, and cases can be handled 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. 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.
That depth matters here because a judgment fight is rarely only about the lawsuit. The right answer often depends on which property California protects, whether Chapter 7 or Chapter 13 fits your income, and whether settlement beats both. Because the firm handles bankruptcy and its alternatives, the recommendation follows your situation, not the only tool a firm happens to offer. When a garnishment, foreclosure sale, or repossession is days away, the firm acts fast.
Common Lawsuit and Judgment Situations We Handle
- Credit Card Collection Suits: Banks and debt buyers sue on old card balances, often hiring collection law firms. Whether the suit is timely depends on the limitations period for the underlying contract, and the plaintiff must still prove it owns the account.
- Medical Bill Judgments: Unpaid hospital and provider balances can become judgments. These can generally be discharged in bankruptcy, and recent California law limits how medical judgments may be renewed.
- Personal Loan and Payday Loan Suits: Online lenders and installment lenders sue on defaulted loans. These unsecured debts are usually dischargeable, and we look closely at how the lender calculated what it claims.
- Wage Garnishments: Once a creditor has a judgment, it can order your employer to withhold a portion of your pay. The amount is capped by formula, and you may be able to claim a larger exemption if the money is needed to support your family.
- Bank Account Levies: A levy can freeze your account without warning. California automatically shields a set amount per judgment debtor, and that protection applies without you filing a claim.
- Repossession Deficiency Suits: After a lender sells your repossessed car for less than you owe, it may sue for the gap. The lender must have followed strict notice rules to collect that deficiency at all.
- Judgment Liens on Real Property: A recorded judgment can attach to a Santa Monica home or other real estate, complicating a sale or refinance. Exemptions and bankruptcy can sometimes remove or limit the lien.
- Old Judgments and Renewals: A California money judgment lasts 10 years and can be renewed. Knowing whether a judgment is still enforceable can change your whole strategy.
What to Do the Day You Are Served or Your Wages Are Garnished
Read the summons for the response deadline and write it on your calendar. Ignoring it invites a default judgment, and a default is how most consumers lose these cases. A response must be a written answer filed with the court. A phone call to the collector does not stop the clock, and neither does a promise to pay.
Gather the paperwork before you call: the summons and complaint, any letters from the creditor or its lawyers, recent pay stubs, bank statements, and a list of what you own and owe. Do not make a payment or sign anything to “show good faith” until you have spoken with an attorney. A signed written acknowledgment of a debt can restart a limitations period, which is exactly the opening a collector on an old account wants. A payment alone cannot revive a debt that is already time-barred, but a signature can cause trouble.
Suits against Santa Monica residents are commonly filed in the Los Angeles County Superior Court, which has a courthouse in Santa Monica, and some are filed in other districts depending on where the contract was made or the debtor lives. Check the caption on your papers for the court and case number. If the creditor already has a judgment, look for a notice of levy or a letter from your employer about a garnishment order. Both can be challenged or reduced.
If a bank account is frozen, remember the automatic deposit account exemption: the bank must set aside a protected amount for each judgment debtor before turning money over. That protection does not cover levies for child or spousal support, wages owed to someone else, or debts owed to the state. For anything beyond it, a claim of exemption has to be filed on time.
Filing Chapter 7 or Chapter 13 triggers the automatic stay, which halts lawsuits, garnishments, levies, repossessions, and foreclosure proceedings the moment the petition is filed. We can often prepare an emergency filing quickly. Santa Monica residents file in the Los Angeles Division of the U.S. Bankruptcy Court for the Central District of California, and the zip code on your street address, not a P.O. box, determines the division.
How Wage Garnishment and Bank Levy Limits Actually Work
On an ordinary consumer judgment, a garnishment cannot take more than the lesser of two figures: 20 percent of your weekly disposable earnings, or 40 percent of the amount by which your weekly disposable earnings exceed 48 times the minimum hourly wage. For biweekly, semimonthly, and monthly pay the multiplier is 96, 104, and 208 instead of 48. If the local minimum wage is higher than the state’s, the local rate is used. That matters in Santa Monica, where the local minimum is often higher, which can raise the protected portion of your pay.
Separately, you can ask the court to exempt the part of your earnings that is proven necessary to support you or your family. This takes paperwork and a showing of real expenses, and it is worth doing right. California also bars an employer from firing you because your wages are garnished for a single judgment.
How Long a Judgment Lasts and What a Creditor Can Do With It
A California money judgment is enforceable for 10 years from entry. The creditor can extend that by filing a renewal application, which restarts a 10-year period. Since a 2023 change, renewal is limited to a single five-year extension for medical expense judgments with unpaid principal under $200,000 and personal debt judgments with unpaid principal under $50,000. When enforceability ends, enforcement stops and liens created by enforcement fall away.
A judgment is not the end of your options. Bankruptcy can discharge it, a negotiated payoff can settle it for less, and in some cases a judgment lien can be removed from your home. Which route is right turns on your income, your equity, and what the creditor can realistically collect. California does not use the federal exemptions. Filers choose between two state systems, one built around a homestead exemption and one with a flexible wildcard, and you must live in California long enough to use them. Picking the wrong one can cost you property, so we choose carefully for each client.
Lawsuits and Judgments FAQ
How long do I have to respond to a debt collection lawsuit?
The deadline is printed on your summons, and it is short. You must file a written answer with the court by that date. Calling the creditor or sending a letter to the collector does not count. If you miss it, the creditor can ask for a default judgment.
Can a creditor sue me for an old debt?
They can file, but the case may be barred. In California the limit is four years for written contract debts and two years for oral contracts. The expired deadline is a defense you must raise in your 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. A signed written acknowledgment of the debt can restart the period, which is why you should not sign anything a collector sends you without advice first.
What happens if I ignore the lawsuit?
The creditor can obtain a default judgment without proving much. That judgment can lead to wage garnishment, bank levies, and liens on real property. Many default judgments can be set aside or wiped out in bankruptcy, but it is far easier to respond first.
How much of my paycheck can be garnished?
The cap is the lesser of 20 percent of weekly disposable earnings or 40 percent of the amount your weekly disposable earnings exceed 48 times the minimum hourly wage, with different multipliers for longer pay periods. The local minimum wage is used when it is higher. You can also ask the court to exempt more if you need it to support your family.
Will bankruptcy stop a garnishment or levy?
Yes. Filing Chapter 7 or Chapter 13 creates the automatic stay when the case is filed, which stops most garnishments, levies, and lawsuits. Your employer or bank must stop once it is notified.
Can my employer fire me for being garnished?
California law bars an employer from firing you because your wages are garnished for one judgment. Your employer will learn of the garnishment because it must carry out the order, but it cannot lawfully terminate you for a single judgment.
Is a collector allowed to harass me or lie about what I owe?
No. The Rosenthal Act covers original creditors as well as third-party collectors. A consumer can recover actual damages, an additional $100 to $1,000 for willful and knowing violations, and attorney fees if they prevail. The suit must be filed within one year, and a collector can avoid liability by correcting a curable violation within 15 days.
Can a judgment be collected forever?
No. It lasts 10 years from entry and can be renewed, with limits on renewal for certain medical and personal debt judgments. After enforceability ends, the creditor can no longer enforce it and liens from enforcement are extinguished.
Is it worth hiring a lawyer for a small collection suit?
Often yes. A procedural defense, a limitations argument, or a Rosenthal Act claim can end the case or turn it around. A small default judgment also carries the same garnishment and levy powers as a large one, so the cost of ignoring it adds up.
What if the lawsuit is over a repossessed car?
The lender must send written notice before disposing of the vehicle, generally at least 15 days, and 20 days if mailed from or to an address outside California. It can seek a deficiency only if it gave the required notice within 60 days of repossession. Defects in that notice can defeat the claim.
Can I keep my home if a creditor records a judgment lien?
Often, yes. California’s homestead exemption protects a portion of equity, and in Chapter 7 a protected home generally stays with you. If there is more equity than the exemption covers, or you are behind on payments, Chapter 13 can let you keep the home while you pay over time.
Serving Santa Monica Lawsuits and Judgments Clients Across Southern California
We represent clients in Santa Monica and the surrounding Westside, including Hollywood, and across the San Fernando Valley in Sherman Oaks, Encino, Woodland Hills, Van Nuys, Reseda, Northridge, Granada Hills, North Hollywood, North Hills, Mission Hills, San Fernando, and Sylmar. Throughout Los Angeles County we also work with clients in Los Angeles, Long Beach, Lakewood, Torrance, Compton, Inglewood, Gardena, Norwalk, Bellflower, Paramount, Cerritos, Signal Hill, Huntington Park, Santa Clarita, Lancaster, Palmdale, and the Antelope Valley community of Acton.
Our work reaches into Orange County, including 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 Riverside and San Bernardino Counties and the Inland Empire, we serve Ontario, Rancho Cucamonga, Upland, Fontana, San Bernardino, Riverside, Pomona, Chino, Chino Hills, Montclair, Claremont, Glendora, West Covina, and the Coachella Valley. Wherever the suit was filed, we can respond to it and protect your pay and property.
Talk to a Santa Monica Lawsuits and Judgments Attorney Today
A summons has a deadline, and a judgment gives a creditor years of collection power. A Santa Monica lawsuits and judgments attorney at Wadhwani & Shanfeld can review your papers, explain whether to answer the suit, negotiate, or file bankruptcy, and tell you honestly which path gives you the best result. Call for a free consultation and speak directly with an attorney, in person or through a fully virtual meeting, whichever is easier for you.
