Glendale Chapter 7 Bankruptcy Lawyer
The goal in a Chapter 7 case is simple to state: the calls stop, the lawsuits and garnishments stop, qualifying debt is wiped out, and you keep the things you need to live and work. Wadhwani & Shanfeld is a consumer bankruptcy and debt relief law firm that handles Chapter 7, Chapter 13, debt settlement, foreclosure defense, wage garnishment, and creditor lawsuits for people across Los Angeles County, including Glendale, and throughout Southern California.
A Glendale Chapter 7 bankruptcy lawyer earns their fee in the details most people never see: which exemption system protects your property, whether your income passes the means test, which of your debts actually qualify for discharge, and which court will hear your case. Chapter 7 typically wraps up in roughly four months, and most filers keep everything they own. Getting the preparation right before filing is what makes that outcome possible.
Glendale residents often come to us after a collection lawsuit has been served, a paycheck has been garnished, or a bank account has been levied. Each of those can be halted by the automatic stay the moment a petition is filed. Below is what a Chapter 7 filing involves for someone in Glendale, from qualification to discharge.
Why Choose Wadhwani & Shanfeld for Your Glendale Chapter 7 Case
Wadhwani & Shanfeld has helped more than 30,000 individuals and families get out from under debt, and the firm serves clients across Los Angeles, Orange, Riverside, and San Bernardino Counties. The firm is led by two Board-Certified Specialists in Consumer Bankruptcy through the American Board of Certification, a distinction held by only a small fraction of attorneys nationally, with more than 90 years of combined legal experience between its lawyers. Clients get direct access to an attorney from the first call, free consultations, and the option of handling the entire case by phone, email, video, or online chat, including 100% virtual consultations.
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. That familiarity with the court’s filing systems matters when a sale date or levy is days away. 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.
For a Chapter 7 filer, those credentials translate into practical things. The firm files in every division of the U.S. Bankruptcy Court for the Central District of California, so the right division is never a guessing game. It acts fast when a garnishment, foreclosure sale, or repossession is imminent. And because the firm also handles Chapter 13 and debt settlement, the recommendation you get is based on what fits your finances, not on the only service on offer.
Debts and Situations That Lead Glendale Residents to Chapter 7
- Credit Card Balances: Unsecured card debt is the most common reason for a Chapter 7 filing. Once the balances outgrow what your income can service, interest keeps the total climbing even while you pay.
- Medical Bills: A hospital stay or an illness can generate debt that has nothing to do with spending habits. Medical balances are unsecured and generally dischargeable.
- Collection Lawsuits: Being served with a complaint from a debt buyer or collection firm starts a response clock. Chapter 7 can end the suit and prevent a judgment from turning into a garnishment or bank levy.
- Wage Garnishment: A judgment creditor can take a share of each paycheck, capped by a formula tied to your disposable earnings and the minimum wage. Filing stops most garnishments once the case is opened.
- Personal and Payday Loans: Unsecured personal loans and payday loans are typically eliminated in Chapter 7, which can free up income that was going to fees and interest.
- Repossession Deficiencies: After a vehicle is sold at auction, the lender can still pursue you for the shortfall. That deficiency balance is unsecured debt that Chapter 7 can discharge.
- Older Income Tax Debt: Some income taxes can be discharged if they meet specific timing rules. This is fact-dependent, and we review the tax history before telling anyone it qualifies.
- Small Business Debt: Owners whose businesses did not work out often carry personal liability on business loans and cards, and Chapter 7 can address that exposure.
What to Do Now if You Are Considering Chapter 7 in Glendale
Start by sorting your mail. Any summons, notice of default, notice of sale, or notice of intent to dispose of a vehicle carries a deadline, and those deadlines drive how quickly we need to move. If you have been sued, note the date you were served. The time to respond is short, and an expired limitations period is only a defense if it is raised in a written answer; ignoring the suit can still produce a judgment.
Gather your last several pay stubs, recent bank statements, your most recent tax return, a list of every creditor, and paperwork on any home or vehicle you own. Chapter 7 eligibility starts with the means test, which compares your household income to the California median for your household size and then accounts for actual expenses. Having clean documents lets an attorney tell you quickly where you stand.
Do not pay one creditor in a rush before filing, and do not move assets or transfer property to a relative. Both can create problems with the bankruptcy trustee. Also avoid putting new charges on credit cards you plan to include in the case. If a bank account was just levied, know that California automatically shields a set amount of deposit account funds per judgment debtor without a claim, though that protection does not cover levies for wages owed to another, support, or debts owed to the state.
Where you file depends on your street address, not a P.O. box. The U.S. Bankruptcy Court for the Central District of California assigns cases to the Los Angeles Division, the San Fernando Valley Division, or another division based on your zip code, and the court’s locator tool confirms which applies. Glendale cases are sorted this way, and getting the division right avoids delays. Because the firm files in every division, we confirm it for you. If a creditor has sued you in state court, the case would be in the Los Angeles County Superior Court system, which has a courthouse in Glendale, and the automatic stay halts that suit as soon as your petition is on file.
Before the case closes, you will attend a meeting of creditors, usually brief, where a trustee confirms your paperwork. Most clients appear without creditors asking a single question. We prepare you for it, and we handle the filing itself so errors that could cost you property or your discharge do not creep in.
Protecting Your Home, Car, and Savings in a Glendale Chapter 7
The word “liquidation” scares people, but California’s exemption laws are why most of our clients keep everything they own. California has opted out of the federal exemption scheme, so you choose between two state systems: the standard system under CCP section 704, or the alternative set found in CCP section 703.140(b). You must pick one for your entire case, and you generally must have lived in California long enough, 730 days, to use the state’s exemptions.
The section 704 system includes a homestead exemption that is tied to the countywide median home price within a floor and a ceiling, adjusted annually for inflation. In Los Angeles County, where home values run high, that can protect substantial equity for many homeowners. The 703.140(b) system offers a smaller residence exemption but a flexible wildcard that often suits renters who have little home equity but other property to protect, along with set amounts for vehicles and tools of the trade. Those dollar amounts are adjusted periodically, so we check current figures at the time of filing.
Choosing between the two is one of the most consequential decisions in a case. A homeowner with equity usually leans toward the homestead system; a renter with savings, a car, and a work vehicle may do better with the other. If your equity exceeds what exemptions cover, or you are behind on the mortgage and want to keep the house, Chapter 13 may fit better, and we will tell you so.
Secured debts work differently. A Chapter 7 discharge eliminates your personal liability, but a lender with a lien can still enforce it if you stop paying. If you are current on your car or mortgage and want to keep the property, we discuss how to do that. If a sale is already scheduled, filing stops it, though it may not cure the underlying default.
Glendale Chapter 7 Bankruptcy: Common Questions
How do I know if I qualify for Chapter 7?
Eligibility turns on the means test. It compares your household income to the California median for a household of your size, and if you are above it, it looks at your allowable expenses to see whether you have disposable income to repay creditors. Many people who assume they earn too much qualify once expenses are counted correctly.
How long does a Chapter 7 case take?
Most cases are completed in roughly four months from filing to discharge. The timeline can stretch if a trustee has questions about your assets or if a creditor challenges the discharge of a particular debt.
Will I lose my home or car?
Most of our clients keep both. California exemptions protect home equity, vehicles, household goods, tools of the trade, and retirement accounts, and we work through every available exemption before filing. If you have more equity than the exemption covers, we discuss alternatives such as Chapter 13.
What happens to a lawsuit already filed against me?
The automatic stay takes effect when the petition is filed and halts the lawsuit, along with judgments, bank levies, and garnishments. The creditor cannot continue the case while the stay is in place, and for dischargeable debts the case effectively ends with your discharge.
Can bankruptcy stop a wage garnishment?
Yes. Filing Chapter 7 or Chapter 13 stops most garnishments as of the filing date. Outside of bankruptcy, a garnishment on an ordinary judgment is capped by a formula tied to your weekly disposable earnings and the minimum wage, and you can ask the court to exempt more if you prove it is needed to support your family. Your employer also cannot fire you because wages are garnished for a single judgment.
Which debts can Chapter 7 not erase?
Child support, alimony, most student loans, most government fines, and debts for injuries caused by drunk driving generally survive. Some older income taxes can be discharged if they meet specific timing rules, which we check against your tax history.
Can I file Chapter 7 if I filed bankruptcy before?
Yes, subject to waiting periods. You must wait 8 years between Chapter 7 filings, and generally 6 years to file Chapter 7 after a Chapter 13, though that period can be shortened if your earlier plan paid enough to unsecured creditors. After a Chapter 7, you must wait 4 years to file Chapter 13.
What if the debt is very old and the collector is still calling?
California gives collectors four years to sue on a written contract and two years on an oral one. A payment cannot revive a debt that is already time-barred, and only a signed written acknowledgment restarts the clock on a debt still within its period. An expired deadline is a defense you must raise in a written answer if you are sued, so do not ignore a summons because the debt is old.
Can a collector break the rules and still collect?
California’s Rosenthal Act covers original creditors as well as third-party collectors. A consumer can recover actual damages, an additional $100 to $1,000 where the collector acted willfully and knowingly, and attorney fees if they prevail. The suit must be filed within one year. Violations can sometimes be negotiated into a better settlement or become leverage in your case.
Should I use a paralegal or document preparer to file?
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. Given what is at stake, representation by a bankruptcy attorney is the safer course.
Will my employer find out I filed?
Not automatically. An employer might learn of it if they are a creditor or if a garnishment must stop. California and federal law prohibit an employer from firing you solely because you filed for bankruptcy.
Serving Chapter 7 Clients From Glendale Across Southern California
We represent Glendale clients and people throughout Los Angeles County, from Glendale itself and the neighboring communities of the San Fernando Valley and the Westside, including Sherman Oaks, Van Nuys, Encino, Woodland Hills, Reseda, Northridge, Granada Hills, North Hollywood, North Hills, Mission Hills, San Fernando, Sylmar, Hollywood, and Santa Monica. We also serve Los Angeles, Long Beach, Lakewood, Torrance, Compton, Inglewood, Santa Clarita, Lancaster, Palmdale, and Acton.
Our reach extends 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 work with clients 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. Clients in Norwalk, Bellflower, Paramount, Gardena, Cerritos, Cypress, Signal Hill, and Huntington Park are welcome too, and because cases can be handled entirely by phone, email, video, and online chat, distance rarely matters.
Talk to a Glendale Chapter 7 Bankruptcy Attorney Today
If you are weighing whether to file, a conversation with a Glendale Chapter 7 bankruptcy attorney at Wadhwani & Shanfeld will tell you whether you qualify, what you keep, and whether another path makes more sense. The consultation is free, and you speak directly with an attorney from the first call.
If a garnishment, levy, foreclosure sale, or repossession is close, call right away so we can act before the deadline. Reach out to schedule a consultation by phone or video, and take back control of your finances.
