Panorama City Bankruptcy Lawyer
For most people in Panorama City, the hardest part of bankruptcy is not the paperwork, it is realizing the process is faster and more protective than they feared. A single filing can stop a garnishment, a lawsuit, or a foreclosure sale the moment it reaches the court. 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 residents of Panorama City and across Southern California. Finding a Panorama City bankruptcy lawyer who can talk with you directly, and quickly, is often the difference between losing a paycheck and keeping it.
Panorama City sits in the San Fernando Valley, and that matters for your case in a practical way. Bankruptcy cases are assigned to a division of the U.S. Bankruptcy Court for the Central District of California based on the debtor’s home zip code, and Panorama City falls within the San Fernando Valley Division, which also covers neighbors like Van Nuys, North Hills, Mission Hills, Pacoima, and Sun Valley. Knowing which division will hear your case, and how its trustees and judges tend to handle exemptions and plan confirmation, is part of what a local bankruptcy attorney brings to the table.
Why Choose Wadhwani & Shanfeld for Panorama City Bankruptcy Cases
Together the firm’s attorneys bring more than 90 years of combined legal experience to Los Angeles County, Orange County, Riverside County, and San Bernardino County, including communities across the San Fernando Valley like Panorama City. Clients get direct access to an attorney from the very first call, a free consultation, and the option to handle everything 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 technical fluency shows up in how cleanly and quickly a case gets prepared. 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. Both are Board-Certified, a distinction held by a small fraction of attorneys nationwide.
Those credentials matter most when something is urgent. The firm acts fast when a garnishment, foreclosure sale, or repossession is only days away, and because it handles both bankruptcy and the alternatives, such as debt settlement and loan modification, the recommendation you get is based on what fits your situation rather than on the only service a firm happens to offer.
Common Debt Situations That Bring Panorama City Residents to Bankruptcy Court
- Credit Card and Medical Debt: Unsecured balances like these are the classic Chapter 7 target. If your household income passes the means test, which compares you to the California median for your household size, these debts can be wiped out, usually within about four months.
- Wage Garnishment: A creditor with a judgment can take a slice of each paycheck, generally capped at the lesser of 20% of weekly disposable earnings or 40% of the amount those earnings exceed 48 times the minimum hourly wage. Filing Chapter 7 or Chapter 13 stops most garnishments when the case is filed.
- Collection Lawsuits: Suits from firms such as Hunt & Henriques, Reese Law Group, or Patenaude & Felix come with a response deadline. Missing it can mean a default judgment, so the order of operations matters: answer, negotiate, or file.
- Mortgage Arrears and Foreclosure: Chapter 13 lets you catch up missed payments over three to five years while keeping the home, and in some cases strip off a wholly unsecured second mortgage.
- Car Repossession and Deficiencies: After a repossession, the lender still often claims you owe the gap between the sale price and the loan. Those deficiency balances are typically dischargeable.
- IRS Tax Debt: Some older income tax debt can be eliminated if it meets specific timing rules, and the firm also represents clients with the IRS to stop levies and arrange payment plans.
- Student Loans and Personal Loans: Personal and payday loans are generally dischargeable, while most student loans are not, which is why the firm also offers student loan debt strategies.
- Small Business Debt: Owners of Valley shops, trucking operations, and service businesses often carry personal guarantees, so small business bankruptcy and business debt solutions can be part of the picture.
What to Do Right Now If Creditors Are Closing In
Start by sorting what you have received by urgency. A summons and complaint from a court is more pressing than a collection letter, because a response deadline is running. A notice of default on your mortgage starts a timeline under California law: the sale date cannot be set earlier than three months and 20 days after the notice of default is recorded, and you can reinstate a missed-payment default up to five business days before the sale. Once a notice of sale issues, it must be mailed and posted at least 20 days before the sale. For a repossessed car, the lender must give at least 15 days’ written notice before selling it, and you can ask in writing for the redemption period to be extended by 10 days.
Gather your last two years of tax returns, recent pay stubs, a list of every creditor with balances, your mortgage and car loan statements, and any court papers you have been served with. Then call and talk to an attorney before you pay anyone anything out of panic. Paying a time-barred debt, for example, does not revive it, but it can muddy your position, and a written contract debt generally can only be sued on for four years while an oral one is limited to two. That expired deadline is a defense you must raise in a written answer, or a court can still enter judgment against you.
Pay attention to your bank account as well. California automatically protects a set amount in a deposit account from a levy without you filing anything, but that protection does not cover levies for child or spousal support or debts owed to the state. If your account has been frozen, tell your attorney immediately.
Because your home address controls the filing division, a Panorama City case is filed in the San Fernando Valley Division of the U.S. Bankruptcy Court for the Central District of California, which sits in Woodland Hills. If a creditor sues you in state court, Los Angeles County Superior Court has courthouses in Van Nuys, San Fernando, and Chatsworth that serve Valley residents. The firm files in every division of the Central District, so which courthouse applies is something we sort out for you.
Protecting Your Home, Car, and Paycheck Under California Exemptions
California has opted out of the federal exemption scheme, so filers choose between two state systems for the entire case. One, found in the Code of Civil Procedure’s section 704 provisions, carries a large homestead exemption for homeowners that is tied to local median home prices and adjusted annually, with a statutory floor and a ceiling. The other, under section 703.140(b), has smaller dollar amounts for a residence and vehicle but includes a flexible wildcard that often suits renters better. Those figures adjust periodically, so the right choice depends on current numbers and on what you own.
You generally must have lived in California for at least 730 days to use these exemptions. Picking the wrong system can cost you property you could have kept, which is one reason the choice deserves careful attention. The vast majority of the firm’s Chapter 7 clients keep everything they own, because exemptions are worked through before anything is filed.
Panorama City Bankruptcy Questions, Answered Plainly
How fast can bankruptcy stop a wage garnishment?
The automatic stay takes effect the moment your petition is filed, and creditors must stop collection. In an emergency, the firm can often prepare and file quickly. Your employer will then need to stop withholding, though it can take a pay cycle or so for payroll to catch up.
Will I lose my house in Chapter 7?
Most clients do not. The question is whether your equity falls within California’s homestead exemption. If it does and you are current on the mortgage, you keep the home. If you have more equity than the exemption covers or are behind on payments, Chapter 13 may be the better route.
What debts survive bankruptcy?
Child support, alimony, most student loans, most government fines, and debts for injuries caused by drunk driving generally cannot be discharged. Credit cards, medical bills, personal loans, payday loans, and deficiency balances usually can be.
Do I have to qualify under the means test for Chapter 7?
Yes. It compares your household income to the California median for your household size and then accounts for actual expenses. If your income is too high, Chapter 13 is usually the alternative, and it also fits people who have priority tax debt or support arrears.
Can I file again if I have filed before?
Yes, subject to waiting periods. You must wait 8 years between Chapter 7 filings, 4 years to file Chapter 13 after a Chapter 7, 2 years between Chapter 13 filings, and generally 6 years to file Chapter 7 after a Chapter 13, though that last period can be shortened if your plan paid enough to unsecured creditors.
How long does bankruptcy stay on my credit report?
A Chapter 7 can remain for up to 10 years from filing, and Chapter 13 is typically removed after 7 years. Its effect on your score fades well before then, and many clients see recovery begin within the first year with responsible use of a secured card.
Can my employer fire me for filing?
No. California and federal law prohibit an employer from firing you solely because you filed for bankruptcy. Separately, California’s Labor Code bars firing an employee because wages are garnished for a single judgment.
A collector’s judgment against me is years old. Is it still collectible?
A California money judgment is enforceable for 10 years from entry and can be renewed. Under a rule that took effect in 2023, 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. Older judgments are worth reviewing before you assume they are gone or still alive.
What if a collector broke the rules when contacting me?
California’s Rosenthal Act covers original creditors as well as third-party collectors. A consumer can recover actual damages, a court can add $100 to $1,000 for willful and knowing violations, and a prevailing consumer can recover reasonable attorney fees. The deadline to sue is one year, so do not sit on it. A collector can avoid liability if it fixes a curable violation within 15 days of learning of it.
Can a paralegal or notary file my bankruptcy for me?
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. Mistakes can cost you property or your discharge, which is why filing through an attorney matters.
Do I have to come into an office to file?
No. The firm handles cases fully by phone, email, video, and online chat, so you can work with an attorney without leaving Panorama City.
Serving Panorama City and Valley Bankruptcy Clients Across Southern California
Wadhwani & Shanfeld represents clients in Panorama City and throughout the San Fernando Valley, including North Hills, Mission Hills, Van Nuys, Reseda, Northridge, Granada Hills, North Hollywood, San Fernando, Sylmar, Encino, Woodland Hills, and Sherman Oaks. The firm also serves the Westside and Hollywood, Santa Monica, and Santa Clarita, as well as the rest of Los Angeles County, from Long Beach, Torrance, Compton, Inglewood, and Lakewood to Lancaster, Palmdale, and the Antelope Valley, including Acton.
Beyond Los Angeles County, the firm works with clients across Orange County in Anaheim, Santa Ana, Garden Grove, Fullerton, Huntington Beach, and Newport Beach, and throughout Riverside and San Bernardino Counties, including the Inland Empire communities of Ontario, Rancho Cucamonga, Upland, Fontana, Pomona, Chino, and Riverside, as well as the Coachella Valley.
Talk With a Panorama City Bankruptcy Attorney Today
If calls, letters, or a court date are piling up, you do not need to work out the right chapter or exemption system on your own. A Panorama City bankruptcy attorney at Wadhwani & Shanfeld will review your income, property, and debts, explain every option inside and outside of bankruptcy, and tell you honestly which path gives you the best fresh start. Call today for a free consultation and speak directly with an attorney, in person or by video, whichever is easier for you.
