Calabasas Bankruptcy Lawyer
A bankruptcy filed by a Calabasas resident is assigned to the San Fernando Valley Division of the U.S. Bankruptcy Court for the Central District of California, and that assignment is based on the filer’s home zip code, not on where the creditors sit or where the lawyer works. Knowing which division handles your case is one of the first practical details that separates a clean filing from a rejected one. Wadhwani & Shanfeld is a consumer bankruptcy and debt relief law firm that handles Chapter 7, Chapter 13, debt settlement, foreclosure defense, wage garnishment, creditor lawsuits, and IRS tax debt for clients across Los Angeles County and Southern California.
If you are searching for a Calabasas bankruptcy lawyer, you are probably dealing with something concrete: a garnishment notice, a summons from a collection firm, a missed mortgage payment, or a bank account that suddenly froze. Calabasas households often carry high housing costs, large mortgages, and leased or financed vehicles, which means the question of what you can keep matters as much as what you can erase.
The sections below cover what bankruptcy can and cannot do for a Calabasas filer, how California’s exemption rules protect property, what to do in the first days after a lawsuit or garnishment, and answers to the questions people ask most.
Why Calabasas Clients Choose Wadhwani & Shanfeld for Bankruptcy Help
The firm is led by two Board-Certified Specialists in Consumer Bankruptcy, certified through the American Board of Certification, with more than 90 years of combined legal experience. Clients in Calabasas and throughout Los Angeles, Orange, Riverside, and San Bernardino Counties get direct access to an attorney from the first call, a free consultation, and the choice of handling the whole case by phone, email, video, or online chat. Virtual consultations are available for people who would rather not drive anywhere.
Raj Wadhwani, 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 close and a petition has to be prepared and filed quickly. Greg Shanfeld, 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 Specialists in Consumer Bankruptcy.
The firm files in every division of the Central District of California bankruptcy court, so there is no handoff to outside counsel if your case lands in a different division than you expected. Because the firm handles both bankruptcy and its alternatives, the recommendation you get is built around your income, property, and goals, and sometimes that recommendation is not to file at all.
Common Debt Situations That Bring Calabasas Residents to a Bankruptcy Attorney
- Credit Card and Medical Debt: Unsecured balances are the core of most Chapter 7 cases. They can generally be discharged, and a collection lawsuit over them stops the moment a petition is filed.
- Mortgage Arrears and Foreclosure: Chapter 13 lets you catch up missed payments over three to five years while keeping the home, and filing halts a scheduled sale through the automatic stay.
- Second Mortgages and HELOCs: In some Chapter 13 cases, a second mortgage that is wholly unsecured can be stripped off. Second mortgage settlements and loan modification are also options outside court.
- Wage Garnishment: A creditor with a judgment can take part of each paycheck. Filing Chapter 7 or Chapter 13 stops most garnishments when the case is filed.
- Creditor Lawsuits and Judgments: Collection firms sue in Los Angeles County Superior Court. A bankruptcy filing freezes the case, and judgments already entered can often be addressed in the same filing.
- IRS Tax Debt: Some older income tax debt can be discharged if it meets the timing rules, and other tax debt can be handled through payment arrangements or a Chapter 13 plan.
- Student Loans and Personal Loans: Personal and payday loans are typically dischargeable. Most student loans are not, so strategy matters here.
- Small Business Debt: Owners who guaranteed business loans or ran a sole proprietorship often carry personal liability, which makes small business bankruptcy and business debt solutions part of the picture.
What to Do When Collection Has Already Started
If you have been served with a lawsuit, the response deadline is the most important date in your life right now. A debtor who ignores a summons risks a default judgment, and once a judgment exists a creditor can pursue wage garnishment and bank levies. Call an attorney before the deadline passes. Collection suits in Calabasas are filed in Los Angeles County Superior Court, which operates through a network of courthouses across the county, and the case may land in a courthouse you did not expect.
Do not ignore the statute of limitations as a defense, but do not assume it protects you automatically. The deadline to sue on a written contract debt is four years, and on an oral contract two years. If that period has expired, you must raise it in a written answer to the lawsuit, or the court can still enter judgment against you. Be careful with small payments too: a payment cannot revive a debt that is already time-barred, but a signed written acknowledgment of the debt can restart the clock, so do not sign anything a collector sends without talking to a lawyer.
For garnishments, gather your last few pay stubs, the garnishment order, and any judgment paperwork. 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, with higher multiples for biweekly, semimonthly, and monthly pay. If your wages are needed to support your family, you can ask the court to exempt the portion you can prove is necessary. Your employer cannot fire you because wages are garnished for a single judgment.
If a levy hits your bank account, California automatically shields a set amount in a deposit account from a judgment creditor without any claim being filed, and the bank must apply that protection before turning money over. That exemption does not apply to levies for wages owed to someone else, child or spousal support, or debts owed to the state. Gather recent statements, and call right away.
If you are behind on a mortgage, know the foreclosure timeline. A sale date can be set no earlier than three months and 20 days after the notice of default is recorded. The notice of sale must be mailed and posted at least 20 days before the sale, and a monetary default can be reinstated until five business days before the sale date. For a financed car, the lender must give at least 15 days’ written notice of intent to dispose of a repossessed vehicle, and 20 days if mailed from or to an address outside California. You can request in writing that the redemption period be extended by 10 days.
The filing itself goes to the San Fernando Valley Division, which sits in Woodland Hills and serves Calabasas, Agoura Hills, and nearby communities. Your street address zip code, not a P.O. box, determines the division, and the court’s Court Locator confirms it. Westlake Village, Thousand Oaks, Newbury Park, Simi Valley, and Malibu are handled by the Northern Division instead, even where the zip code is in Los Angeles County, which is why a neighbor’s filing location may differ from yours.
Keeping Your Home, Car, and Savings Under California’s Exemption Rules
California has opted out of the federal exemption scheme. A Calabasas filer must choose one of two state systems for the entire case, and you cannot mix and match. One system, built around the homestead exemption, is generally better for homeowners with equity. The other, with a flexible wildcard, often suits renters or people with little home equity. To use California’s exemptions you must have lived in the state for at least 730 days before filing.
The homestead exemption is the piece Calabasas homeowners care about most. It is set as the greater of the prior-year countywide median single-family sale price, up to a ceiling, or a statutory floor, and both the floor and the ceiling adjust each year for inflation. Because Los Angeles County home prices are high, the exemption can protect a meaningful amount of equity, but a Calabasas home bought at a premium can still exceed it. When equity is above the exemption, Chapter 7 may put the home at risk, and Chapter 13 is often the better route because you keep the property and pay creditors over time. The other system’s dollar amounts are adjusted every three years based on the California consumer price index.
Vehicles, household goods, tools of the trade, and retirement accounts are also protected. Choosing the system is a decision made after reviewing your equity, your income, and what you own, and it is one the firm’s Board-Certified attorneys handle with care before any petition is filed.
Chapter 7 or Chapter 13: Which Fits a Calabasas Household
Chapter 7 wipes out qualifying unsecured debt, usually within about four months. To qualify, your income generally must pass the means test, which compares household income to the California median for your household size and then accounts for actual expenses. Higher earners, which describes many Calabasas households, are often above the median and need a closer look at allowable expenses before anyone decides Chapter 7 is off the table.
Chapter 13 suits people with steady income who need structure. Debts are reorganized into one monthly payment over three to five years, and creditors are bound once the court confirms the plan. It also works for people who owe priority tax debt or support arrears, who have equity beyond what exemptions cover, or who are behind on a mortgage or car loan and want to keep the property. A calabasas bankruptcy attorney can run both calculations side by side so the choice rests on numbers, not guesses.
Calabasas Bankruptcy Questions, Answered
Can I file bankruptcy if I live in Calabasas but my creditors are elsewhere?
Yes. The filing division is based on your own home zip code, not on where creditors are located. Calabasas filers go to the San Fernando Valley Division of the Central District of California bankruptcy court.
Will I lose my house in bankruptcy?
Most clients keep their homes. In Chapter 7, the question is whether your equity is covered by the California homestead exemption and whether you are current on the mortgage. If you have more equity than the exemption covers or you are behind on payments, Chapter 13 lets you keep the home and catch up over time.
How fast does bankruptcy stop a garnishment or lawsuit?
The automatic stay takes effect the moment the petition is filed. It halts lawsuits, judgments, bank levies, wage garnishments, repossessions, and foreclosure proceedings. When a sale date or levy is days away, the firm can often prepare and file a case very quickly.
What debts can be erased?
Most unsecured debts, including credit cards, medical bills, personal loans, payday loans, and deficiency balances after a repossession or foreclosure. Some older income tax debt can be eliminated if it meets timing rules. Child support, alimony, most student loans, most government fines, and debts for injuries caused by drunk driving generally cannot be discharged.
How long does a creditor have to sue me on an old debt?
Four years on a written contract and on a book account, and two years on an oral contract. The expired deadline is a defense you must raise in a written answer. A payment will not revive a debt that is already time-barred, but a signed written acknowledgment can restart the period.
Does a judgment against me last forever?
No. A California money judgment is enforceable for 10 years from entry, and a creditor can file to renew it for another 10.
Can a collector be held liable for harassment under California law?
Yes. The Rosenthal Act covers original creditors as well as third-party collectors. A consumer can recover actual damages, and a court can add $100 to $1,000 if the collector acted willfully and knowingly. A prevailing consumer can also recover reasonable attorney fees, and the lawsuit must be filed within one year. A collector can escape liability by correcting a curable violation within 15 days.
If a car lender repossesses my vehicle, can I still owe money?
Possibly. A deficiency is allowed only if the lender sent a proper notice within 60 days of repossession or surrender containing the required items. You can request an accounting within 45 days after the vehicle is sold, and a surplus must be accounted for automatically. These issues are worth reviewing before deciding how to proceed.
Will my employer find out I filed?
Not automatically. They may learn if they are a creditor, if a garnishment has to stop, or if Chapter 13 payments are deducted from your paycheck. California and federal law prohibit an employer from firing you solely because you filed.
How long must I wait to file again after a previous bankruptcy?
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 shorten if your plan paid enough to unsecured creditors.
Is it worth hiring a lawyer instead of using a document preparer?
A bankruptcy petition preparer can type information into forms but cannot give legal advice, choose your exemptions, or represent you if a creditor or trustee objects. Mistakes can cost you property or your discharge, which is why representation by a bankruptcy attorney matters, especially when home equity is involved.
Do I have to come in person for a consultation?
No. The firm handles cases entirely by phone, email, video, and online chat, and offers 100% virtual consultations for clients anywhere in Southern California.
Serving Calabasas Bankruptcy Clients and the Surrounding Communities
From Calabasas and the western edge of Los Angeles County, Wadhwani & Shanfeld represents clients across the San Fernando Valley and the Westside, including Woodland Hills, Encino, Reseda, Northridge, Granada Hills, North Hills, Mission Hills, North Hollywood, San Fernando, Sylmar, Van Nuys, Sherman Oaks, Hollywood, and Santa Monica. The firm also serves Santa Clarita and the Antelope Valley, including Lancaster, Palmdale, and Acton.
Beyond Los Angeles County, the firm works with clients throughout Orange County, in Anaheim, Santa Ana, Garden Grove, Fullerton, Huntington Beach, Costa Mesa, Newport Beach, Tustin, and Mission Viejo, and across the Inland Empire in Riverside County and San Bernardino County, including Ontario, Rancho Cucamonga, Upland, Fontana, San Bernardino, Pomona, Chino, Claremont, and the Coachella Valley. Closer to the coast and south, clients come from Long Beach, Torrance, Inglewood, Compton, Gardena, and Cerritos, with remote handling available everywhere.
Talk to a Calabasas Bankruptcy Attorney Today
If collection calls, a garnishment, or a foreclosure notice are driving your decisions, speak with a Calabasas bankruptcy attorney at Wadhwani & Shanfeld. Call for a free consultation and you will talk directly with an attorney who will review your income, property, and debts and tell you honestly whether Chapter 7, Chapter 13, settlement, or another path gives you the best fresh start. If a sale date or levy is close, say so on the first call, and the firm will act fast.
