California Bankruptcy Lawyer
Wadhwani & Shanfeld is a consumer bankruptcy and debt relief law firm that helps individuals, families, and small business owners across Los Angeles, Orange, Riverside, and San Bernardino Counties get out from under credit card balances, medical bills, personal loans, mortgage arrears, and tax debt. Clients reach us through Chapter 7 and Chapter 13 bankruptcy, debt settlement, foreclosure defense, wage garnishment relief, and defense against creditor lawsuits. A California bankruptcy lawyer has to work with rules that do not exist in most other states, starting with the fact that California does not let filers use the federal exemption list.
That single feature shapes nearly every decision in a California case. The state gives you a choice between two separate exemption systems, and you must pick one for the entire case. One favors homeowners with a large homestead protection; the other offers a flexible wildcard that often suits renters. You also generally need to have lived in California for at least 730 days to use these exemptions at all. Pick the wrong system, or file too early after moving, and property you expected to keep can be at risk.
The second California-specific reality is geography. The state is split among several federal bankruptcy districts, and the Central District alone covers seven counties across five divisions. Where your case is filed depends on your zip code, which affects which courthouse you deal with and which trustees review your paperwork.
Where a California Bankruptcy Case Is Filed and Who Hears It
Our work is in the U.S. Bankruptcy Court for the Central District of California, which covers Los Angeles, Orange, Riverside, San Bernardino, Santa Barbara, Ventura, and San Luis Obispo Counties. The firm files in every division of that court. The court assigns your case to a division by the zip code of your street address (a P.O. box does not count), using the court’s own locator tool.
The Los Angeles Division handles most of Los Angeles County. The San Fernando Valley Division, which sits in Woodland Hills, takes cases from communities such as Sherman Oaks, Van Nuys, Encino, Northridge, Reseda, North Hollywood, Granada Hills, Sylmar, and San Fernando. Lancaster, Palmdale, and Santa Clarita appear on the Valley Division’s community list with footnotes, so the zip code has to be confirmed before anyone assumes a division. Orange County cases go to the Santa Ana Division. Riverside and San Bernardino County residents file in the Riverside Division. Some Los Angeles County zip codes near the Ventura County line, including Malibu, are actually served by the Northern Division, a detail that surprises people.
Getting the division right matters because a case filed in the wrong place can be delayed or transferred, and in an emergency a lost week can mean a lost house or a levied bank account. Part of what a California bankruptcy attorney does before filing is confirm the venue.
Why Choose Wadhwani & Shanfeld for California Bankruptcy Representation
Wadhwani & Shanfeld has helped more than 30,000 individuals and families resolve debt, and the firm is led by two Board-Certified Specialists in Consumer Bankruptcy through the American Board of Certification: Raj Wadhwani and Greg Shanfeld, both founding shareholders and partners. Between them and their team, the firm brings more than 90 years of combined legal experience to cases across Los Angeles, Orange, Riverside, and San Bernardino Counties, from the San Fernando Valley and the Westside to the Inland Empire, the Antelope Valley, and Orange County.
Board certification in consumer bankruptcy is held by a small fraction of attorneys nationally, and it matters in California precisely because so much turns on judgment calls: which exemption system, whether Chapter 7 or Chapter 13, whether to file now or wait. Greg Shanfeld, a University of Southern California law graduate, has handled more than 10,000 bankruptcy cases over three decades. Raj Wadhwani, a Southwestern Law School graduate, 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.
In practice, clients get direct access to an attorney from the first call, a free consultation, and fast action when a garnishment, foreclosure sale, or repossession is days away. The firm handles cases fully by phone, email, video, and online chat, and 100% virtual consultations are available, so a client in Palmdale or Fontana does not have to rearrange a work schedule to get answers. Because the firm also handles debt settlement, loan modification, IRS tax debt, and second mortgage settlements, the recommendation you get is based on what fits your finances, not on the only tool the firm owns.
Debt Situations That Lead California Residents to File
- Credit Card and Medical Debt: Unsecured balances like these are the classic Chapter 7 target. Qualification runs through the means test, which compares your household income to the California median for your household size and then looks at your actual expenses.
- Collection Lawsuits and Judgments: Once a creditor wins a judgment, it can garnish wages and levy bank accounts. A bankruptcy filing triggers the automatic stay, which halts these actions, and judgments can often be addressed within the case.
- Wage Garnishment: On an ordinary judgment, the garnishment is capped at the lesser of 20% of weekly disposable earnings or 40% of the amount by which those earnings exceed 48 times the minimum hourly wage. Filing Chapter 7 or Chapter 13 stops most garnishments when the case is filed.
- Mortgage Arrears and Foreclosure: Chapter 13 lets homeowners catch up missed payments over three to five years while keeping the property, and it can stop a scheduled sale.
- Car Repossession and Deficiency Balances: Chapter 13 can help you keep a vehicle you are behind on, and Chapter 7 can eliminate a deficiency balance left after a repossession.
- Second Mortgages: In some Chapter 13 cases, a wholly unsecured second mortgage can be stripped off, and second mortgage settlements are available outside bankruptcy.
- IRS Tax Debt: Some older income tax debt can be discharged if it meets timing rules, and the firm also represents clients with the IRS to stop levies and set up payment arrangements.
- Small Business Debt: Owners whose businesses did not work out often carry personal guarantees; the firm handles small business bankruptcy and business debt solutions.
The California Exemption Choice, and What It Means for Your Home, Car, and Savings
California has opted out of the federal exemptions, so filers choose between two state systems. The first, found in CCP section 704, includes a homestead exemption that was restructured in 2021. It is now tied to the prior year’s countywide median single-family home price, subject to a statutory floor and a ceiling, both of which adjust annually for inflation. In high-priced counties, that can protect a large amount of equity. The second system, section 703.140(b), is more modest on the residence but includes a wildcard that can be applied to any property, which is why it often works better for renters or people with little home equity. Its dollar amounts adjust every three years.
The right choice depends on what you own. A homeowner in Torrance or Sherman Oaks with meaningful equity will usually look first at the homestead. Someone with a paid-off car, a small bank balance, and tools used for work may do better under the other system. You cannot mix and match; the filer picks one system for the whole case. This is why our attorneys inventory your property before recommending anything, and why the vast majority of Chapter 7 clients keep everything they own.
Bank accounts have their own rule. California automatically protects a set amount in a deposit account from levy on an ordinary judgment, with no claim of exemption required; the bank must apply it before turning money over. That protection does not cover levies for wages owed to another person, child or spousal support, or debts owed to the state. The amount is adjusted periodically, so ask us for the current figure.
What to Do When the Deadline Is Close
If you have been served with a collection lawsuit, the response deadline is the first thing to protect. In California, an expired statute of limitations is a defense you must raise in a written answer; if you ignore the suit, the court can enter judgment anyway. Written contract and book account claims carry a four-year limit, and oral contracts two years. Making a payment on a debt that is already time-barred does not revive it, and only a signed written acknowledgment restarts the clock. Do not assume an old debt is dead, and do not assume it is alive: bring the papers to an attorney before the deadline runs.
If a garnishment is hitting your paycheck, gather your last few pay stubs, the judgment, and the garnishment notice. If you believe part of your earnings is needed to support yourself or your family, California lets a judgment debtor claim that portion as exempt, though bankruptcy often ends the garnishment faster. Labor Code section 2929 also bars an employer from firing you because of garnishment on a single judgment.
For foreclosure, timing is rigid and worth knowing. A sale date cannot be set until roughly three months and twenty days after the notice of default is recorded. The notice of sale must be mailed and posted at least twenty days before the sale, and a monetary default can be reinstated until five business days before the sale. A bankruptcy filing can stop the sale even later than that, which is why we move fast when a sale is days away. For repossession, the lender must give at least 15 days’ written notice before disposing of the vehicle (20 days if the notice is mailed from or to an address outside California), and you can request in writing a 10-day extension of the redemption period.
Gather your recent tax returns, pay stubs, a list of every creditor, mortgage and car loan statements, and any court papers or collection letters. Then call. The consultation is free, and you will speak with an attorney rather than an intake screener. Avoid two common mistakes: paying a few favored creditors right before filing, and moving money or property to relatives, either of which can create problems in the case.
Rosenthal Act Protections and Collector Misconduct
California’s Rosenthal Fair Debt Collection Practices Act reaches further than the federal law because it covers original creditors as well as third-party collectors. A consumer can recover actual damages, a court can add $100 to $1,000 if the collector acted willfully and knowingly, and a prevailing consumer can recover reasonable attorney fees. The deadline is short, one year, and the Act limits claims to individual actions rather than class actions. A collector can avoid liability by correcting a curable violation within 15 days of discovering it or receiving written notice. If a collector has been calling at work, misstating what you owe, or threatening action it cannot take, keep every voicemail, letter, and call log. Those records can matter in both a bankruptcy and a separate claim.
How Long Judgments Last and What Renewal Means
A California money judgment is enforceable for 10 years from entry. A creditor can file a renewal application, which extends enforceability for another 10 years from the filing date. For judgments on medical expenses with unpaid principal under $200,000 and personal debts under $50,000, a 2023 change limits renewal to one time, for five years only. If you are carrying an old judgment, the date it was entered and whether it has been renewed are among the first facts we check.
California Bankruptcy Questions We Hear Most
How much does Chapter 7 or Chapter 13 change what creditors can do right away?
The automatic stay takes effect the moment your petition is filed. Creditors must stop calls, lawsuits, wage garnishments, bank levies, repossessions, and foreclosure proceedings. In an emergency, we can often prepare and file a case quickly to stop a sale or levy.
Who qualifies for Chapter 7 in California?
Eligibility runs through the means test, which compares your household income to the California median for a household of your size and then accounts for your actual expenses. If your income is above the limit, Chapter 13 is often the alternative.
Will I lose my house?
Most of our clients keep their homes. In Chapter 7, the question is whether your equity is protected by California’s 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.
Which California exemption system should I choose?
It depends on your assets. Homeowners with equity generally look to the section 704 system and its homestead; renters and people with little equity often do better with the 703.140(b) wildcard. You must commit to one system for the whole case, so the decision is made with a full inventory of your property in hand.
Can I use California’s exemptions if I just moved here?
Generally you need to have lived in California for at least 730 days to use the state’s exemptions. If you moved recently, timing your filing matters, and we will tell you whether waiting makes sense.
What debts can bankruptcy eliminate, and what survives?
Most unsecured debts can be discharged, including credit cards, medical bills, personal loans, payday loans, and deficiency balances after a repossession or foreclosure. Some older income taxes can be eliminated if they meet 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 after one bankruptcy can I file another?
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.
If a creditor already got a judgment against me, can bankruptcy still help?
Often yes. The automatic stay halts garnishments and levies based on the judgment, and depending on the debt and your property, the judgment can be addressed within the case. Whether the judgment is nearing the end of its 10-year enforceability or has been renewed also affects strategy.
My debt is several years old. Do I need to answer the lawsuit?
Yes. A time-barred debt is a defense, not an automatic win. You must raise it in a written answer, or the court can still enter judgment. Written contract debts carry a four-year limit and oral contracts two years, but a signed written acknowledgment can restart the clock, so bring us the paperwork before you respond.
Will my employer find out, and can I be fired?
Your employer is not automatically notified. They may learn of it if they are a creditor, if a garnishment must stop, or if Chapter 13 payments come out of your paycheck. California and federal law prohibit an employer from firing you solely because you filed.
Can a paralegal or document preparer file my case instead of an attorney?
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 raises a problem. In a state with two exemption systems and a division-based court structure, errors can cost you property or your discharge.
Do I have to come into an office to file?
No. We handle cases entirely by phone, email, video, and online chat for clients anywhere in Southern California, and consultations can be 100% virtual.
Serving Bankruptcy Clients Across California’s Southern Counties
We represent clients throughout Los Angeles County, from Los Angeles proper and Hollywood to Santa Monica and the Westside, across the San Fernando Valley communities of Sherman Oaks, Van Nuys, Encino, Woodland Hills, Reseda, Northridge, Granada Hills, North Hollywood, North Hills, Mission Hills, San Fernando, and Sylmar, and north into Santa Clarita, Lancaster, Palmdale, Acton, and the Antelope Valley. South and east, we serve Long Beach, Lakewood, Torrance, Compton, Inglewood, Gardena, Norwalk, Bellflower, Paramount, Cerritos, Cypress, Signal Hill, Huntington Park, Pomona, Claremont, Glendora, and West Covina.
In Orange County, we help 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. In San Bernardino and Riverside Counties and the Inland Empire, we serve Ontario, Rancho Cucamonga, Upland, Fontana, San Bernardino, Chino, Chino Hills, Montclair, Riverside, and the Coachella Valley. Wherever you live in these areas, we confirm the correct bankruptcy division for your zip code and handle the filing.
Talk to a California Bankruptcy Attorney Before the Next Deadline
A garnishment, a sale date, a repossession notice, or a lawsuit response deadline is the right moment to speak with a California bankruptcy attorney. Call Wadhwani & Shanfeld for a free consultation, speak directly with an attorney, and get an honest recommendation on whether Chapter 7, Chapter 13, debt settlement, or another route gives you the best fresh start. You can handle your entire case remotely, and if a deadline is days away, tell us at the start so we can move on it.
