Encino Chapter 7 Bankruptcy Lawyer
A Chapter 7 case filed by an Encino resident is not heard in downtown Los Angeles. It goes to the San Fernando Valley Division of the U.S. Bankruptcy Court for the Central District of California, which sits in nearby Woodland Hills, and the division is chosen by your home zip code rather than by where your creditors are. Wadhwani & Shanfeld is a consumer bankruptcy and debt relief law firm that handles Chapter 7, Chapter 13, debt settlement, and foreclosure defense for people in Encino and across Los Angeles, Orange, Riverside, and San Bernardino Counties.
If you are looking for an Encino Chapter 7 bankruptcy lawyer, the first question is usually whether you can keep your home, your car, and your retirement savings. For most filers the answer is yes, and the reason comes down to California’s exemption rules and the choices made before the petition is signed. Encino homeowners in particular tend to have real equity, which makes the exemption analysis the most important part of the case.
Chapter 7 wipes out qualifying unsecured debt such as credit cards, medical bills, personal loans, payday loans, and deficiency balances left after a repossession. Most cases wrap up in roughly four months, and the moment the petition is filed, creditor calls, lawsuits, and wage garnishments have to stop.
What Happens in an Encino Chapter 7 Case, Start to Finish
Most people find the process less dramatic than they expected. You gather your income records, a list of every creditor, your bank statements, and information about what you own. We use that to run the means test, which compares your household income to the California median for a family your size and then looks at your actual allowable expenses. If you pass, we prepare and file the petition electronically with the bankruptcy court.
Filing triggers the automatic stay, a federal order that halts collection activity right away. A few weeks later you attend a short meeting of creditors, usually conducted by phone or video, where a court-appointed trustee asks you to confirm under oath that your paperwork is accurate. Creditors rarely show up. The trustee’s job is to look for non-exempt assets, which is why the exemption work we do beforehand matters so much. If nothing is out of order, the discharge arrives a few months later, and the debts covered by it are gone for good.
The firm files in every division of the Central District, so wherever your zip code lands, the case is handled the same way. Because we work by phone, email, video, and online chat, you do not have to rearrange your workday around court-adjacent appointments to get started.
Why Choose Wadhwani & Shanfeld for Chapter 7 Filings
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, a distinction held by only a small fraction of attorneys nationally. Together the team brings more than 90 years of combined legal experience to consumer bankruptcy and debt relief, serving clients throughout Los Angeles County, including the San Fernando Valley, along with Orange, Riverside, and San Bernardino Counties.
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 matters in practice: the court’s filing systems are the daily working environment for a Chapter 7 case, and he helped build the way those filings are done. 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. That depth shows up in how exemptions get chosen, how trustee questions get answered, and how problems get spotted before they reach the court.
Clients get direct access to an attorney from the first call, free consultations, and fast action when a garnishment, foreclosure sale, or repossession is days away. We build a plan around your income, your property, and your goals instead of pushing a one-size-fits-all filing, and we will tell you plainly if Chapter 7 is not the right tool. Because the firm also handles Chapter 13, debt settlement, and loan modification, the recommendation reflects what works for your situation, not the only service on offer.
Debts and Situations That Bring Encino Residents to Chapter 7
- Credit Card Balances: Unsecured card debt is the classic Chapter 7 discharge. Encino households with several cards running at high interest often find the minimum payments no longer touch the principal.
- Medical Bills: An illness or surgery can generate bills that insurance does not cover. These are unsecured and generally dischargeable, which can end collection letters and lawsuits tied to them.
- Personal and Payday Loans: Installment loans and payday loans are treated like other unsecured debt and can be eliminated if no special exception applies.
- Repossession Deficiencies: If a car was repossessed and sold for less than you owed, the leftover balance is an unsecured claim that Chapter 7 can discharge.
- Creditor Lawsuits and Judgments: Once a collection firm sues, the case can end in a judgment and then a bank levy or wage garnishment. Filing triggers the automatic stay, and in many cases judgment debts can be dealt with in the bankruptcy.
- Older Income Tax Debt: Some income taxes can be discharged if they meet specific timing rules. We review the dates on each tax year before telling you whether it qualifies.
- Business Debt After a Closure: Owners of small businesses that did not work out often carry personal guarantees on loans and cards, which can be addressed through a personal Chapter 7 filing.
- Debts That Usually Survive: Child support, alimony, most student loans, most government fines, and debts for injuries caused by drunk driving generally cannot be discharged, so we sort these out before you file.
Keeping Your Encino Home, Car, and Savings Under California Exemptions
Chapter 7 is sometimes called liquidation, but most of our clients keep everything they own. The reason is exemptions. California has opted out of the federal exemption scheme, so filers choose between two state systems for the whole case. You cannot mix and match. One system, found in the ordinary state exemption statutes, carries a substantial homestead exemption for homeowners. The other, under Code of Civil Procedure section 703.140(b), offers a smaller residence exemption but a flexible wildcard that can be spread over cash, tools, or other property, and it often works better for renters or people without much home equity.
For homeowners the question is how much equity you have compared to the homestead exemption. That protection is tied to the median single-family home price in your county, subject to a floor and a cap, and the figures adjust annually for inflation. Because Encino home values frequently run high, getting the equity numbers right is where a case can succeed or fail. If your equity fits within the exemption and you are current on the mortgage, you keep the home. If you have more equity than the exemption covers, or you are behind on payments, Chapter 13 may be the better fit, and we will walk through that comparison with you.
To use California’s exemptions you generally must have lived in the state for at least 730 days. If you moved here recently, that detail can change which exemptions apply, so tell us your timeline up front.
What to Do Right Now If You Are Considering Chapter 7 in Encino
Start by gathering paperwork: recent pay stubs, your last couple of years of tax returns, bank statements, a list of every creditor with approximate balances, and anything that shows what you own, such as a vehicle title or mortgage statement. Do not worry about having it perfect for the first call. Speaking with an attorney first lets us tell you what matters and what does not.
If a deadline is bearing down, say so immediately. A lawsuit response date, a wage garnishment on your paycheck, or a bank levy can often be stopped by filing, and we can move quickly when needed. California lets a creditor take only a limited share of your disposable earnings through an ordinary garnishment, and a bank levy is subject to an automatic deposit account exemption, but neither is a reason to wait if your finances are already under pressure. For a foreclosure, remember the timeline: a sale date cannot be set until at least three months and 20 days after the notice of default is recorded, and you can reinstate a missed-payment default until five business days before the sale. A bankruptcy filing halts the sale, but the sooner we know the date, the more options we have.
For repossession, the lender must send at least 15 days’ written notice before selling the car, and you can ask in writing for an extension of the redemption period. If a collection firm has sued you in the Los Angeles County Superior Court, do not ignore the summons. An unanswered suit can end in a default judgment even when the debt is time-barred, because the limitations defense has to be raised in a written answer.
A few mistakes come up repeatedly. Do not pay back one family member or favored creditor right before filing, because the trustee can claw that money back. Do not run up new charges or take cash advances in the months before filing. Do not transfer property to relatives to protect it. And do not hire a document preparer or notary to file for you: a petition preparer can type forms but cannot give legal advice, pick exemptions, or represent you if the trustee raises a problem, and errors can cost you property or your discharge.
Encino Chapter 7 Questions, Answered
Do I qualify for Chapter 7 if I own a home in Encino?
Homeownership does not disqualify you. Eligibility turns on the means test, and keeping the house turns on whether your equity falls within California’s homestead exemption and whether you are current on the mortgage. We calculate both before recommending a filing.
Which bankruptcy court would hear my case?
Your home zip code determines the filing division of the Central District of California. Encino is on the list of communities served by the San Fernando Valley Division, which sits in Woodland Hills. Because the firm files in every division, the assignment never limits who can represent you.
How long does a Chapter 7 case take?
Most cases are completed in roughly four months from filing to discharge. Complications such as a trustee investigating an asset or a creditor objecting to a debt can lengthen that.
Will I have to go to court?
You attend a short meeting of creditors with the trustee, and your attorney attends with you. Appearances before a judge are uncommon in a straightforward case, and we handle the paperwork by phone, email, video, or chat if you prefer not to come in.
What happens to my wage garnishment once I file?
The automatic stay takes effect when the petition is filed and halts the garnishment. Your employer should stop withholding once it is notified. An ordinary judgment garnishment is also limited by law to a portion of your disposable earnings, but bankruptcy stops it entirely.
Can Chapter 7 stop a bank levy?
Yes. Filing triggers the automatic stay and stops most levies on your accounts. California also has an automatic exemption that shields a set amount in your deposit account from certain levies without your having to file a claim, but it does not cover every type of debt, which is another reason to talk to us early.
Can I file Chapter 7 if my debt is too old to be sued on?
A debt on a written contract generally cannot be sued on after four years, and an oral contract after two. Making a payment does not revive a time-barred debt. Whether to include such a debt in a bankruptcy is a strategic question we answer case by case, since you only need discharge for debts that can still be enforced against you.
Is a court judgment against me erased in Chapter 7?
Judgments based on dischargeable debts can generally be addressed in the case, and collection through garnishment or levy stops when you file. A money judgment in California is enforceable for 10 years and can be renewed, so a judgment sitting in the background is worth resolving rather than waiting out.
Does my employer find out I filed?
Not automatically. Your employer may learn if it is one of your creditors or if a garnishment has to be stopped. California law bars an employer from firing you solely because you filed, and a separate rule protects employees whose wages are garnished on a single judgment.
If I filed before, can I file Chapter 7 again?
Yes, with waiting periods. You must wait eight years between Chapter 7 filings, and generally six years after a Chapter 13, though that can be shortened if your Chapter 13 plan paid enough to unsecured creditors. We confirm your dates before filing.
Will a collector who broke the rules owe me money?
Possibly. California’s Rosenthal Act covers original creditors as well as collection agencies, and a consumer can recover actual damages, an additional amount if the violation was willful and knowing, and attorney fees. Suit must be brought within one year, so tell us about harassing calls or false statements right away.
Serving Encino and Nearby Communities Throughout Southern California
Our Encino Chapter 7 work reaches across the San Fernando Valley. We represent clients from Encino itself through Woodland Hills, Reseda, Northridge, Granada Hills, North Hollywood, North Hills, Mission Hills, San Fernando, Sylmar, Van Nuys, and Sherman Oaks, and we also help people on the Westside and in Hollywood and Santa Monica. Many of these communities are served by the same San Fernando Valley Division of the bankruptcy court, which makes the filing process familiar to us.
Beyond the Valley, we serve Los Angeles County communities including Los Angeles, Santa Clarita, Long Beach, Lakewood, Torrance, Compton, Inglewood, Gardena, Norwalk, Bellflower, Paramount, Cerritos, Signal Hill, Huntington Park, Pomona, Claremont, Glendora, West Covina, Lancaster, Palmdale, and Acton in the Antelope Valley. In Orange County we assist residents of 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 the Inland Empire we serve Ontario, Rancho Cucamonga, Upland, Fontana, San Bernardino, Chino, Chino Hills, Montclair, Riverside, and the Coachella Valley.
Talk to an Encino Chapter 7 Bankruptcy Attorney Today
If collection calls, a garnishment, or a lawsuit are driving your decisions, a conversation with an Encino Chapter 7 bankruptcy attorney can clarify where you stand. Call Wadhwani & Shanfeld for a free consultation and speak directly with an attorney about whether Chapter 7, Chapter 13, or a settlement outside of court gives you the best fresh start. Consultations are available 100% virtually, so you can start the conversation today from home.
