Encino Debt Relief Lawyer
Wadhwani & Shanfeld works with Encino residents, homeowners, and small business owners who are buried under credit card balances, collection lawsuits, wage garnishments, mortgage defaults, and tax debt, and who need a realistic way out. As a consumer bankruptcy and debt relief law firm serving Encino, the broader San Fernando Valley, and communities across Los Angeles, Orange, Riverside, and San Bernardino Counties, we handle Chapter 7, Chapter 13, debt settlement, foreclosure defense, and creditor litigation under one roof.
A good Encino debt relief lawyer does something a debt settlement mill or a form-filling service cannot: weighs every route against the others before recommending one. For some Encino households, a Chapter 7 discharge ends the problem in a few months. For others, especially homeowners with real equity in this part of the Valley, Chapter 13 or a negotiated settlement protects more. And sometimes the best answer is a defense that costs nothing, such as an expired limitations period on an old account.
That last point matters more than most people realize. The deadline to sue on a written contract debt in California is four years, and two years for an oral agreement. But an expired deadline only helps you if someone raises it. If you are sued on a time-barred debt and do not file a written answer, the court can still enter judgment against you.
Why Choose Wadhwani & Shanfeld for Debt Relief in Encino
Wadhwani & Shanfeld has helped more than 30,000 individuals and families resolve debt, and our Encino debt relief attorneys serve clients throughout Los Angeles County and the surrounding Southern California counties. 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 across the team. Clients get direct access to an attorney from the first call, and cases can be handled entirely by phone, email, video, and online chat, with 100% virtual consultations available. The first consultation is free.
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. 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.
Those credentials matter in debt relief because the decisions that make or break a case are technical. Which of California’s two exemption systems to elect, whether a homestead claim covers your equity, whether a creditor’s repossession notice was defective, whether a garnishment can be reduced: these are judgment calls, and the firm files in every division of the U.S. Bankruptcy Court for the Central District of California. When a garnishment, foreclosure sale, or repossession is days away, the firm acts fast.
Debt Problems We Resolve for Encino Clients
- Credit Card and Personal Loan Debt: Unsecured balances, including medical bills and payday loans, are generally dischargeable in Chapter 7 if you pass the means test, or can be reduced through direct negotiation when bankruptcy is not the right fit.
- Collection Lawsuits and Judgments: A summons from a creditor’s law firm starts a response clock. We evaluate whether to answer, raise a limitations defense, negotiate, or file bankruptcy. A California money judgment stays enforceable for 10 years and can be renewed, though recent rules limit renewal for smaller medical and personal debt judgments.
- Wage Garnishment: On an ordinary judgment, the garnishment is capped by a formula tied to your disposable earnings and the minimum wage. A bankruptcy filing stops most garnishments immediately, and in some cases we can claim an exemption for earnings your family needs.
- Bank Account Levies: California automatically shields a set amount in your deposit account from a levy, and the bank must apply it without you filing anything. Levies for child support, spousal support, wages owed to another, or debts owed to the state are treated differently.
- Foreclosure and Second Mortgages: Encino homes often carry significant equity and large loans. Chapter 13 can stop a sale and spread missed payments over time, and a wholly unsecured second mortgage can sometimes be stripped off. We also handle loan modification and second mortgage settlements.
- Vehicle Repossession: California requires written notice before a repossessed car is sold, and a lender who misses the notice requirements may lose the right to collect a deficiency. We review the paperwork before you pay anything.
- IRS Tax Debt: Levies, payment arrangements, and in some cases discharge of older income tax debt that meets the timing rules.
- Student Loan and Small Business Debt: Student loans are rarely discharged but can be managed with the right strategy; business owners may need small business bankruptcy or negotiated solutions for business debts.
What to Do Now If Creditors Are Closing In on You
Start by sorting what you have actually received. A collection letter is not a lawsuit; a summons and complaint is. If you have been served, the deadline to respond is short, and ignoring it invites a default judgment. Bring the papers to us before the deadline passes, even if you are unsure the debt is yours or whether it is too old to collect.
Collect your recent pay stubs, a list of every creditor, your mortgage and car loan statements, your last two years of tax returns, and any notice that mentions a date: a sale date, a hearing date, a levy notice. Dates drive the strategy. In a California foreclosure, a sale cannot occur until at least 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 missed monetary default can be reinstated until five business days before the sale. Filing bankruptcy halts a sale, but waiting until the last day leaves little room for preparation.
Do not make a small payment or sign anything to “show good faith” on an old account until you have spoken with an attorney. A payment cannot revive a debt that is already time-barred, but a signed written acknowledgment can restart the clock on one that is not yet expired, and collectors know it. Also avoid moving money or transferring property to a relative; trustees scrutinize those transfers.
If bankruptcy turns out to be the answer, Encino falls within the San Fernando Valley Division of the U.S. Bankruptcy Court for the Central District of California, which sits in Woodland Hills. Your street address, not a P.O. box, determines the division. Collection lawsuits are filed in the Los Angeles County Superior Court, and the courthouse is generally determined by where the case is filed, so we check the summons first. After filing, you will attend a meeting of creditors, usually by video or phone, and we prepare you for it beforehand.
Choosing Between Chapter 7, Chapter 13, and Settlement
The right path depends on income, property, and the kind of debt. Chapter 7 wipes out qualifying unsecured debt and typically wraps up in around four months, but you must pass the means test, which compares your household income to the California median for your household size. Chapter 13 suits people with steady income who are behind on a mortgage or car loan, owe priority taxes or support arrears, or have equity beyond what exemptions cover; the plan runs three to five years and binds creditors once confirmed.
Exemptions are where Encino cases are won or lost. California has opted out of the federal exemptions, so you choose one of two state systems for the entire case, and you must have lived in California long enough to use them. One system carries a large homestead protection that is tied to county home prices and adjusts for inflation, which is why it often favors Valley homeowners. The other offers a smaller residence exemption but a flexible wildcard that can work better for renters. Picking wrong can expose equity, a vehicle, or business tools that the other system would have protected.
Debt settlement is the non-court alternative: we negotiate directly with the creditor to accept less than the full balance. It works best when you have a lump sum available or a lawsuit is pending and the creditor prefers certainty. We will tell you plainly when bankruptcy is the better tool, and when it is not.
Debt Relief Questions Encino Residents Ask
How soon can a bankruptcy filing stop a garnishment or bank levy?
The automatic stay takes effect the moment the petition is filed. Creditors must stop most collection activity, including wage garnishments, levies, and lawsuits. In emergencies, we can often prepare and file quickly to stop a sale or levy.
Will I lose my Encino home if I file bankruptcy?
Most of our clients keep their homes. In Chapter 7, the question is whether your equity is covered by California’s homestead exemption and whether you are current on the mortgage. If you are behind or have more equity than the exemption covers, Chapter 13 lets you keep the home and catch up over time.
What debts can bankruptcy eliminate?
Credit cards, medical bills, personal loans, payday loans, and deficiency balances after a repossession or foreclosure are generally dischargeable, along with some older income taxes that meet the timing rules. Child support, alimony, most student loans, and most government fines generally survive.
Is debt settlement better than bankruptcy?
Sometimes. Settlement can avoid a bankruptcy filing when the debt is manageable and you can fund a settlement. It does not stop a lawsuit by itself, and the creditor can refuse. Because we handle both, the recommendation is based on your numbers, not on the only service we offer.
How long can a creditor sue me on an old debt?
For debts based on a written contract, the window is four years; for oral agreements, two. Book account claims also carry four years. The expired deadline is a defense you must raise in a written answer, so do not ignore a summons because the debt feels old.
What if a collector already has a judgment against me?
A California money judgment is enforceable for 10 years and can be renewed by application, though rules adopted in recent years limit renewal to one five-year extension for smaller medical and personal debt judgments. Bankruptcy can often eliminate the underlying debt and stop enforcement.
Can my employer fire me for a wage garnishment?
California law bars an employer from firing you because your wages are garnished for a single judgment. Employers also cannot fire you solely because you filed for bankruptcy.
Is the money in my checking account safe from a levy?
A set amount in your deposit account is automatically exempt per judgment debtor, and the bank applies that protection without a claim from you. It does not apply to levies for child or spousal support, wages owed to another person, or debts owed to the state, and anything above the amount is at risk.
My car was repossessed. Do I still owe money?
Possibly. The lender must send written notice of its intent to sell the car, generally at least 15 days before disposal, and you can only be held liable for a deficiency if the notice was given within 60 days of repossession and contained the required items. On written request, the redemption period is extended by 10 days, and you can request an accounting after the sale.
Do I have any recourse if a collector harasses me?
California’s Rosenthal Act covers original creditors as well as third-party collectors. A consumer can recover actual damages, plus an additional amount of $100 to $1,000 if the violation was willful and knowing, and a prevailing consumer can recover attorney fees. The deadline to sue is one year, and a collector may escape liability by correcting a curable violation within 15 days of discovering it.
Do I have to come into an office to file?
No. We handle cases fully by phone, email, video, and online chat, and virtual consultations are available for anyone in Southern California.
Can a paralegal or document preparer handle my filing instead?
A petition preparer can type your information into the forms but cannot give legal advice, choose exemptions, or represent you if a trustee or creditor raises a problem. Errors can cost you property or your discharge.
Debt Relief Representation Across Encino and the San Fernando Valley
We represent clients throughout Encino and the surrounding Valley, from Tarzana and Woodland Hills to Sherman Oaks, Van Nuys, Reseda, and Northridge. Families in Granada Hills, Mission Hills, North Hills, North Hollywood, San Fernando, and Sylmar come to us for the same reasons: lawsuits, garnishments, and foreclosure pressure that need a straight answer. We also serve Hollywood, Santa Monica, and the Westside.
Beyond the Valley, our debt relief work extends across Los Angeles County, including Santa Clarita, Long Beach, Lakewood, Torrance, Compton, Inglewood, Lancaster, Palmdale, and the Antelope Valley community of Acton. We serve 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, and Riverside, as well as the Coachella Valley. In Orange County, we represent 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, and in communities such as Norwalk, Bellflower, Paramount, Gardena, Cerritos, Cypress, Signal Hill, and Huntington Park.
Talk to an Encino Debt Relief Attorney Today
You do not have to sort out which creditor to pay, whether a lawsuit is defensible, or whether bankruptcy is right on your own. Call Wadhwani & Shanfeld for a free consultation and speak directly with an Encino debt relief attorney who will walk through your options inside and outside of court and tell you honestly which path gives you the strongest fresh start. If a hearing, sale date, or response deadline is close, say so on the first call and we will move accordingly.
