Encino Lawsuits & Judgments Lawyer
A debt lawsuit filed against an Encino resident lands in Los Angeles County Superior Court, and the clock on your written response starts the day you are served. Miss it, and the collector can ask for a default judgment without anyone ever hearing your side. If you need an Encino lawsuits and judgments lawyer, Wadhwani & Shanfeld is a consumer bankruptcy and debt relief law firm that represents people in Encino and across the San Fernando Valley, Los Angeles County, Orange County, Riverside County, and San Bernardino County who are being sued by creditors or who already have a judgment entered against them.
The questions people bring us are practical ones. Can the suit be answered, negotiated, or stopped outright? Is the debt too old to sue on? Can the creditor take part of a paycheck or freeze a bank account? Does a judgment last forever? The answers depend on the type of debt, the dates involved, and what you own, so a lawsuit or judgment deserves a close look before you decide anything.
Why Choose Wadhwani & Shanfeld for Creditor Lawsuits and Judgment Problems
Wadhwani & Shanfeld has helped more than 30,000 individuals and families get out from under debt. The firm is led by two Board-Certified Specialists in Consumer Bankruptcy through the American Board of Certification, with more than 90 years of combined legal experience. We handle Chapter 7, Chapter 13, debt settlement, wage garnishment, creditor lawsuits, foreclosure defense, IRS tax debt, credit card debt, and personal loans for clients throughout Southern California, and you can speak directly with an attorney from your first call.
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. 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. The firm files in every division of the U.S. Bankruptcy Court for the Central District of California, which matters here because Encino cases are heard in the San Fernando Valley Division in Woodland Hills.
That experience matters in a lawsuit because the best response is not always the same. Sometimes the right move is a written answer raising a defense. Sometimes it is a negotiated settlement. Sometimes a bankruptcy filing ends the suit and wipes out the debt. Because we handle both bankruptcy and its alternatives, our recommendation is based on what works for your situation. When a garnishment, levy, or sale date is days away, we act fast. You can meet with us by phone, email, video, or online chat, and virtual consultations are available at no cost.
Situations That Bring Encino Residents Into Debt Litigation
- Credit Card Collection Suits: Banks and debt buyers sue on unpaid card balances, often after the account has been sold more than once. Many of these suits are filed by firms that represent creditors across Southern California, and the plaintiff may have trouble proving it actually owns the account.
- Medical Bill Judgments: Unpaid hospital and provider balances become lawsuits when accounts go to collections. These judgments can still be enforced against wages and bank accounts, and bankruptcy can usually discharge the underlying debt.
- Personal Loan and Payday Loan Suits: Installment lenders and online lenders sue on defaulted loans, sometimes adding interest and fees that deserve scrutiny before any settlement is signed.
- Repossession Deficiency Claims: After a car is taken and sold, the lender may sue for the gap. A deficiency claim only works if the lender followed the notice rules, which gives us something concrete to examine.
- Old Debts Revived by Collectors: Written contract debt generally cannot be sued on after four years, and oral contract debt after two. Collectors still file on stale accounts, hoping the borrower will not respond.
- Existing Judgments Hitting Paychecks or Accounts: A judgment lets the creditor garnish wages, levy bank accounts, and record liens, so the focus shifts from defending the claim to limiting the damage.
- Second Mortgage and Mortgage-Related Suits: Lenders holding junior liens sometimes sue after a foreclosure or a short sale, and some wholly unsecured second mortgages can be addressed in Chapter 13.
- Business Debt Claims: Small business owners are sued on loans, leases, and vendor accounts, sometimes with personal guarantees that put personal assets at stake.
What to Do After You Are Served With a Debt Lawsuit in Encino
Start with the paperwork. Read the summons to find your response deadline, and keep the envelope and any proof of how and when you were served. Do not ignore it. In California, an expired limitations period is a defense, but it is one you must raise in a written answer. If you stay silent, the court can still enter judgment even on a debt that was too old to sue on. A phone call to the collector does not count as a response.
Next, gather what the creditor will have to prove: the original agreement, statements, the date of your last payment, and any letters from collectors. The date matters. A payment on a debt that is already time-barred does not bring it back to life, and only a signed written acknowledgment can restart the clock. Be careful about what you sign or say to a collector before you know where you stand.
Most Encino residents sued in superior court will be dealing with the Los Angeles County Superior Court, which is divided into twelve geographic districts. Which courthouse hears your case depends on the plaintiff’s filing and the amount claimed, so the summons itself is the best guide. If bankruptcy is the right answer, your filing division follows the zip code of your home, and Encino falls within the San Fernando Valley Division of the U.S. Bankruptcy Court for the Central District of California. Once a petition is filed, the automatic stay halts the lawsuit, wage garnishments, bank levies, and collection calls.
Common mistakes are easy to avoid once you know them: letting the response deadline pass, making a small “good faith” payment that starts a new fight over the limitations period, agreeing to a stipulated judgment without understanding the payment terms, and waiting until a garnishment hits before calling anyone. If your judgment is already entered, call us before your employer or bank receives a levy, because some of your options are time-sensitive.
How Judgments Are Enforced and What Limits Them
A judgment in California generally remains enforceable for ten years from the date it was entered, and the creditor can ask the court to renew it. Since the start of 2023, renewal is limited to one time, for five years only, for medical expense judgments where the unpaid principal is under $200,000 and personal debt judgments where it is under $50,000. When enforceability ends, enforcement stops and liens created by that enforcement are extinguished, so the expiration date on a judgment is worth knowing.
Wage garnishment on an ordinary judgment is capped. The creditor can take the lesser of 20 percent of your weekly disposable earnings or 40 percent of the amount by which those earnings exceed 48 times the minimum hourly wage. Biweekly, semimonthly, and monthly pay use 96, 104, and 208 times the minimum wage in place of 48, and a higher local minimum wage is used when it applies. You can also ask the court to exempt the portion of your earnings that is proven necessary to support you or your family. Your employer cannot fire you because wages are garnished for a single judgment.
Bank levies work differently. California automatically protects a set amount in your deposit accounts per judgment debtor, and the bank must apply that protection before turning money over, without you filing a claim. It does not apply to levies for wages owed to someone else, child or spousal support, or debts owed to the state. Anything above that amount may be exempt only if you act and show why.
Filing Chapter 7 or Chapter 13 stops most garnishments and levies the moment the case is filed. California does not use the federal exemptions; filers choose between two state systems, one with a homestead exemption tied to local home values and another with a flexible wildcard better suited to renters. Because you must choose one system for the whole case, the choice affects whether a judgment lien on your home can be avoided and what property stays protected. Residency rules apply as well, since you generally must have lived in California for 730 days to use California’s exemptions.
Collector Misconduct and Your Own Claims
Sometimes the collector is the one with a problem. California’s Rosenthal Fair Debt Collection Practices Act applies to original creditors as well as third-party collectors, unlike the federal law. A consumer can recover actual damages, and a court can add $100 to $1,000 when the collector acted willfully and knowingly. A prevailing consumer can also recover reasonable attorney fees. The window is short, though: a Rosenthal claim must be filed within one year, and a collector can avoid liability by correcting a curable violation within 15 days of learning of it. If a collector threatened you, contacted you in ways it should not have, or misstated the debt, bring those records with you when we talk.
Questions Encino Residents Ask About Lawsuits and Judgments
How long do I have to respond to a debt lawsuit?
The summons states your deadline, and you must respond in writing to the court by that date. A phone call to the plaintiff or its lawyer does not stop the clock. If you are close to the deadline, contact us right away so we can see whether to answer, negotiate, or file bankruptcy.
Can a creditor sue me for a debt that is several years old?
They can file, but the suit may be barred. Written contracts and book account claims carry a four-year limit, and oral contracts two years. The expired deadline is a defense you have to raise in your written answer, or the court can still enter judgment.
Will a small payment on an old debt restart the clock?
Not on a debt that is already time-barred. A payment cannot revive it, and only a signed written acknowledgment can restart the period. Still, avoid making payments or signing anything until you know the debt’s age.
How much of my paycheck can a creditor take with a judgment?
On an ordinary judgment, the lesser of 20 percent of weekly disposable earnings or 40 percent of what those earnings exceed 48 times the minimum hourly wage, with adjusted multiples for longer pay periods. You can ask the court to protect more if the money is necessary to support your family.
Can they empty my bank account?
A levy can freeze and take funds, but the bank must automatically protect a set amount per judgment debtor before releasing money. That protection does not cover levies for wages owed to others, support, or debts owed to the state.
Does bankruptcy stop a lawsuit that is already underway?
Yes. The automatic stay takes effect the moment the petition is filed, halting the lawsuit, garnishments, bank levies, and repossessions. Most credit card, medical, and personal loan debt can then be discharged.
Can bankruptcy get rid of a judgment already entered against me?
Often, yes, if the underlying debt is dischargeable. Judgment liens on your home may also be removable depending on your equity and which exemption system you choose. Judgments for support obligations and certain other debts generally survive.
How long does a California judgment last, and can it be renewed?
Ten years from entry. A creditor can renew, but for medical judgments under $200,000 and personal debt judgments under $50,000, renewal is limited to one time for five years.
Can my employer fire me over a garnishment?
Not because of a garnishment on a single judgment. California law prohibits it. Your employer will have to withhold the money, but cannot terminate you on that basis alone.
I was sued by a collector that behaved badly. Do I have a claim against it?
Possibly. The Rosenthal Act covers abusive collection conduct, allows damages and attorney fees, and has a one-year filing window. Keep letters, voicemails, and call logs.
Do I have to come into an office to deal with this?
No. We handle cases entirely by phone, email, video, and online chat, and offer free virtual consultations, which helps when a response deadline is close.
Is it worth hiring a lawyer for a smaller debt lawsuit?
Often it is. A default judgment on even a modest debt opens the door to garnishment and levies for ten years. A free consultation can tell you whether an answer, a settlement, or bankruptcy fits best.
Serving Encino and Surrounding Los Angeles County Communities Facing Creditor Lawsuits
We represent Encino clients and neighbors throughout the San Fernando Valley, including Sherman Oaks, Tarzana, Woodland Hills, Reseda, Northridge, Granada Hills, Van Nuys, North Hollywood, North Hills, Mission Hills, San Fernando, and Sylmar. Across the Santa Monica Mountains, we also help people in Hollywood, Santa Monica, and the Westside. Our reach extends through Los Angeles County to Santa Clarita, Lancaster, Palmdale, Acton, and the Antelope Valley, and down to Long Beach, Lakewood, Torrance, Compton, Inglewood, Gardena, and Huntington Park.
In neighboring counties we serve Anaheim, Santa Ana, Garden Grove, Fullerton, Huntington Beach, and Newport Beach in Orange County, and Ontario, Rancho Cucamonga, Fontana, Pomona, Riverside, and the Coachella Valley in the Inland Empire. Wherever a creditor has sued you, and wherever a judgment is reaching your wages or accounts, our debt relief team can respond.
Talk to an Encino Lawsuits and Judgments Attorney Today
If you have been served, or a judgment is already costing you part of every paycheck, call Wadhwani & Shanfeld and speak directly with an attorney about your options. We will review the case, check the dates, and tell you honestly whether to answer, negotiate, or file bankruptcy. Reach out before your response deadline passes, and let our Encino lawsuits and judgments attorney team work out the path that fits your situation.
