Granada Hills Bankruptcy Lawyer
Granada Hills homeowners and renters alike are getting letters from collection firms, watching a paycheck shrink after a garnishment, or counting the days before a trustee’s sale. Wadhwani & Shanfeld is a consumer bankruptcy and debt relief law firm that handles Chapter 7, Chapter 13, debt settlement, foreclosure defense, wage garnishment, and creditor lawsuits for families across the San Fernando Valley and the rest of Los Angeles County. If you are searching for a Granada Hills bankruptcy lawyer, the first thing to know is that filing a petition triggers an automatic stay, and that stay can stop a garnishment, a bank levy, or a foreclosure sale the moment the case is on file.
Granada Hills sits in a part of the Valley where many households own their homes, and that shapes the bankruptcy conversation. Equity, mortgage arrears, and the question of which of California’s two exemption systems to use matter more here than they do for a renter in a different part of the county. The sections below walk through what a filer in this community actually needs to weigh, from the court that will hear the case to the rules on garnishment, judgments, and repossession.
Why Choose Wadhwani & Shanfeld for Bankruptcy Help in Granada Hills
Wadhwani & Shanfeld has helped more than 30,000 individuals and families get out from under debt, and the firm is led by two Board-Certified Specialists in Consumer Bankruptcy through the American Board of Certification, a credential held by a small fraction of attorneys nationwide. Together the team brings more than 90 years of combined legal experience to Chapter 7 and Chapter 13 cases, debt settlement, foreclosure defense, wage garnishment, IRS tax debt, student loan debt, second mortgage settlements, loan modification, and small business debt. The firm serves clients throughout Los Angeles, Orange, Riverside, and San Bernardino Counties, including Granada Hills and its neighbors across the San Fernando Valley.
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 at 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. That depth matters in a Granada Hills case because the decisions that count most, such as which exemption system protects your home equity, whether Chapter 13 beats Chapter 7, and how to time a filing against a sale date, are judgment calls that benefit from a specialist who has made them thousands of times.
Clients reach an attorney directly from the first call, and the firm moves fast when a garnishment, foreclosure sale, or repossession is days away. Consultations are free, and you can handle everything by phone, email, video, or online chat, with 100% virtual consultations available. Many clients in the Valley appreciate that nobody has to take time off work or drive across town just to find out where they stand.
Common Debt Situations That Lead Granada Hills Residents to File
- Credit Card and Medical Debt: Unsecured balances from cards, hospital bills, and personal loans are the classic Chapter 7 target. If your income passes the means test, these debts can be wiped out in roughly four months.
- Behind on the Mortgage: Chapter 13 lets you catch up missed payments over three to five years while keeping the house, and filing halts a pending foreclosure the moment the petition is submitted.
- Wage Garnishment: A judgment creditor can take a portion of each paycheck. Filing Chapter 7 or Chapter 13 stops most garnishments through the automatic stay.
- Collection Lawsuits: Suits from firms such as Hunt & Henriques, Reese Law Group, and Patenaude & Felix carry a response deadline. Missing it can lead to a default judgment, so the choice between answering, negotiating, or filing needs to be made early.
- Bank Account Levies: A creditor with a judgment can freeze a checking account, though California protects a set amount in deposit accounts automatically without you filing anything, and that protection does not cover levies for wages owed to others, support, or state debts.
- Car Repossession and Deficiency Balances: A repossessed vehicle often leaves a deficiency, which Chapter 7 can discharge, while Chapter 13 can help you keep a car you are behind on.
- 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 arrange payment plans.
- Second Mortgages: A wholly unsecured second mortgage can sometimes be stripped off in Chapter 13, and settlement is another route the firm pursues.
What to Do in the First Days After a Lawsuit, Garnishment, or Sale Notice
Start by gathering paper. Pull together every collection letter, summons, court notice, recent pay stub, last two years of tax returns, mortgage statements, and a list of what you own and owe. The dates on these documents drive everything else. A summons has a response deadline, a foreclosure notice has a sale date, and a repossession notice starts a clock of its own, so find the date before anything else and call an attorney before it passes.
If you have been sued, do not ignore it. The statute of limitations on a written-contract or book-account debt is four years, and on an oral contract it is two, but an expired deadline is a defense you have to raise in a written answer. If you stay silent, the court can still enter judgment. Be careful with small payments or casual acknowledgments on an old debt too. A payment does not revive a debt that is already time-barred, and only a signed written acknowledgment can restart the clock, but you should not guess about that on your own.
On the foreclosure side, the timeline is more forgiving than most people fear. After a notice of default is recorded, a sale cannot take place until at least three months and 20 days later. The notice of sale must be mailed and posted on the property at least 20 days before the sale date. You can reinstate a monetary default until five business days before the sale. If the sale is postponed at least 10 business days, the lender must give you written notice of the new date within 5 business days. Chapter 13 or Chapter 7 can stop a sale entirely, and the firm acts quickly when the date is close.
For a repossessed vehicle, the lender must send at least 15 days’ written notice before selling it (20 if mailed from or to an address outside California). On written request, the redemption period is extended by 10 days. A deficiency claim generally requires that notice go out within 60 days of repossession and contain the required items, and you are entitled to an accounting within 45 days after the sale if you ask.
Granada Hills residents file in the San Fernando Valley Division of the U.S. Bankruptcy Court for the Central District of California, which sits in Woodland Hills. The division is assigned by your street-address zip code, not a P.O. box, and Granada Hills is on the court’s list of communities served by that division. Collection lawsuits are heard in Los Angeles County Superior Court, and the Chatsworth, San Fernando, and Van Nuys courthouses are among those in the Valley. Your attorney will confirm which courthouse applies to your case.
Protecting a Granada Hills Home: California’s Two Exemption Systems
California has opted out of the federal exemptions, so every filer chooses one of two state systems and must stay with that choice for the entire case. You also generally need to have lived in California for at least 730 days to use California’s exemptions. For homeowners, the usual choice is the system built around the homestead exemption, which is the greater of the prior-year countywide median single-family sale price (up to a ceiling) or a statutory floor. That amount is adjusted every year for inflation, and in a county as expensive as Los Angeles it can protect a substantial amount of equity.
The alternative system uses fixed dollar amounts for the residence, a vehicle, tools of the trade, and a wildcard that can be applied to almost any property, including unused residence exemption. Those figures are updated every three years. This second system often suits renters or people with little home equity who want flexibility for cash, savings, or other assets. Picking the wrong one can cost you property, which is why the choice is made with care before filing rather than after.
The practical result is that most clients keep their homes and cars. In Chapter 7, the question is whether your equity falls within the exemption. If you are current on the mortgage and the equity is protected, you keep the house. If you are behind or have more equity than the exemption covers, Chapter 13 lets you keep the property and pay creditors through a plan.
Garnishments, Old Judgments, and Collector Misconduct
An ordinary wage garnishment is capped at the lesser of 20% of weekly disposable earnings or 40% of the amount by which weekly disposable earnings exceed 48 times the minimum hourly wage. Biweekly, semimonthly, and monthly pay use 96, 104, and 208 times the minimum wage instead, and where a local minimum wage is higher than the state’s, the local rate is used. You can also ask the court to exempt the portion of earnings you can show is necessary to support yourself or your family. Your employer cannot fire you because your wages are garnished for a single judgment.
A California money judgment is enforceable for 10 years from entry. A creditor can renew it, but for medical judgments with unpaid principal under $200,000 and personal debt judgments under $50,000, renewal is limited to one time and five years. If you are carrying an old judgment, how much time is left on it may affect whether bankruptcy, negotiation, or waiting is the smarter route.
The Rosenthal Act also protects you from abusive collection. It covers original creditors as well as third-party collectors, allows recovery of actual damages plus $100 to $1,000 for willful and knowing violations, and entitles a prevailing consumer to attorney fees. The window to sue is one year, so do not sit on a harassing-collector problem.
Granada Hills Bankruptcy Questions Answered
How fast can bankruptcy stop a garnishment or foreclosure sale?
The automatic stay takes effect the moment the petition is filed, and creditors must stop collection activity. In an emergency, the firm can often prepare and file a case very quickly to stop a sale or levy.
Will I lose my Granada Hills home if I file?
Most clients keep their homes. In Chapter 7 the question is whether your equity is protected by California’s exemptions and whether you are current on the mortgage. If you are behind or have too much equity, Chapter 13 lets you keep the home and catch up over time.
Which court will my case be filed in?
Granada Hills cases are filed in the San Fernando Valley Division of the U.S. Bankruptcy Court for the Central District of California. The division is determined by your zip code, and your attorney confirms it before filing.
What debts can be erased?
Most unsecured debts can be discharged, including credit cards, medical bills, personal loans, payday loans, and deficiency balances. Some older income taxes qualify under timing rules. Child support, alimony, most student loans, most government fines, and debts from drunk-driving injuries generally cannot be discharged.
How long does bankruptcy stay on my credit report?
A Chapter 7 can remain for up to 10 years from filing, and the bureaus typically remove a Chapter 13 after 7 years. The effect on your score fades well before those dates, and many clients see recovery begin within the first year with responsible credit use.
Can I file again if I have filed before?
Yes, with waiting periods. It is 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, which can be shortened if your plan paid enough to unsecured creditors.
My bank account was frozen. Is any of the money protected?
California automatically protects a set amount in a deposit account from a judgment levy, and the bank must apply that protection before turning money over, with no claim needed. It does not apply to levies for wages owed to others, child or spousal support, or debts owed to the state. Bankruptcy can lift the levy altogether.
If a collector sues me on a very old debt, do I still need to respond?
Yes. The expired limitations period is a defense you must raise in a written answer, and if you do not respond, a court can still enter judgment. Call before your response deadline passes.
Will my employer find out?
Not automatically. They may learn if they are a creditor, if a garnishment must stop, or if Chapter 13 payments are taken from your paycheck. California and federal law bar an employer from firing you solely because you filed.
Can a paralegal or notary file my bankruptcy for me?
A petition preparer can type information into forms but cannot give legal advice, pick your exemptions, or represent you if a trustee or creditor objects. Mistakes can cost you property or your discharge, so representation by a bankruptcy attorney matters.
Do I have to come in to meet with a lawyer?
No. The firm handles cases fully by phone, email, video, and online chat, and 100% virtual consultations are available.
Is bankruptcy always the right answer?
No, and the firm will tell you when it is not. Debt settlement, loan modification, IRS representation, and second mortgage settlement are all alternatives the attorneys handle, so the recommendation is based on what fits your situation.
Wadhwani & Shanfeld’s Bankruptcy Representation Across Granada Hills and the Valley
The firm represents clients in Granada Hills and throughout the San Fernando Valley, including neighbors like Northridge, Mission Hills, North Hills, Sylmar, and San Fernando, along with Reseda, Encino, Woodland Hills, North Hollywood, and Van Nuys. It also serves the Westside, including Hollywood and Santa Monica, and Santa Clarita to the north.
Beyond the Valley, the firm works across Los Angeles County in communities such as Los Angeles, Long Beach, Lakewood, Torrance, Compton, Inglewood, Gardena, Norwalk, Bellflower, Paramount, Cerritos, Cypress, Signal Hill, and Huntington Park. In the east, it serves the Inland Empire and eastern San Gabriel Valley, including Pomona, Chino, Chino Hills, Montclair, Claremont, Glendora, West Covina, Ontario, Rancho Cucamonga, Upland, Fontana, San Bernardino, and Riverside, and reaches the Coachella Valley. It also represents Orange County 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, along with the Antelope Valley communities of Lancaster, Palmdale, and Acton.
Talk to a Granada Hills Bankruptcy Attorney Today
You do not have to wait for a sale date or a levy to make the call. A Granada Hills bankruptcy attorney at Wadhwani & Shanfeld can review your income, property, and debts, explain every option inside and outside of bankruptcy, and tell you honestly which path gives you the best fresh start. Call for a free consultation and speak directly with an attorney, whether you prefer to talk by phone or handle the whole process by video.
