Granada Hills Credit Card Debt Lawyer
The goal in a credit card debt case is simple to state: stop the calls, stop the lawsuit, and end up owing an amount you can actually live with, or nothing at all. Wadhwani & Shanfeld is a consumer bankruptcy and debt relief law firm that handles Chapter 7, Chapter 13, and debt settlement for people in Granada Hills and across the San Fernando Valley, Los Angeles County, and the rest of Southern California.
Finding the right Granada Hills credit card debt lawyer starts with knowing which stage your debt has reached. A balance that is a few months behind calls for different decisions than an account that has been sold to a debt buyer, and both differ from a case where a summons has already been served or a judgment entered. The choices you make in the first few weeks, including whether to answer a lawsuit, whether to pay anything, and whether a filing makes sense, tend to shape everything that follows.
Why Choose Wadhwani & Shanfeld for Credit Card Debt Relief
The firm is led by two Board-Certified Specialists in Consumer Bankruptcy through the American Board of Certification, a credential that only a small fraction of attorneys in the country hold. Between them, the firm’s lawyers bring more than 90 years of combined legal experience to clients in Los Angeles, Orange, Riverside, and San Bernardino Counties.
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. For a credit card debt client, that depth matters because the right answer is rarely automatic. It depends on income, property, the age of the debt, and whether a creditor has already sued.
Clients get direct access to an attorney from the first call, a free consultation, and the option of handling the entire case by phone, email, video, or online chat, including 100% virtual consultations. When a garnishment, levy, or repossession is days away, the firm acts quickly. The firm also handles the alternatives to bankruptcy, so the recommendation you receive reflects what fits your situation rather than the only tool a firm happens to offer.
Credit Card Debt Situations We See in Granada Hills
- Revolving balances that outgrew income: Job loss, reduced hours, a medical event, or simply prices rising faster than pay can push minimum payments past what a household can carry. Chapter 7 can eliminate these unsecured balances if you pass the means test, which compares your household income to the California median for your household size and then considers your actual expenses.
- Accounts sold to debt buyers: Charged-off cards are often resold, and the new owner may sue in its own name. Whether the claim is still timely and whether the buyer can document the debt are questions worth answering before you respond.
- Lawsuits already filed: Collection firms that sue on credit cards deadline-track hard. A missed response deadline can lead to a default judgment, so a served summons should be treated as urgent.
- Judgments leading to garnishment or levy: Once a creditor holds a judgment, it can pursue wage garnishment and bank levies. Filing bankruptcy triggers the automatic stay, which halts most of that activity when the case is filed.
- High income with heavy debt: If your income is above the Chapter 7 limits, Chapter 13 reorganizes your debts into one monthly payment over three to five years, with creditors bound once the court confirms the plan.
- Credit card debt alongside a mortgage problem: Households juggling cards and a delinquent mortgage often do better with Chapter 13, which can stop a foreclosure sale while you catch up over time.
- Debts you can settle without filing: When assets are modest and the balances manageable, direct negotiation can resolve a card for less than the full amount owed, avoiding a court filing altogether.
- Business and personal debt mixed together: Small business owners who put expenses on personal cards may need a plan that addresses both sides of the ledger.
What to Do Right Now If Credit Card Debt Is Closing In
Start by sorting your paperwork by urgency. Anything that looks like a court document, a summons, a complaint, a notice of judgment, or a levy or garnishment notice, comes first, because those carry deadlines. Collection letters and calls matter, but they do not by themselves require a court response. If you have been sued, the clock for filing a written answer is short, and failing to answer can let the court enter judgment against you even when you have a good defense.
Do not make a payment or sign anything to a collector until you know where the debt stands. Under California law, a payment cannot revive a debt that is already time-barred, and only a signed written acknowledgment restarts the limitations period. Still, a careless partial payment or a signed agreement can create new complications, and a time-barred debt is a defense you must actually raise in a written answer. The general window to sue on a written contract, which covers most credit card agreements, is four years, while oral agreements carry two years. Whether that window has closed on your account depends on facts a lawyer should check, such as the date of your last payment and the date of default.
Collect your recent statements, any collection letters, the summons if you have one, your last couple of pay stubs, and a list of your bank accounts. Cases from Granada Hills fall in the San Fernando Valley, and the bankruptcy court that serves communities such as Granada Hills, Northridge, Mission Hills, and Sylmar is 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 determined by the zip code of your residence, and your attorney confirms it before filing. Civil collection suits are a separate track in the Los Angeles County Superior Court, which handles them in its network of local courthouses, including the San Fernando courthouse and the Van Nuys courthouse.
Finally, talk to a Granada Hills credit card debt attorney before choosing a path. Many people wait until a levy hits their bank account or a garnishment reaches their paycheck, when the same call a few weeks earlier would have kept more options open.
How the Automatic Stay and California Exemptions Change the Math
The moment a Chapter 7 or Chapter 13 petition is filed, the automatic stay takes effect. Lawsuits, judgments, bank levies, garnishments, and repossessions generally must stop. For someone whose credit card issuer has already won a judgment, that is often the most immediate relief a filing provides.
The second question is what you can keep. Although Chapter 7 is sometimes called liquidation, the large majority of the firm’s clients keep everything they own. California has opted out of the federal exemption scheme, so filers must choose between two state systems, and the choice applies to the entire case. One system, built on the homestead provisions of the Code of Civil Procedure, protects significant home equity. The other, found in section 703.140(b), offers a flexible wildcard that often suits renters better. To use California’s exemptions you generally must have lived in the state for at least 730 days. Choosing between the systems is one of the most consequential decisions in a case, and it should be made with an attorney who has run the numbers on your specific property.
If you are not yet in bankruptcy but a judgment exists, other protections apply. Wage garnishment on an ordinary judgment is limited to the lesser of 20 percent of weekly disposable earnings or a figure tied to the minimum wage, and you can ask the court to exempt more of your earnings if they are needed to support you or your family. Your employer cannot fire you because your wages are garnished for a single judgment. Bank levies also come with a built-in protection: a portion of your deposit account balance is exempt automatically, without you filing a claim, though that protection does not cover every type of levy. A judgment is also not permanent. It is enforceable for 10 years, and renewal is more limited for consumer and medical judgments than it used to be.
Bankruptcy, Settlement, or Fighting the Suit: Choosing the Right Tool
Each route solves a different problem. Chapter 7 is the fastest route to wiping out qualifying unsecured debt and most cases wrap up in roughly four months, but it requires passing the means test. Chapter 13 suits people with steady income who need structure, who want to keep a home or car they are behind on, or who carry debts Chapter 7 cannot reach. Debt settlement avoids the credit and public-record footprint of bankruptcy but only works when the creditor is willing to negotiate and you have a realistic way to fund the deal. Defending the lawsuit can be the right move when the debt is time-barred, the plaintiff cannot prove it owns the account, or the amount is wrong.
California also gives consumers a tool against abusive collection tactics. The Rosenthal Act covers original creditors as well as third-party collectors, and a consumer who proves a violation can recover actual damages, with an additional amount between $100 and $1,000 possible for willful and knowing violations, plus reasonable attorney fees. The deadline to bring such a claim is one year, which is short enough that a collection problem should be raised early.
Questions Granada Hills Residents Ask About Credit Card Debt
Can bankruptcy eliminate all of my credit card debt?
Chapter 7 can discharge most unsecured credit card balances. Exceptions exist, such as debts incurred through fraud, so a lawyer should review recent charges and cash advances. Chapter 13 does not wipe the debt out in the same way, but it can reduce what you pay over the life of the plan.
How long can a credit card company wait before suing me in California?
For a written contract, which covers most card agreements, the window is four years. Oral agreements carry two years. The clock runs from default, and the deadline is a defense you must raise in your written answer; the court will not apply it automatically.
If I make a small payment, does that restart the clock?
A payment on a debt that is already time-barred does not revive it, and only a signed written acknowledgment can restart the period. That said, talking to a collector or paying without advice can still create problems, so get guidance first.
How fast can bankruptcy stop a lawsuit or garnishment?
The automatic stay begins the moment the petition is filed. In urgent situations, we can often prepare and file a case quickly to stop a levy or garnishment that is about to take effect.
Will I lose my home or car if I file for bankruptcy over credit cards?
Most clients keep their property. In Chapter 7, the question is whether your equity is protected by a California exemption. If you have more equity than the exemption covers, or you are behind on a secured loan, Chapter 13 may let you keep the property and catch up over time.
Can a collector garnish my wages without a lawsuit?
A private credit card creditor generally needs a judgment first. After a judgment, the amount that can be taken from each paycheck is capped, and you can ask the court to exempt additional earnings you need to support yourself or your family.
What if a debt buyer sues me over a card I do not recognize?
Do not ignore the summons. Debt buyers must be able to show they own the account and prove the balance. Responding on time preserves your ability to challenge their documentation and raise any timing defense.
Is a judgment against me permanent?
No. A California money judgment is enforceable for 10 years from entry, and a creditor must file to renew it. For personal debt judgments under a set principal threshold, renewal is limited to one time for five years. Bankruptcy can also address a judgment that has already been entered.
Will my employer find out if I file?
Not automatically. They might learn if they are a creditor, if a garnishment must stop, or if Chapter 13 payments come out of your paycheck. California and federal law bar an employer from firing you solely because you filed.
Is it worth hiring a lawyer for a smaller credit card balance?
Often yes. A modest balance can still carry a lawsuit, a garnishment, and a judgment that lasts a decade. A short consultation can tell you whether to defend, settle, or do nothing at all, and the first consultation is free.
Can I handle this without coming to an office?
Yes. We handle cases fully by phone, email, video, and online chat, and virtual consultations are available for clients anywhere in Southern California.
How long will a bankruptcy affect my credit?
A Chapter 7 can remain on your credit report for up to 10 years from filing, and Chapter 13 is typically removed after 7 years. The impact on your score fades well before then, and many clients begin rebuilding within the first year by using a secured card responsibly and paying every bill on time.
Serving Granada Hills Credit Card Debt Clients Across Southern California
Our work for Granada Hills clients extends across the neighborhoods of the San Fernando Valley, including Northridge, Mission Hills, North Hills, Sylmar, San Fernando, Reseda, Encino, Woodland Hills, North Hollywood, Van Nuys, and Sherman Oaks. We also represent clients on the Westside and in Hollywood and Santa Monica, and throughout Los Angeles County in communities like Santa Clarita, Los Angeles, Long Beach, Lakewood, Torrance, Compton, and Inglewood, as well as the Antelope Valley cities of Lancaster and Palmdale and the community of Acton.
Beyond Los Angeles County, the firm serves the Inland Empire, including Ontario, Rancho Cucamonga, Upland, Fontana, San Bernardino, Pomona, Chino, Chino Hills, Montclair, Claremont, Glendora, West Covina, Riverside, and the Coachella Valley. 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, along with the southeast Los Angeles County communities of Norwalk, Bellflower, Paramount, Gardena, Cerritos, Cypress, Signal Hill, and Huntington Park.
Talk to a Granada Hills Credit Card Debt Attorney Today
You do not need to wait for a judgment or a garnishment to get answers. A Granada Hills credit card debt attorney at Wadhwani & Shanfeld can review your balances, your income, your property, and any court papers you have received, then explain every option inside and outside of bankruptcy and tell you honestly which one gives you the best path forward. Call today for a free consultation and speak directly with an attorney, in person or entirely by phone or video.
