Inglewood Chapter 7 Bankruptcy Lawyer
When a paycheck is being garnished or a bank account has been frozen over a judgment, the question for an Inglewood household is usually how fast it can stop. 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 people in Inglewood and across Los Angeles County and Southern California.
An Inglewood Chapter 7 bankruptcy lawyer spends most of the first consultation on two questions: do you pass the means test, and will your property stay protected? Chapter 7 wipes out qualifying unsecured debt like credit cards, medical bills, personal loans, payday loans, and repossession deficiencies. Most cases finish in roughly four months. The vast majority of our clients keep everything they own, because California’s exemption laws are built to protect the home, car, tools, and retirement savings of ordinary filers.
Why Inglewood Filers Choose Wadhwani & Shanfeld
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. That certification is held by a small fraction of attorneys nationwide. Between the firm’s attorneys there are more than 90 years of combined legal experience, and the firm files in every division of the U.S. Bankruptcy Court for the Central District of California. Clients get direct access to an attorney from the first call, a free consultation, and the option to handle everything by phone, email, video, or online chat, including 100% virtual consultations.
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.
Why does that matter in a Chapter 7? Because the decisions that make or break a case are technical: which of California’s two exemption systems to use, whether the means test is truly passed, and how to time a filing when a garnishment or sale date is days away. The firm acts fast in those emergencies and builds a plan around your income, your property, and your goals rather than a one-size-fits-all filing.
Debt Situations That Lead Inglewood Residents to Chapter 7
- Credit Card and Medical Debt: Unsecured balances are the core of Chapter 7. They are discharged, not restructured, which ends the collection calls and the interest.
- Wage Garnishment: A creditor with a judgment can take up to 20% of weekly disposable earnings, or less if your pay is close to the floor set by California’s formula. Filing triggers the automatic stay and stops most garnishments the day the case is filed.
- Bank Levies: A judgment creditor can freeze an account, and California protects a set amount in a deposit account automatically without any claim being filed. Anything above that is exposed, and a Chapter 7 filing halts the levy.
- Repossession Deficiencies: After a car is repossessed and sold, the lender can pursue the shortfall. That deficiency is unsecured debt that Chapter 7 can discharge.
- Collection Lawsuits and Judgments: Suits from firms such as Hunt & Henriques, Reese Law Group, and Patenaude & Felix often end in judgments that last a decade. Bankruptcy can eliminate the underlying debt and halt enforcement.
- Personal and Payday Loans: High-interest loans that snowball are discharged in Chapter 7 like other unsecured debt.
- Older Income Tax Debt: Some older income taxes can be eliminated if they meet specific timing rules, which we check case by case.
- Job Loss, Illness, or Divorce: These are the usual triggers. Bankruptcy is a legal right grounded in the U.S. Constitution, not a personal failure.
Passing the Means Test and Protecting What You Own
Chapter 7 eligibility starts with the means test. Your household income is compared to the California median for a household your size, and if you are above it, your actual allowed expenses are then taken into account. Those median figures are updated periodically, so we run the numbers fresh for every client rather than relying on a rule of thumb. If you do not qualify, Chapter 13 is often the answer, and it also suits people who are behind on a mortgage or car loan and want to keep the property.
Property protection is where California is unusual. The state has opted out of the federal exemptions, so you choose one of two state systems for the entire case. One carries a large homestead exemption that adjusts with inflation and the local median home price, which favors homeowners with equity. The other, found in section 703.140(b), offers a smaller residence amount plus a flexible wildcard that often works better for renters. You also need to have lived in California for at least 730 days to use the state exemptions. Picking the wrong system can cost a filer property, which is why this choice gets careful attention from a board-certified attorney.
Chapter 7 does not wipe out everything. Child support, alimony, most student loans, most government fines, and debts from injuries caused by drunk driving generally survive. We tell you plainly which of your debts fall on each side before you file.
What to Do Now If Creditors Are Closing In
Start by gathering what you have: recent pay stubs, bank statements, your last two years of tax returns, a list of every creditor, and any lawsuit papers or collection letters. Do not make payments on a time-barred debt hoping to settle it. In California, a payment cannot revive a debt that has already passed its limitations period, and only a signed written acknowledgment restarts the clock. The period is four years for written contracts and two for oral ones. That defense must be raised in a written answer to a lawsuit, or a court can still enter judgment against you.
If you have been served, watch your response deadline. For an Inglewood resident, the lawsuit will typically be in Los Angeles County Superior Court, which has a courthouse in Inglewood. Call before the deadline passes so we can decide whether to answer, negotiate, or file.
If a foreclosure is underway, know the timeline. A sale cannot be set earlier than 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 monetary default can be reinstated until five business days before the sale. If a vehicle has been repossessed, the lender must give at least 15 days’ written notice before disposing of it, and you can ask in writing for a 10-day extension of the redemption period. These windows are short, and a Chapter 7 or Chapter 13 filing stops the process the moment the petition is filed.
Your case would be filed with the U.S. Bankruptcy Court for the Central District of California. Inglewood falls within the Los Angeles Division, but the court assigns divisions by the zip code of your street address, so we confirm it through the court’s locator before filing. After filing, you complete a financial management course, attend a brief creditors’ meeting with the trustee, and receive your discharge. Avoid two mistakes: transferring property to relatives or paying back friends right before filing, and hiring a document preparer who cannot give legal advice or defend you if a trustee raises an objection.
Questions Inglewood Residents Ask About Chapter 7
How long does a Chapter 7 case take?
Most cases are completed in roughly four months from filing to discharge. The automatic stay protects you from the first day.
Will I lose my house or car?
Most of our clients keep their homes and vehicles. In Chapter 7, the question is whether your equity is covered by the exemption system we choose, and whether you stay current on the loan. If you have more equity than the exemption covers, or you are behind on payments, Chapter 13 may be the better route.
Can bankruptcy stop a wage garnishment?
Yes. Filing triggers the automatic stay, which stops most garnishments when the case is filed. California law also bars an employer from firing you because your wages are garnished for a single judgment, and federal and state law bar firing you solely for filing bankruptcy.
What debts can Chapter 7 eliminate?
Credit cards, medical bills, personal loans, payday loans, and deficiency balances after a repossession or foreclosure. Some older income taxes can also qualify under timing rules.
What debts survive Chapter 7?
Child support, alimony, most student loans, most government fines, and debts for injuries caused by drunk driving generally cannot be discharged.
How does the means test work?
It compares your household income to the California median for your household size and then accounts for your actual expenses. If you pass, you are eligible for Chapter 7. If not, Chapter 13 is usually the alternative.
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 come out of your paycheck. An employer cannot lawfully fire you solely because you filed.
I was sued over an old debt. Do I have to pay it?
Not necessarily. A written-contract debt generally must be sued on within four years and an oral one within two. But the deadline is a defense you must raise in a written answer, so ignoring the lawsuit can result in a judgment even on a stale debt.
What if a creditor already has a judgment against me?
A California money judgment is enforceable for 10 years and can be renewed, though recent law limits renewals to one time, for five years, on certain medical and personal debt judgments under set dollar limits. Chapter 7 can discharge the underlying debt and stop enforcement.
Can a collector be held liable for harassing me?
Under California’s Rosenthal Act, a consumer can recover actual damages, and a court can add $100 to $1,000 for willful and knowing violations, plus attorney fees. Unlike the federal law, it covers original creditors as well as third-party collectors. The suit must be brought within one year, so tell us about any harassment in your first consultation.
How long can I be barred from filing again?
You must wait 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, though that last period can be shortened if your plan paid enough to unsecured creditors.
How long does a Chapter 7 stay on my credit report?
Up to 10 years from the filing date, though the impact on your score fades well before then. Many clients see their scores begin to recover within the first year with a secured card and on-time payments.
Chapter 7 Representation Across Inglewood and Southern California
From Inglewood, Wadhwani & Shanfeld serves clients throughout Los Angeles County, including neighboring communities like Compton, Torrance, Gardena, Lakewood, Long Beach, Bellflower, Paramount, Norwalk, Cerritos, Cypress, Signal Hill, and Huntington Park. We also represent clients in Los Angeles, Hollywood, Santa Monica, and the Westside, and across the San Fernando Valley in Sherman Oaks, Van Nuys, Encino, Woodland Hills, Reseda, Northridge, Granada Hills, North Hollywood, North Hills, Mission Hills, San Fernando, and Sylmar.
Our reach extends to Santa Clarita and the Antelope Valley communities of Lancaster, Palmdale, and Acton. In the Inland Empire and eastern San Gabriel Valley we help clients in 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 serve Anaheim, Santa Ana, Garden Grove, Buena Park, Fullerton, Huntington Beach, Westminster, Costa Mesa, Newport Beach, Tustin, La Habra, Placentia, Mission Viejo, and Laguna Niguel. Because we handle cases remotely, location is rarely an obstacle.
Talk to an Inglewood Chapter 7 Bankruptcy Attorney
If calls, letters, or a lawsuit have you losing sleep, speak with an Inglewood Chapter 7 bankruptcy attorney at Wadhwani & Shanfeld. The consultation is free, you will talk directly with an attorney, and you will get an honest answer about whether Chapter 7, Chapter 13, or a solution outside of court gives you the best fresh start. Call today to schedule, or handle your consultation entirely by video or phone.
