Los Angeles County Debt Relief Lawyer
Debt collectors in Los Angeles County do not wait for you to make up your mind, so the decision in front of you is a real one: settle, fight a lawsuit, restructure, or file bankruptcy. Wadhwani & Shanfeld is a consumer bankruptcy and debt relief law firm serving Los Angeles County, along with Orange, Riverside, and San Bernardino Counties, and a Los Angeles County debt relief lawyer from our firm can tell you which of those paths fits your income, your property, and the deadlines already running against you.
Debt relief is not one product. For some people the answer is Chapter 7, which wipes out qualifying unsecured debt. For others it is Chapter 13, which turns a pile of payments into one affordable plan. And for a surprising number of people, the right answer is no filing at all: an old debt may be too old to sue on, a judgment may be close to expiring, or a negotiated settlement may cost less than any court process.
The sections below walk through how debt problems actually play out in this county, what the law gives you, and what to do in the first days after a lawsuit, garnishment, or sale notice arrives.
Why Choose Wadhwani & Shanfeld for Debt Relief in Los Angeles County
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, foreclosure defense, wage garnishment, creditor lawsuits, IRS tax debt, student loan debt, second mortgage settlements, loan modification, and small business debt for clients across Los Angeles County and Southern California.
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. Both are Board-Certified Specialists in Consumer Bankruptcy, a distinction held by a small fraction of attorneys.
For debt relief specifically, that breadth matters. A firm that only files bankruptcy will tend to recommend bankruptcy; a settlement company will tend to recommend settlement. We handle both, so the recommendation follows your numbers. You speak with an attorney directly from the first call, we act fast when a garnishment, foreclosure sale, or repossession is days away, and the free consultation can be done entirely by phone, email, video, or online chat if you prefer not to travel across the county.
Debt Problems We See Across Los Angeles County
- Credit Card and Personal Loan Debt: Unsecured balances are the most common reason people call. They can be discharged in Chapter 7, folded into a Chapter 13 plan, or negotiated down through settlement, depending on income and assets.
- Medical Bills: Illness and injury drive many filings. Medical debt is unsecured and generally dischargeable, and it can be addressed alongside credit cards in a single case.
- Collection Lawsuits and Judgments: A suit in a Los Angeles County Superior Court district means a response deadline is running. A judgment can lead to wage garnishment or a bank levy, and bankruptcy can stop both.
- Wage Garnishment: On an ordinary judgment, the cap is the lesser of 20 percent of weekly disposable earnings or the amount by which those earnings exceed 48 times the minimum hourly wage. Where local minimum wage is higher than the state rate, the local figure is used.
- Foreclosure and Second Mortgages: Missed mortgage payments in a high-cost housing market can threaten a home quickly. Chapter 13 can cure arrears over time, and some wholly unsecured second mortgages can be stripped off.
- Car Repossession and Deficiencies: After a repossession, a lender may pursue the gap between the sale price and the loan balance. That deficiency is dischargeable unsecured debt in many cases.
- IRS Tax Debt: Levies and unpaid balances can be addressed through payment arrangements, and some older income tax debt can be discharged if it meets the timing rules.
- Student Loans and Small Business Debt: Most student loans cannot be discharged, so we look at strategies built around that reality. Business owners often carry personal guarantees that make business debt a personal problem too.
What to Do in the First Days After a Lawsuit, Garnishment, or Sale Notice
Start by sorting what you have received. A summons and complaint from a collector has a response deadline printed on it. Missing it can lead to a default judgment, and from there to a garnishment or levy. Do not ignore papers hoping the problem fades; collectors count on silence.
Gather the documents an attorney will need: the lawsuit papers, recent pay stubs, bank statements, your mortgage and car loan statements, tax returns, and a list of every creditor you can identify. Write down any court date or sale date. If a foreclosure notice has arrived, note that California law generally sets the sale no earlier than three months and 20 days after the notice of default is recorded, and the notice of sale must be mailed and posted at least 20 days before the sale. A monetary default can be reinstated until five business days before the sale.
If a car has been repossessed, the lender must send at least 15 days’ written notice before disposing of it, and that period becomes 20 days if the notice is mailed from or to an address outside California. A written request extends the redemption period by 10 days. A borrower is liable for a deficiency only if the notice went out within 60 days of repossession and contained the required items.
Bank accounts have some automatic protection. When a creditor levies your account, the bank must apply a set exemption amount without you filing anything, though that protection does not cover levies for wages owed to another person, support, or debts owed to the state. Bankruptcy is different: filing Chapter 7 or Chapter 13 triggers the automatic stay, which halts most garnishments, levies, lawsuits, repossessions, and foreclosure proceedings the moment the case is filed.
Where you file matters too. The U.S. Bankruptcy Court for the Central District of California covers Los Angeles County through its Los Angeles Division and its San Fernando Valley Division, and your street address zip code, not a P.O. box, determines which one hears your case. Communities such as Encino, Van Nuys, Sherman Oaks, Northridge, Reseda, and Woodland Hills fall in the San Fernando Valley Division, while Lancaster, Palmdale, and Santa Clarita should be confirmed by zip code. Malibu is served by the Northern Division even though it sits in Los Angeles County. We file in every division of the court, so this sorting is handled for you.
Chapter 7, Chapter 13, or Settlement: Matching the Tool to the Debt
Chapter 7 generally takes about four months and eliminates qualifying unsecured debt. You must pass the means test, which compares your household income to the California median for your household size and then considers your actual expenses. Chapter 13 suits people with steady income who need time: payments run three to five years, creditors are bound once the court confirms the plan, and it is often the better tool for catching up on a mortgage or car loan, handling priority tax debt, or protecting equity beyond what exemptions cover. Debt settlement avoids court altogether by negotiating with the lender for less than the balance.
Property protection drives many of these decisions. California has opted out of the federal exemptions, so filers choose one of two state systems and must use that single system for the whole case. One offers a homestead exemption that for homeowners is tied to the county median home price, with a statutory floor and a ceiling that adjust annually. The other offers a smaller residence amount plus a wildcard that often suits renters. You generally must have lived in California for at least 730 days to use the state’s exemptions. Choosing the wrong system can cost you property, which is why we model both before filing.
Old Debts, Old Judgments, and Collector Misconduct
Not every debt deserves a fight in court. In California a collector generally has four years to sue on a written contract or book account and two years on an oral contract. The expired deadline is a defense you must raise in a written answer; if you do not respond, the court can still enter judgment. A payment on a time-barred debt cannot revive it, and only a signed written acknowledgment restarts the clock.
Judgments have their own life span. A California money judgment is enforceable for 10 years from entry, and a renewal application extends it another 10 years. Since SB 1200, renewal is limited to one time, for five years only, for medical expense judgments with unpaid principal under $200,000 and personal debt judgments with unpaid principal under $50,000. Knowing the age of a judgment changes the strategy entirely.
Collectors also have rules to follow. Under the Rosenthal Act, a consumer can recover actual damages, an additional $100 to $1,000 if the collector acted willfully and knowingly, and reasonable attorney fees. Unlike the federal law, the Rosenthal Act reaches original creditors as well as third-party collectors, but a suit must be brought within one year, and a collector can avoid liability by correcting a curable violation within 15 days of discovering it or receiving written notice. If a collector has been harassing you or misstating what you owe, tell us.
Los Angeles County Debt Relief Questions, Answered
What is the difference between debt relief and bankruptcy?
Bankruptcy is one form of debt relief, handled in federal court. Debt relief also includes settlement, negotiation, loan modification, and IRS payment arrangements. We evaluate all of them so the recommendation fits your situation.
Do I have to file bankruptcy to deal with a collection lawsuit?
No. Depending on the facts, the right move may be answering the suit, raising a limitations defense, negotiating a resolution, or filing bankruptcy. The key is acting before your response deadline passes.
How fast can bankruptcy stop a garnishment or foreclosure?
The automatic stay takes effect the moment the petition is filed. When a sale or levy is imminent, we can often prepare and file a case very quickly.
Will I lose my home or car?
Most of our clients keep both. In Chapter 7 the question is whether your equity is covered by California’s exemptions and whether you are current on payments. Chapter 13 lets you keep property and catch up arrears over time.
Which debts cannot be wiped out?
Child support, alimony, most student loans, most government fines, and debts for injuries caused by drunk driving generally cannot be discharged. Some older income taxes can be eliminated if they meet specific timing rules.
How much of my paycheck can a creditor take?
On an ordinary judgment, the lesser of 20 percent of weekly disposable earnings or the amount exceeding 48 times the minimum hourly wage. Biweekly, semimonthly, and monthly pay use 96, 104, and 208 times the minimum wage. You can also ask the court to exempt the portion of earnings proven necessary to support you or your family.
Can my employer fire me because of a garnishment?
California law bars an employer from firing you because your wages are garnished for a single judgment. Employers also may not fire you solely for filing bankruptcy.
A collector sued me over a debt from years ago. Can they still win?
Possibly, if you do nothing. A written contract or book account claim is time-barred after four years, but the court will not apply that defense unless you raise it in a written answer.
Can I file bankruptcy again if I filed before?
Yes, after waiting periods: 8 years between Chapter 7 filings, 4 years for Chapter 13 after a Chapter 7, 2 years between Chapter 13 filings, and generally 6 years for Chapter 7 after a Chapter 13, which can be shortened if the plan paid enough to unsecured creditors.
Is it worth hiring a lawyer instead of using a petition preparer?
A preparer can type forms but cannot advise you, choose your exemptions, or represent you if a trustee or creditor objects. Errors can cost you property or your discharge.
Will bankruptcy affect my credit permanently?
Chapter 7 can stay on a 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 that, and many clients begin rebuilding within the first year.
Do I need to come to an office?
No. We handle cases fully by phone, email, video, and online chat, and we offer 100% virtual consultations.
Serving Debt Relief Clients Across Los Angeles County and Beyond
We represent clients throughout Los Angeles County, from the city of Los Angeles and Hollywood to the Westside and Santa Monica. In the San Fernando Valley, that includes Sherman Oaks, Van Nuys, Encino, Woodland Hills, Reseda, Northridge, Granada Hills, North Hollywood, North Hills, Mission Hills, San Fernando, and Sylmar, plus Santa Clarita to the north. South and east, we serve Long Beach, Lakewood, Torrance, Compton, Inglewood, Gardena, Norwalk, Bellflower, Paramount, Cerritos, Signal Hill, Huntington Park, Pomona, Claremont, Glendora, and West Covina. In the Antelope Valley, we serve Lancaster, Palmdale, and Acton.
Our work extends to neighboring Orange County, including Anaheim, Santa Ana, Garden Grove, Fullerton, Huntington Beach, Costa Mesa, and Newport Beach, and to Riverside and San Bernardino Counties, including Ontario, Rancho Cucamonga, Upland, Fontana, Chino, Chino Hills, Montclair, Riverside, and the Coachella Valley.
Talk to a Los Angeles County Debt Relief Attorney Today
You do not need to have your whole financial picture sorted out before calling. A Los Angeles County debt relief attorney at Wadhwani & Shanfeld can review your debts, income, and property, explain every option inside and outside of bankruptcy, and tell you honestly which one gives you the best fresh start. The consultation is free, you reach an attorney directly, and you can handle everything remotely. Call today, especially if a court date, garnishment, or sale date is approaching.
