Northridge Bankruptcy Lawyer
Wadhwani & Shanfeld is a consumer bankruptcy and debt relief law firm that represents Northridge residents and families throughout the San Fernando Valley, along with clients across Los Angeles, Orange, Riverside, and San Bernardino Counties. The firm handles Chapter 7, Chapter 13, debt settlement, foreclosure defense, wage garnishment, creditor lawsuits, and IRS tax debt, and a Northridge bankruptcy lawyer from the firm can take your call directly.
Northridge is a place where people own homes, commute, rent near the university, and carry the kind of debt that comes with all three. That mix matters. A homeowner on a quiet street near Devonshire and a student renter near the campus are in very different bankruptcy situations, even if both are getting the same collection calls.
The first thing to know is that a Northridge filing is not heard in downtown Los Angeles. Cases from this community go to the San Fernando Valley Division of the U.S. Bankruptcy Court for the Central District of California, which sits in Woodland Hills. Knowing which court will actually hold your case is the first practical step, and it is one a lawyer settles before anything is filed.
Why Choose Wadhwani & Shanfeld for Northridge Bankruptcy Help
The firm is led by two Board-Certified Bankruptcy Specialists with more than 90 years of combined legal experience, and clients get direct access to an attorney from the first call. When a garnishment, foreclosure sale, or repossession is days away, the firm acts fast, and cases can be handled entirely by phone, email, video, and online chat, with 100% virtual consultations available. The first consultation is free.
Raj Wadhwani, a founding shareholder and partner, is a Board-Certified Specialist in Consumer Bankruptcy through the American Board of Certification. A Southwestern Law School graduate, he 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. That court is the one your Northridge case will land in, and familiarity with its filing systems is a practical advantage.
Greg Shanfeld, also a founding shareholder and partner and a Board-Certified Specialist in Consumer Bankruptcy, 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 Central District, including the San Fernando Valley Division that hears Northridge cases.
The firm also handles the alternatives. If bankruptcy is the wrong tool, the same attorneys can pursue debt settlement, loan modification, or IRS representation, so the recommendation rests on your numbers rather than on the only service a firm offers.
Debt Situations That Bring Northridge Residents to a Bankruptcy Attorney
- Credit Card and Medical Debt: Unsecured balances are the core of most Chapter 7 cases. Credit cards, medical bills, and payday loans can generally be discharged, which ends the calls and the lawsuits that follow.
- Behind on the Mortgage: Northridge has many single-family homeowners, and a missed-payment spiral can lead to a notice of default. Chapter 13 lets you keep the home and spread the arrears over a plan lasting three to five years.
- Wage Garnishment: A creditor with a judgment can take part of each paycheck. Filing Chapter 7 or Chapter 13 triggers the automatic stay, which halts most garnishments the moment the case is filed.
- Creditor Lawsuits and Judgments: A summons from a collection firm has a response deadline. Missing it can mean a default judgment, so the choice between answering the suit, negotiating, or filing bankruptcy has to be made quickly.
- Car Repossession and Deficiency Balances: Chapter 7 can eliminate a deficiency owed after a repossession, and Chapter 13 can help you keep a vehicle 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 payments.
- Second Mortgages: A wholly unsecured second mortgage can sometimes be stripped off in Chapter 13, and the firm also negotiates second mortgage settlements outside of court.
- Small Business Debt: Owners whose business income has dried up often carry personal guarantees, which makes small business bankruptcy and business debt solutions part of the same conversation.
What to Do When Collectors, a Foreclosure Notice, or a Summons Arrives
Start by gathering paper. Collect every letter, the summons if you were sued, your last two pay stubs, recent bank statements, your mortgage and car loan statements, and any tax notices. Do not pay a collector on an old debt to “make it go away” before talking to a lawyer. In California, a payment cannot revive a debt that is already time-barred, but a signed written acknowledgment of the debt can restart the clock, so be careful about what you sign.
If you were sued, the deadline in the summons is real. The statute of limitations is a defense, not an automatic shield: for written contracts it is four years, for oral contracts two years, and you must raise it in a written answer. If you do nothing, the court can still enter judgment. Suits from the Northridge area are generally heard in a Los Angeles County Superior Court courthouse, and the summons will tell you which one.
For foreclosure, the timeline gives you more room than most people think. A sale date cannot be set until at least 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 you can reinstate a monetary default up to five business days before the sale. If a sale is postponed at least 10 business days, the lender must send written notice of the new date within five business days. A bankruptcy filing stops the sale on the day it is filed.
For a repossessed car, the lender must give at least 15 days’ written notice before selling it, and you can ask in writing for a 10-day extension of the redemption period. If the notice does not arrive within 60 days of repossession or is missing required items, you may not owe a deficiency.
Garnishment is a separate clock. If your paycheck is being garnished, call before the next pay period. Your employer cannot fire you because of a garnishment on a single judgment. When you file, your case goes to the San Fernando Valley Division in Woodland Hills, and you will attend a meeting of creditors rather than a courtroom trial in most consumer cases. Many filers never need to travel at all for consultations, since the firm works by phone and video.
Keeping Your Home, Car, and Paycheck: How California Exemptions Work
The word “liquidation” scares people, but the exemption system is what decides what you keep. California has opted out of the federal exemptions, so you must choose one of two state systems for the whole case. One carries a homestead exemption that is tied to local home prices and adjusted for inflation, with a statutory floor and ceiling. It tends to suit homeowners with real equity. The other is a different set of dollar-limited exemptions that includes a wildcard amount usable on any property, and it often fits renters or people with little home equity.
You must have lived in California long enough, 730 days, to use its exemptions. Choosing the wrong system can cost you property, which is why the choice should be made with a Board-Certified attorney before filing. The dollar amounts are indexed and change over time, so the right figures are confirmed at your consultation.
Bank accounts are a separate protection. California automatically shields a set amount in a deposit account from a creditor’s levy, and the bank applies it without you filing a claim. That protection does not cover levies for child or spousal support, wages owed to another person, or debts owed to the state.
Chapter 7 or Chapter 13? How the Choice Plays Out in Northridge
Chapter 7 wipes out qualifying unsecured debt, and most cases finish in about four months. You must pass the means test, which compares your household income to the California median for your household size. Chapter 13 suits people with steady income who need structure: your debts are reorganized into one payment over three to five years, and creditors are bound once the court confirms the plan.
The deciding factors are usually simple. Behind on a mortgage you want to keep? Chapter 13. Income above the Chapter 7 limit, or priority tax and support debts that Chapter 7 cannot touch? Chapter 13. Mostly credit cards and medical bills on a modest income? Chapter 7. A Northridge attorney from the firm reviews your income, expenses, property, and debts and tells you honestly which fits, or whether settlement outside court makes more sense.
Northridge Bankruptcy Questions, Answered
Which bankruptcy court handles a Northridge filing?
The San Fernando Valley Division of the U.S. Bankruptcy Court for the Central District of California, located in Woodland Hills. The debtor’s street address zip code determines the division, so it is confirmed before filing.
How fast does the automatic stay stop a garnishment or foreclosure?
It takes effect the moment the petition is filed. Creditors must stop collection activity, including garnishments, lawsuits, bank levies, repossessions, and foreclosure proceedings. In an emergency, the firm can often prepare and file quickly to stop a sale or levy.
Will I lose my house in Chapter 7?
Most clients keep their homes. The question is whether your equity falls within the homestead exemption and whether you are current on the mortgage. If you have more equity than the exemption covers or you are behind, Chapter 13 lets you keep the home and catch up over time.
What debts can bankruptcy eliminate?
Most unsecured debts, including credit cards, medical bills, personal loans, payday loans, and deficiencies after repossession or foreclosure. Child support, alimony, most student loans, most government fines, and debts from drunk-driving injuries generally cannot be discharged.
How long can a creditor collect on a judgment?
A California money judgment is enforceable for 10 years from entry and can be renewed. For medical judgments under a set principal amount and personal debt judgments under a lower one, renewal is limited to one time for five years. Bankruptcy can also address a judgment well before it expires.
Can a debt collector in California break the law even if I owe the money?
Yes. The Rosenthal Act covers original creditors as well as third-party collectors. A consumer can recover actual damages, plus an additional $100 to $1,000 if the collector acted willfully and knowingly, and a prevailing consumer can recover attorney fees. The suit must be filed within one year, and a collector can avoid liability by curing a curable violation within 15 days of notice.
How much of my paycheck can a creditor garnish?
On an ordinary judgment, the cap is the lesser of 20% of weekly disposable earnings or 40% 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. If the local minimum wage is higher than the state’s, the local rate is used. You can also ask the court to exempt earnings proven necessary to support your family.
I am a student or recent graduate near the university. Can I file?
Yes. Credit cards, medical bills, and personal loans can be discharged regardless of your age. Most student loans generally cannot, so the firm looks at student loan strategies separately.
Can I file again if I already filed bankruptcy?
Yes, with waiting periods: 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, a period that can be shortened if your plan paid enough to unsecured creditors.
Will my employer find out, and can they fire me?
Your employer is not automatically notified. They may learn if they are a creditor, if a garnishment must be stopped, 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 rather than using a petition preparer?
A preparer can type information into forms but cannot give legal advice, pick your exemptions, or represent you if a trustee or creditor raises a problem. Mistakes can cost you property or your discharge, which is why representation by an attorney matters.
Serving Northridge and the San Fernando Valley Bankruptcy Clients
The firm represents Northridge residents from the neighborhoods around the university and Devonshire Street through North Hills, Granada Hills, Reseda, and Mission Hills. It also serves clients in Encino, Woodland Hills, North Hollywood, Van Nuys, San Fernando, Sylmar, Hollywood, and Santa Monica, along with the wider Westside. Heading north, the firm works with clients in Santa Clarita and the Antelope Valley, including Lancaster, Palmdale, and Acton.
Beyond the Valley, representation extends across Los Angeles County to Long Beach, Lakewood, Torrance, Compton, Inglewood, Gardena, Norwalk, Bellflower, Cerritos, and Huntington Park. In the east, the firm serves the Inland Empire and eastern San Gabriel Valley, including Ontario, Rancho Cucamonga, Upland, Fontana, San Bernardino, Pomona, Chino, Chino Hills, Claremont, Glendora, West Covina, Riverside, and the Coachella Valley. In Orange County, clients come from Anaheim, Santa Ana, Garden Grove, Fullerton, Huntington Beach, Costa Mesa, Newport Beach, Tustin, Mission Viejo, and Laguna Niguel.
Talk to a Northridge Bankruptcy Attorney Today
You do not have to wait for a sale date or a garnishment to take effect before you act. A Northridge bankruptcy attorney at Wadhwani & Shanfeld will review your debts, explain every option inside and outside of bankruptcy, and tell you plainly which path gives you the best fresh start. Call for a free consultation and speak with an attorney directly, in person or entirely by phone or video.
