Pacoima Bankruptcy Lawyer
The goal for most people in Pacoima who call a bankruptcy firm is simple: make the calls stop, keep the car and the roof, and get out from under balances that keep growing. Wadhwani & Shanfeld is a consumer bankruptcy and debt relief law firm that handles Chapter 7, Chapter 13, debt settlement, foreclosure defense, wage garnishment, creditor lawsuits, and IRS tax debt for individuals and families across Los Angeles County and the rest of Southern California. If you are looking for a Pacoima bankruptcy lawyer, that is the work we do every day.
Pacoima sits in the northeast San Fernando Valley, and that detail matters for your case. A Pacoima filer’s bankruptcy is heard by the San Fernando Valley Division of the U.S. Bankruptcy Court for the Central District of California, which sits in Woodland Hills and lists Pacoima among the communities it serves. Knowing which division you fall into, and how its trustees and judges handle exemptions, is part of getting a filing right the first time.
Below is what actually drives the decisions in a Pacoima case: which chapter fits, what property California lets you keep, what to do when a garnishment or sale date is close, and what to do about a creditor lawsuit before the clock runs out.
Why Choose Wadhwani & Shanfeld for Bankruptcy Help in Pacoima
Wadhwani & Shanfeld has helped more than 30,000 individuals and families resolve debt, and the firm serves clients throughout Los Angeles, Orange, Riverside, and San Bernardino Counties, including Pacoima and the surrounding San Fernando Valley communities. 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. Clients get direct access to an attorney from the first call, free consultations, and the option to handle everything by phone, email, video, or online chat, including 100% virtual consultations.
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. The firm files in every division of the Central District, including the San Fernando Valley Division where Pacoima cases are filed.
Why that matters to you: a bankruptcy petition is a sworn document. Errors in exemptions, omitted debts, or the wrong exemption system can cost you property or your discharge. When a garnishment, foreclosure sale, or repossession is days away, the firm acts fast, because the protection of the automatic stay begins the moment a petition is filed. A Pacoima bankruptcy attorney who knows the local division and files in it routinely is worth far more than a form-filling service.
Debt Situations That Bring Pacoima Residents to a Bankruptcy Attorney
- Credit Card and Medical Debt: Unsecured balances are the classic Chapter 7 target. Once collectors escalate to lawsuits, the pressure rises quickly, and discharge can wipe the balances out entirely if you pass the means test.
- Wage Garnishment: A creditor with a judgment can take a slice of each paycheck. Filing Chapter 7 or Chapter 13 stops most garnishments when the case is filed through the automatic stay.
- Frozen or Levied Bank Accounts: A judgment creditor can levy a bank account. California has an automatic deposit account exemption that banks must apply without you filing a claim, but it does not cover wages owed to another person, child or spousal support, or debts owed to the state.
- Foreclosure and Missed Mortgage Payments: Chapter 13 lets you catch up arrears over time and keep the home. A wholly unsecured second mortgage can sometimes be stripped off in a Chapter 13 case.
- Car Repossession and Deficiency Balances: If a lender takes your vehicle and sells it for less than you owe, the leftover deficiency is unsecured debt that Chapter 7 can discharge.
- Creditor Lawsuits and Judgments: Suits from collection firms and original creditors can end in default judgments that carry long enforcement periods. Bankruptcy halts the suit and lets you deal with the judgment.
- IRS Tax Debt: Some older income tax debt can be discharged if it meets specific timing rules; other tax debt can be handled through a Chapter 13 plan or IRS negotiation.
- Small Business and Personal Loan Debt: Self-employed Pacoima residents often carry business debts they have personally guaranteed, which blurs the line between business and consumer debt and makes the choice of strategy more important.
What to Do Right Now If You Are Falling Behind in Pacoima
Start by gathering paperwork, not by paying one creditor to quiet it down. Pull together recent pay stubs, the last two years of tax returns, bank statements, a list of every debt with the collector’s name, and anything you have been served with. Do not ignore a summons. A lawsuit response deadline is short, and an expired limitations period is a defense you must raise in a written answer, or the court can still enter judgment against you.
Know the time limits that apply to old debts. In California, a written contract debt can be sued on for four years and an oral contract debt for two. Be careful with collectors who ask for a small “good faith” payment: a payment cannot revive a debt that is already time-barred, but a signed written acknowledgment can restart the clock on one that is not yet barred, so do not sign anything without advice.
If a garnishment is hitting your paycheck, understand the cap. On an ordinary judgment the garnishment is limited to 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, with higher multiples for biweekly, semimonthly, and monthly pay. If the 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 your earnings proven necessary to support you and your family. Your employer cannot fire you because your wages are garnished for a single judgment.
If you own a home, the timeline in a California foreclosure gives you more room than most people realize. The sale date can be no 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. A monetary default can be reinstated up to five business days before the sale. If a sale is postponed at least 10 business days, you are entitled to written notice of the new date within five business days. Those windows are where a bankruptcy filing does its best work.
For a vehicle, the lender must send at least 15 days’ written notice before disposing of a repossessed car, and you can ask in writing to extend the redemption and reinstatement periods by 10 days. A deficiency is only recoverable if the proper notice went out within 60 days of repossession.
Finally, call an attorney before you file anything yourself. A free consultation costs nothing, and the choice between Chapter 7, Chapter 13, and settlement turns on facts only a review of your income, property, and debts can answer.
Chapter 7 or Chapter 13: Choosing the Right Filing
Chapter 7 wipes out qualifying unsecured debt in roughly four months. You qualify by passing the means test, which compares your household income to the California median for your household size and then accounts for actual expenses. Despite the “liquidation” label, most of our clients keep everything they own, because California exemptions protect home equity, vehicles, household goods, tools of the trade, and retirement accounts.
Chapter 13 fits when income is steady but Chapter 7 is not available or not enough. Debts are reorganized into one monthly payment over three to five years, and creditors are bound once the court confirms the plan. It is the usual tool for catching up on a mortgage or car loan, handling priority tax debt or support arrears, and protecting equity above what exemptions cover.
Some people do not need bankruptcy at all. Debt settlement, loan modification, IRS representation, and second mortgage settlements are real alternatives, and the firm will tell you honestly when one of them fits better than a court filing.
California Exemptions: What You Keep When You File in Pacoima
California has opted out of the federal exemption scheme, so a filer chooses between two state systems for the entire case. One uses the standard exemptions in the Code of Civil Procedure, including a homestead exemption based on the prior year’s countywide median single-family sale price, bounded by a statutory floor and ceiling that adjust annually for inflation. The other uses a separate set of exemptions with a smaller residence amount, a motor vehicle amount, tools of the trade, and a wildcard that can be applied to any property, including unused residence exemption. Homeowners with equity usually lean toward the first system; renters with little equity often do better under the second.
You must have lived in California for at least 730 days to use California’s exemptions. The dollar amounts under the second system adjust every three years, so confirm current figures with an attorney rather than relying on an old chart. Choosing the wrong system is one of the costliest mistakes in a filing, and it cannot be mixed and matched.
Pacoima Bankruptcy Questions, Answered
How fast does bankruptcy stop a garnishment or collection call?
The automatic stay takes effect the moment the petition is filed. Creditors must stop collection activity, including most wage garnishments, lawsuits, and levies. In an emergency, the firm can often prepare and file a case quickly to stop a sale or levy.
Which court will handle my case if I live in Pacoima?
The San Fernando Valley Division of the U.S. Bankruptcy Court for the Central District of California covers Pacoima. The division is determined by your street address zip code, which the court’s Court Locator can confirm.
Will I lose my house or car?
Most clients do not. In Chapter 7, the question is whether your equity is covered by California’s exemptions and whether you are current on the loan. If you have more equity than the exemption covers or you are behind, Chapter 13 can let you keep the property and catch up over time.
Can bankruptcy eliminate a judgment against me?
Judgments for most unsecured debts can be discharged, which ends your personal liability. A California money judgment is enforceable for 10 years from entry and can be renewed, though recent law limits renewal to one time, for five years, for medical expense judgments with unpaid principal under $200,000 and personal debt judgments with unpaid principal under $50,000.
Will my employer find out I filed?
Not automatically. They may learn it if they are a creditor, if a garnishment must be stopped, or if Chapter 13 payments are deducted from your pay. California and federal law bar an employer from firing you solely because you filed.
What debts can bankruptcy not wipe 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, if they meet specific timing rules.
How soon can I file again after a previous bankruptcy?
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 the plan paid enough to unsecured creditors.
A collector is violating the rules. Can I do something about it?
California’s Rosenthal Act applies to original creditors as well as third-party collectors. A consumer can recover actual damages, a court can add $100 to $1,000 for willful and knowing violations, and a prevailing consumer can recover reasonable attorney fees. The suit must be brought within one year, and a collector can escape liability by correcting a curable violation within 15 days of learning of it.
Is it worth hiring a lawyer instead of a paralegal or document preparer?
A bankruptcy petition preparer can type your information into forms but cannot give legal advice, choose your exemptions, or represent you if a creditor or trustee objects. Mistakes can cost you property or your discharge.
Can I handle the case without coming into an office?
Yes. The firm handles cases fully by phone, email, video, and online chat for clients across Southern California, and offers 100% virtual consultations.
If my bank account was frozen, is any of the money protected?
California applies an automatic deposit account exemption per judgment debtor, which the bank must apply before turning money over to the levying officer, with no claim of exemption required. It does not apply to levies for wages owed to another, support, or debts owed to the state.
How long will bankruptcy hurt my credit?
A Chapter 7 can remain on a report for up to 10 years from filing, and Chapter 13 is typically removed after 7 years. The impact fades well before then, and many clients begin rebuilding within the first year with a secured card and on-time payments.
Pacoima Bankruptcy Representation Across the San Fernando Valley and Beyond
Wadhwani & Shanfeld represents Pacoima residents and neighbors throughout the San Fernando Valley, including Sylmar, San Fernando, Mission Hills, North Hills, Granada Hills, Northridge, Reseda, Van Nuys, North Hollywood, Encino, Woodland Hills, and Sherman Oaks. The firm also works with clients in Hollywood, Santa Monica, and the Westside, as well as in Santa Clarita, Lancaster, Palmdale, Acton, and the Antelope Valley.
The reach continues across Los Angeles County into Los Angeles, Long Beach, Lakewood, Torrance, Compton, Inglewood, Gardena, Norwalk, Bellflower, Paramount, Cerritos, Cypress, Signal Hill, and Huntington Park. In the Inland Empire and eastern San Gabriel Valley, the firm serves Ontario, Rancho Cucamonga, Upland, Fontana, San Bernardino, Riverside, Pomona, Chino, Chino Hills, Montclair, Claremont, Glendora, West Covina, and the Coachella Valley. In Orange County, clients come from Anaheim, Santa Ana, Garden Grove, Buena Park, Fullerton, Huntington Beach, Westminster, Costa Mesa, Newport Beach, Tustin, La Habra, Placentia, Mission Viejo, and Laguna Niguel.
Talk With a Pacoima Bankruptcy Attorney Today
You do not have to wait for the sale date, the garnishment, or the court deadline to ask for help. Call Wadhwani & Shanfeld for a free consultation with a Pacoima bankruptcy attorney who will review your income, property, and debts, explain every option inside and outside of bankruptcy, and tell you plainly which path gives you the best fresh start. You can meet in person or handle your entire case remotely, whichever is easier for you.
