Palmdale Board Certified Bankruptcy Lawyer
The goal for most people who search for a Palmdale board certified bankruptcy lawyer is simple to state and hard to reach alone: stop the garnishment, the lawsuit, or the foreclosure, and come out the other side with debt that no longer controls the household budget. 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 in Palmdale and across the Antelope Valley, Los Angeles County, and the rest of Southern California.
Board certification matters in this field because bankruptcy is a technical specialty with its own court, its own trustees, and its own unforgiving deadlines. A Palmdale filer is dealing with a federal court, state exemption statutes that have to be chosen with care, and creditors who often respond to a filing by looking for any procedural mistake. The sections below explain what certification means in practice, which debt situations bring Palmdale residents to a bankruptcy lawyer, and what you can do this week to put yourself in a stronger position.
Why Choose Wadhwani & Shanfeld for Board-Certified Bankruptcy Help in Palmdale
Together the attorneys at the firm bring more than 90 years of combined legal experience to cases for clients in Palmdale, Lancaster, Acton, and the wider Antelope Valley, as well as Los Angeles, Orange, Riverside, and San Bernardino Counties. Clients get direct access to an attorney from the first call, a free consultation, and the choice of handling the whole case by phone, email, video, or online chat, including 100% virtual consultations. When a garnishment, foreclosure sale, or repossession is only days away, the firm acts fast.
Raj Wadhwani, a founding shareholder and partner, is a Board-Certified Specialist in Consumer Bankruptcy and 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, a background that shows in how carefully petitions and schedules are put together. 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.
For a Palmdale client, that depth shows up in the decisions that quietly decide a case: which of California’s two exemption systems to elect, whether Chapter 7 or Chapter 13 fits the income and property involved, and how to time a filing against a sale date or a wage levy. The firm files in every division of the U.S. Bankruptcy Court for the Central District of California, so the filing is never limited by where a client lives, and it also resolves debt outside of court when bankruptcy is not the best answer.
Debt Situations That Lead Palmdale Residents to a Bankruptcy Attorney
- Chapter 7 for Unsecured Debt: Credit cards, medical bills, personal loans, payday loans, and deficiency balances can be discharged, usually within about four months. Eligibility turns on the means test, which compares household income to the California median for your household size and then looks at actual expenses.
- Chapter 13 to Save a Home or Car: A repayment plan of three to five years lets you catch up on missed mortgage or car payments while creditors are bound by the confirmed plan. It also suits people whose income is above the Chapter 7 limits.
- Foreclosure on a Palmdale Home: California foreclosure runs on fixed timelines, and a bankruptcy filing halts the process the moment the case is opened. Chapter 13 can then spread the arrears over the life of the plan, and in some cases a wholly unsecured second mortgage can be stripped off.
- Wage Garnishment: A garnishment on an ordinary judgment takes a capped share of disposable pay each period, but even a capped share hurts in a tight budget. Filing Chapter 7 or Chapter 13 stops most garnishments through the automatic stay.
- Creditor Lawsuits and Judgments: Collection firms file suit in Los Angeles County Superior Court, and a default judgment can lead to a bank levy or a garnishment. Bankruptcy can halt the case, and judgments already entered can often be dealt with in the same filing.
- 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 payment plans for debt that cannot be eliminated.
- Repossession and Auto Deficiencies: A repossessed vehicle often leaves a deficiency balance that is dischargeable in Chapter 7, and Chapter 13 can let you keep a car you are behind on.
- Small Business and Student Loan Debt: Business debts from a venture that did not work out can be addressed through small business bankruptcy or negotiation, and the firm also develops strategies for student loan debt, which is rarely discharged in bankruptcy.
What to Do Right Now If Creditors Are Closing In on You in Palmdale
Start by sorting out which deadline is nearest, because the response differs by problem. If you have been served with a lawsuit, the response deadline printed on the summons is the one that matters most. In California, an expired limitations period is only a defense, and you have to raise it in a written answer; a debtor who ignores the suit can still have judgment entered. The limitation period is four years on written contracts and book accounts and two years on oral contracts, and a payment on a time-barred debt does not revive it, though a signed written acknowledgment can restart the clock. Bring the summons and complaint to a consultation before the deadline passes, since the question of whether to answer, negotiate, or file bankruptcy depends on what the papers say.
If the problem is a foreclosure, read the recorded notices closely. A sale date cannot be set until at least three months and 20 days after a 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 until five business days before the sale. If a sale has been postponed by at least 10 business days, the lender must give you written notice of the new date within 5 business days. Filing bankruptcy halts the sale immediately, and the firm can prepare an emergency filing when a sale date is close.
If your car has been repossessed, the lender must give written notice of its intent to dispose of the vehicle at least 15 days ahead, extended to 20 days if the notice is mailed from or to an address outside California. On written request, the redemption period must be extended by 10 days. You can be held liable for a deficiency only if the notice was sent within 60 days of the repossession and contained the required items, and you can ask for an accounting after the sale. Keep every notice, because defects in them can reduce or eliminate a deficiency.
For wage garnishment, gather your last few pay stubs and the court papers behind the judgment. On an ordinary judgment, the garnishment is limited to the lesser of 20 percent of weekly disposable earnings or the amount by which those earnings exceed 48 times the minimum hourly wage, with different multiples for biweekly, semimonthly, and monthly pay, and a higher local minimum wage is used where one applies. You may also claim as exempt the part of your earnings shown to be necessary to support yourself and your family. Your employer cannot fire you because of a garnishment on a single judgment. For bank levies, a set amount in your deposit accounts is protected automatically without filing a claim, but that protection does not extend to wages owed to others, support obligations, or debts owed to the state.
Avoid the common mistakes: paying one creditor in full right before filing, moving property to a relative, running up new charges, or handing your petition to a form preparer who cannot give legal advice. Bankruptcy cases for Palmdale residents are filed in the U.S. Bankruptcy Court for the Central District of California, and the court assigns the division by the zip code of the debtor’s street address. Lancaster, Palmdale, and Santa Clarita appear on the San Fernando Valley Division community list with footnotes, so the zip code has to be confirmed through the court’s locator before a division is assigned. The firm handles that determination for you. If you are in Palmdale and file, you will also need to have lived in California for at least 730 days to use the state’s exemptions.
How California Exemptions Decide What a Palmdale Filer Keeps
Most clients keep everything they own, and that outcome rests on exemptions. California has opted out of the federal exemption scheme, so a filer chooses one of two state systems and must use that one for the entire case. One system offers a homestead exemption that is the greater of the prior-year countywide median single-family home price, up to a ceiling, or a statutory floor, and both the floor and the ceiling adjust each year for inflation. The other system offers a smaller residence exemption but includes a wildcard that can be applied to any property, which often works better for renters or for people with little home equity. Vehicle and tools-of-the-trade exemptions exist in both, and dollar amounts in the second system are indexed to the California consumer price index every three years.
The choice is not mechanical. A Palmdale homeowner with equity in the house, a retirement account, and a financed truck needs a different analysis from a renter with a car and some savings. The attorneys run both systems against your actual assets before a petition is filed, which is one reason a bankruptcy specialist’s judgment matters more here than in almost any other part of the case.
Judgments, Time Limits, and Rosenthal Act Protections
A California money judgment is enforceable for 10 years from entry, and the creditor can renew it by filing an application, extending enforceability another 10 years. For medical expense judgments with unpaid principal under $200,000 and personal debt judgments with unpaid principal under $50,000, the law now limits renewal to a single time and only for five years. After the period ends, enforcement stops and liens created by enforcement are extinguished.
California also gives debtors a statute of their own against abusive collection. The Rosenthal Act covers original creditors as well as third-party collectors, which sets it apart from the federal FDCPA. A consumer can recover actual damages, and a court can add $100 to $1,000 if the collector acted willfully and knowingly, plus reasonable attorney fees for a prevailing consumer. A suit must be brought within one year, and a collector escapes liability if it notifies the consumer and corrects a curable violation within 15 days of discovering or receiving written notice of it. If collectors are calling at odd hours, misstating what you owe, or threatening actions they cannot take, save the voicemails and letters, because those records can matter both in a bankruptcy and in a separate claim.
Palmdale Bankruptcy FAQs
What does it mean for a bankruptcy lawyer to be board certified?
Board certification in consumer bankruptcy through the American Board of Certification is a credential earned by a small fraction of attorneys in the country. Both founding shareholders at Wadhwani & Shanfeld hold it, which signals tested knowledge and substantial experience in this specific field rather than general practice.
How fast can a bankruptcy stop a garnishment, foreclosure, or lawsuit?
The automatic stay takes effect the moment the petition is filed with the court, and creditors must stop collection activity. When a sale date or a levy is only days away, the firm can often prepare and file a case quickly enough to stop it.
Which debts can bankruptcy eliminate?
Most unsecured debt can be discharged, including credit cards, medical bills, personal loans, payday loans, and deficiency balances after a repossession or foreclosure. Some older income tax debt can be discharged if it meets timing rules. Child support, alimony, most student loans, most government fines, and debts for injuries caused by drunk driving generally cannot be discharged.
Will I lose my Palmdale home if I file?
Most clients keep their homes. In Chapter 7, the question is whether your equity is covered by California’s homestead exemption, and if it is and you stay current on the mortgage, you keep the house. If you have more equity than the exemption protects or you are behind on payments, Chapter 13 lets you keep the home and catch up over time.
Do I have to qualify under the means test to file Chapter 7?
Generally yes. The means test compares your household income to the California median for a household of your size and then accounts for your actual expenses. If you do not qualify, Chapter 13 is often the alternative, since it is designed for people with steady income above the Chapter 7 limits.
Can I file bankruptcy if I filed before?
Yes, subject to waiting periods. 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.
My bank account was frozen by a creditor. What can I do?
A set amount in your deposit accounts is protected automatically, and the bank must apply that protection before turning money over, with no claim of exemption required. It does not apply to levies for wages owed to others, child or spousal support, or debts owed to the state. A bankruptcy filing also halts bank levies, and the firm can advise on whether to file or to challenge the levy.
The debt collector suing me says the debt is from years ago. Does that end the case?
Not automatically. The four-year period on written contracts and book accounts, and two years on oral contracts, is a defense you must raise in a written answer. If you do not respond, the court can still enter a default judgment. Making a payment on a time-barred debt will not revive it, but a signed written acknowledgment can, so be careful what you sign.
Will my employer find out, and can they fire me?
Your employer is not automatically notified. They may learn of it if they are a creditor, if a garnishment has to stop, or if Chapter 13 payments are deducted from your paycheck. California and federal law prohibit firing you solely because you filed for bankruptcy.
Do I need to travel to an office, or can I handle everything remotely?
No travel is required. The firm handles cases fully by phone, email, video, and online chat for clients anywhere in Southern California, and consultations can be 100% virtual, which is practical for Antelope Valley residents who would rather not drive into Los Angeles.
Is it safe to use a petition preparer or notary instead of a lawyer?
A petition preparer can type information into forms but cannot give legal advice, choose your exemptions, or represent you if a creditor or the trustee raises a problem. Mistakes in a filing can cost you property or your discharge, which is why representation by a bankruptcy attorney matters.
Is debt settlement a better option than bankruptcy for some people?
Sometimes. Debt settlement negotiates directly with a lender to resolve a debt for less than you owe without going through bankruptcy, and it can fit a person with a few manageable accounts. Because the firm handles both bankruptcy and its alternatives, the recommendation is based on your income, property, and goals rather than on the only service offered.
Serving Palmdale and Antelope Valley Bankruptcy Clients Across Southern California
Wadhwani & Shanfeld represents clients throughout Palmdale and the Antelope Valley, including Lancaster and Acton, and across Los Angeles County, from Santa Clarita and Van Nuys to Los Angeles, Long Beach, Lakewood, Torrance, Compton, and Inglewood. In the San Fernando Valley and the Westside, the firm serves families in Sherman Oaks, Encino, Woodland Hills, Reseda, Northridge, Granada Hills, North Hollywood, North Hills, Mission Hills, San Fernando, Sylmar, Hollywood, and Santa Monica.
The firm’s work also reaches the Inland Empire and the eastern San Gabriel Valley, including Ontario, Rancho Cucamonga, Upland, Fontana, San Bernardino, Riverside, Pomona, Chino, Chino Hills, Montclair, Claremont, Glendora, West Covina, and the Coachella Valley. In the southeast part of Los Angeles County and into Orange County, clients come from Norwalk, Bellflower, Paramount, Gardena, Cerritos, Cypress, Signal Hill, Huntington Park, Anaheim, Santa Ana, Garden Grove, Buena Park, Fullerton, Huntington Beach, Westminster, Costa Mesa, Newport Beach, Tustin, La Habra, Placentia, Mission Viejo, and Laguna Niguel.
Speak With a Palmdale Board-Certified Bankruptcy Attorney Today
If calls, letters, a garnishment, or a court date are taking over your days, talk to a Palmdale board certified bankruptcy attorney before the next deadline arrives. Call Wadhwani & Shanfeld for a free consultation and speak directly with an attorney about whether Chapter 7, Chapter 13, debt settlement, or another route gives you the best fresh start. You can handle your entire case remotely or in person, and the conversation costs nothing to begin.
