Paramount Debt Relief Lawyer
Paramount residents who are weighing a debt relief lawyer are usually past the point of wondering whether the debt is a problem; the question is which tool fits it. Bankruptcy, a negotiated settlement, a defense to a collection lawsuit, and a loan modification each solve different problems, and picking the wrong one can cost you months or property. 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 people in Paramount, across Los Angeles County, and throughout Southern California.
The right Paramount debt relief lawyer starts by matching the strategy to the debt rather than the other way around. A credit card balance that is already past California’s four-year deadline to sue on a written contract calls for a different response than a paycheck that is being garnished under a judgment. A judgment is enforceable for ten years from the date it is entered, and it can be renewed, so a creditor who won a case years ago may still be able to reach your wages or bank account. Knowing where each of your debts sits on that timeline is often the first thing that changes the plan.
Why Choose Wadhwani & Shanfeld for Debt Relief in Paramount
The firm is led by two Board-Certified Specialists in Consumer Bankruptcy through the American Board of Certification, Raj Wadhwani and Greg Shanfeld, both founding shareholders and partners. Together with their team they bring more than 90 years of combined legal experience to consumer debt problems, and that range matters because debt relief is rarely a single-option decision. Clients get direct access to an attorney from the first call, free consultations, and the choice of meeting by phone, email, video, or online chat, with 100% virtual consultations available.
Raj Wadhwani 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 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 U.S. Bankruptcy Court for the Central District of California, which is relevant to anyone in Paramount because the court assigns your case to a division based on your home zip code, and a filing in the wrong place creates delay at the worst moment.
Because the firm handles bankruptcy and its alternatives, the recommendation you get is not shaped by having only one service to sell. If settlement or negotiation will do the job without a court filing, you will hear that. When a garnishment, foreclosure sale, or repossession is only days away, the firm acts fast to stop it.
Debt Problems That Bring Paramount Residents to a Debt Relief Attorney
- Credit Card and Medical Debt: Unsecured balances like these are the most common reason people call. Chapter 7 can eliminate them if you pass the means test, which compares your household income to the California median for your household size and then looks at your actual expenses.
- Creditor Lawsuits and Judgments: Collection firms often sue on older accounts and count on people not responding. The expired limitations period is a defense you must raise in a written answer, or the court can still enter judgment against you.
- Wage Garnishment: A garnishment on an ordinary judgment is capped by a formula tied to your weekly disposable earnings and the minimum wage, and you can ask the court to exempt the portion of your pay shown to be necessary to support your family. Filing bankruptcy stops most garnishments when the case is filed.
- Bank Account Levies: California automatically shields a set amount in a deposit account from a levy without any claim being filed, and the bank must apply that protection itself. It does not apply to levies for child or spousal support, wages owed to another person, or debts owed to the state.
- Mortgage Default and Foreclosure: Behind on the house payment but trying to keep the home is a Chapter 13 situation in many cases, because the plan lets you catch up arrears over time. A wholly unsecured second mortgage can sometimes be stripped off through the same process.
- Car Repossession and Deficiency Balances: A repossession can leave you owing the gap between the sale price and the loan. California requires specific written notice before a repossessed car is sold, and a deficiency claim depends on that notice being timely and complete.
- 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 set up payment arrangements.
- Student Loans and Personal Loans: Personal loans and payday loans are generally dischargeable, while most student loans are not, so the firm builds strategies around what can realistically be resolved.
What to Do in the First Days After a Collection Notice, Lawsuit, or Sale Date
Start by sorting what you have received by urgency rather than by amount. A court summons has a response deadline, a notice of sale on a home has a countdown, and a repossession letter has its own clock, while an ordinary collection letter usually does not. Gather every piece of paper, including envelopes, since postmark dates sometimes matter. Write down the last payment you made on each account, because the age of a debt and whether it is time-barred can change your options. One caution: a payment on a debt that has already passed the limitations period does not revive it, and only a signed written acknowledgment can restart the clock, so do not agree to anything over the phone before you know where you stand.
If you have been sued, do not ignore the summons. For a Paramount resident the case is typically heard in the Los Angeles County Superior Court, which operates courthouses throughout the county, including in Norwalk and Compton, and the summons will name the court that has your case. Filing a written answer preserves defenses, including the statute of limitations, which for a written contract or book account is four years and for an oral contract is two. If a judgment has already been entered, the question becomes whether it can be renewed, how much a garnishment may take, and whether bankruptcy would stop enforcement.
For foreclosure, the timeline is more forgiving than most people fear, but it is not unlimited. A sale date cannot be set earlier than three months and twenty days after the notice of default is recorded, the notice of sale must be mailed and posted at least twenty days before the sale, and a missed-payment default can be reinstated until five business days before the sale. For a repossession, the lender generally must give at least fifteen days’ written notice before disposing of the vehicle, and you can ask in writing for a ten-day extension of the redemption period. Bring these dates to your first conversation with an attorney, because the right filing date can matter as much as the right chapter.
If bankruptcy is on the table, your case will be filed in the U.S. Bankruptcy Court for the Central District of California, and the division depends on the zip code of your home address, not a P.O. box. The firm checks this before filing. Common mistakes include paying one creditor heavily just before filing, moving money between accounts without advice, and hiring a petition preparer who can type forms but cannot give legal advice, pick your exemptions, or stand beside you if a trustee raises a problem.
Choosing Between Chapter 7, Chapter 13, and Settlement
Chapter 7 wipes out qualifying unsecured debt and most cases wrap up in roughly four months. Despite its reputation as liquidation, the large majority of clients keep their property, because California’s exemptions protect home equity, vehicles, household goods, tools of the trade, and retirement accounts. California does not allow filers to use the federal exemption list. You choose one of two state systems, and you must use the same system for the whole case. One system offers a homestead exemption that is tied to local home values and adjusted for inflation each year, while the other offers a more modest residence exemption paired with a flexible wildcard that often suits renters. Choosing between them is one of the most consequential decisions in a case, and you generally must have lived in California for at least 730 days to use the state’s exemptions.
Chapter 13 fits people with steady income who need structure, not a wipeout. Your debts are reorganized into one monthly payment over three to five years, and creditors are bound once the court confirms the plan. It tends to work for people who are behind on a mortgage or car loan and want to keep the property, whose income exceeds the Chapter 7 limits, or who owe priority debts such as certain taxes or support arrears that Chapter 7 cannot eliminate.
Debt settlement is the non-court option: the firm negotiates directly with a creditor to resolve a balance for less than you owe. It makes the most sense when the debt is manageable in total and bankruptcy would be more than the situation requires. California’s Rosenthal Act also gives you leverage if a collector has crossed a line, since it covers original creditors as well as third-party collectors, allows recovery of actual damages and, for willful violations, an additional $100 to $1,000, and lets a prevailing consumer recover attorney fees. A suit under the Act must be brought within one year, so timing matters here too.
Paramount Debt Relief Questions, Answered
How fast can bankruptcy stop a garnishment or lawsuit?
The automatic stay takes effect the moment the petition is filed, and creditors must stop collection activity, including lawsuits, wage garnishments, bank levies, repossessions, and foreclosure proceedings. When a sale or levy is close, the firm can often prepare and file very quickly.
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 eliminated 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 house or car if I file?
Most clients keep both. In Chapter 7 the question is whether your equity is protected by the exemption system you choose. If you have more equity than the exemption covers, or you are behind on payments, Chapter 13 lets you keep the property and catch up over time.
Is it worth hiring a lawyer instead of using a debt relief company?
A lawyer can file a court case, raise defenses in a lawsuit, choose exemptions, and appear for you if a creditor or trustee objects. A company or petition preparer generally cannot give legal advice or represent you. Mistakes in a filing can cost you property or your discharge.
Can a debt that is more than four years old still be collected?
A creditor can still ask, but for a written contract or book account the deadline to sue is four years, and for an oral contract it is two. If you are sued after the deadline, you must raise it in a written answer or the court can still enter a judgment. Making a payment on a time-barred debt does not restart the clock.
How long does a judgment last in California?
A money judgment is enforceable for ten years from entry and can be renewed. For medical expense judgments with unpaid principal under $200,000 and personal debt judgments under $50,000, renewal is limited to one time for five years.
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 cannot fire you solely for filing bankruptcy under state and federal law, and your employer is not notified automatically unless it is a creditor or must process garnishment or plan payments.
If I filed bankruptcy before, can I file again?
Yes, subject to waiting periods. The wait is 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.
Will bankruptcy hurt my chances of buying a home later?
A Chapter 7 can remain on your credit report for up to 10 years and a Chapter 13 is typically removed after 7, but the effect on your score fades well before that. Depending on the loan type, buying a home can be possible within a few years after discharge, and many clients see scores begin to recover within the first year.
Can the bank take everything in my account if a creditor levies it?
California protects a set dollar amount in your deposit accounts from levy automatically, and the bank must apply it without you filing anything. That protection does not apply to support debts, wages owed to another person, or debts owed to the state, and it may not cover the balance in your account, so a levy is worth addressing quickly.
Do I have to come into an office to start?
No. Cases can be handled entirely by phone, email, video, and online chat, and virtual consultations are available if that is easier for you.
Serving Paramount Debt Relief Clients Across Southern California
The firm represents clients in Paramount and throughout Los Angeles County, including Long Beach, Lakewood, Compton, Norwalk, Bellflower, Gardena, Cerritos, Signal Hill, Huntington Park, Torrance, and Inglewood. Nearby Orange County communities such as Anaheim, Santa Ana, Garden Grove, Buena Park, Fullerton, Huntington Beach, Westminster, Costa Mesa, Newport Beach, Tustin, La Habra, Placentia, Mission Viejo, and Laguna Niguel are also within the firm’s reach, as are Cypress and the rest of the surrounding area.
Beyond that, the firm serves the San Fernando Valley and Westside, including Sherman Oaks, Van Nuys, Encino, Woodland Hills, Reseda, Northridge, Granada Hills, North Hollywood, Sylmar, Hollywood, and Santa Monica, along with Santa Clarita and the Antelope Valley communities of Lancaster, Palmdale, and Acton. In the Inland Empire and eastern San Gabriel Valley, clients come from Ontario, Rancho Cucamonga, Upland, Fontana, San Bernardino, Pomona, Chino, Chino Hills, Montclair, Claremont, Glendora, West Covina, Riverside, and the Coachella Valley. Wherever you live, your filing division is set by your zip code, and the firm handles that for you.
Talk to a Paramount Debt Relief Attorney Today
If collection calls, a lawsuit, a garnishment, or a sale date is driving your days, speaking with a Paramount debt relief attorney at Wadhwani & Shanfeld costs nothing and puts you in front of a lawyer who can tell you which path fits. Call to speak directly with an attorney, review your situation, and hear every option inside and outside of bankruptcy, including the honest answer if you do not need to file at all. You can handle the whole process remotely, and when a deadline is close, the sooner you call the more choices you will have.
