Reseda Credit Card Debt Lawyer
The collection letters keep arriving at your Reseda address, the calls start before you finish your coffee, and now a summons from a card issuer or a debt buyer is sitting on the counter with a response deadline printed on it. Wadhwani & Shanfeld is a consumer bankruptcy and debt relief law firm that handles Chapter 7, Chapter 13, debt settlement, wage garnishment, and creditor lawsuits for clients throughout Reseda, the San Fernando Valley, and the rest of Los Angeles County and Southern California. If you need a Reseda credit card debt lawyer, that is the work we do every day.
Credit card debt is different from most other money problems because it is unsecured. No one can repossess a car or foreclose on a house over a card balance, but a creditor who sues and wins a judgment gains tools that reach your paycheck and your bank account. The balance you can no longer carry may already be owned by a company that bought it for pennies on the dollar, and that company may not be able to prove it owns the debt or that it is still timely enough to sue on. Knowing where you stand on those questions changes which option makes sense.
Why Choose Wadhwani & Shanfeld for Credit Card Debt Relief
Wadhwani & Shanfeld has helped more than 30,000 individuals and families get out from under debt, and the firm is led by two Board-Certified Specialists in Consumer Bankruptcy through the American Board of Certification. Between them, the firm’s lawyers bring more than 90 years of combined legal experience to cases for clients in Reseda and across Los Angeles, Orange, Riverside, and San Bernardino Counties. You can speak directly with an attorney from your first call, consultations are free, and the entire case can be handled by phone, email, video, and online chat if you would rather not travel.
Raj Wadhwani, a founding shareholder and partner and a Southwestern Law School graduate, 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, also a founding shareholder and partner, earned his law degree at the University of Southern California and has handled more than 10,000 bankruptcy cases over three decades. Both hold board certification, a distinction earned by a small fraction of attorneys.
For credit card debt, that depth matters because the right answer is rarely automatic. The firm files in every division of the U.S. Bankruptcy Court for the Central District of California, and it also negotiates settlements and responds to collection suits outside of bankruptcy. That means the recommendation you get is based on your income, your property, and your goals, not on the only service a firm happens to sell. When a garnishment or levy is days away, the firm moves fast.
Credit Card Debt Situations We Handle for Reseda Clients
- Maxed-Out Cards and Minimum-Payment Spirals: Balances that grow faster than you can pay them down, often after a job loss, a reduction in hours, or medical bills that pushed everyday spending onto plastic. Chapter 7 can eliminate qualifying card balances if you pass the means test, which compares your income to the California median for your household size.
- Debt Buyer and Collection Agency Lawsuits: Suits filed by collection firms such as Hunt & Henriques, Reese Law Group, and Patenaude & Felix. A written answer filed on time keeps you in the case; ignoring the summons invites a default judgment.
- Time-Barred Card Debt: Older accounts where the deadline to sue may have expired. California gives creditors four years on written contract claims, but the expired deadline is a defense you have to raise yourself.
- Wage Garnishment After a Judgment: A creditor who wins can instruct your employer to withhold part of each paycheck. Bankruptcy stops most garnishments the moment the case is filed.
- Bank Account Levies: A judgment creditor can freeze funds in your account. California protects a set amount per judgment debtor automatically, and the bank must apply that protection before turning money over.
- Multiple Cards Plus Medical or Personal Loan Debt: Mixed unsecured debt that Chapter 7 can often discharge together, or that Chapter 13 can fold into one monthly payment.
- Steady Income but Too Much Debt: Reseda households with income above the Chapter 7 limits who need structure, where Chapter 13 reorganizes debt over three to five years, or debt settlement negotiates balances down.
- Harassing Collection Tactics: Repeated calls, threats, or misstatements about what a collector can do. California’s Rosenthal Act covers original creditors as well as collectors.
What to Do When You Are Sued Over a Credit Card Balance
Start with the paperwork. Find the summons and complaint, note the date you were served, and do not throw away any collection letters, even the ones that feel like noise. The deadline to respond comes from the summons, and missing it can let the court enter judgment without hearing anything from you. Residents of Reseda are generally in the Los Angeles County Superior Court system, and the firm can tell you which courthouse your case sits in once we see the filing.
Next, figure out whether the debt is actually timely. A suit on a written card agreement must be filed within four years under California law, and an oral contract has two. A payment on an old account cannot revive a debt that has already expired, and only a signed written acknowledgment can restart the clock on one that has not. Because the expired deadline is a defense and not an automatic dismissal, you need to put it in a written answer. This is one of the most common places people lose a winnable case.
Then compare your options side by side. If your debts are largely unsecured and your income is limited, a Chapter 7 filing wipes out qualifying card balances, usually in about four months. If you have steady income and assets to protect, Chapter 13 reorganizes your debts into one payment over three to five years. If bankruptcy is not the right fit, debt settlement lets the firm negotiate with the creditor to resolve the balance for less than you owe. Filing a bankruptcy petition triggers the automatic stay, which halts lawsuits, judgments, bank levies, and wage garnishments at once.
Reseda filers fall within the San Fernando Valley Division of the U.S. Bankruptcy Court for the Central District of California, which sits in Woodland Hills. The division is set by your zip code, and the firm confirms it before filing. Common mistakes to avoid include paying a creditor on an old account before talking to a lawyer, ignoring a summons because you believe the debt is too old, and relying on a petition preparer who can type forms but cannot give legal advice or choose your exemptions.
How Judgments, Garnishments, and Exemptions Work in California
If a creditor wins a judgment, it is enforceable for ten years from the date of entry, and the creditor can renew it. Recent law limits renewal to one time, for five years only, on personal debt judgments with unpaid principal under $50,000. That is a meaningful change for older card judgments, and it is worth checking the dates on anything already entered against you.
Garnishment on an ordinary judgment is capped. The limit is the lesser of 20 percent of your weekly disposable earnings or 40 percent of the amount by which those earnings exceed 48 times the minimum hourly wage, and the multiplier rises for biweekly, semimonthly, and monthly pay periods. If the local minimum wage is higher than the state’s, the higher number is used. You can also ask the court to exempt the part of your earnings that is necessary to support you and your family. Your employer cannot fire you because your wages are garnished for a single judgment.
On bank levies, California automatically protects a fixed amount in your deposit account per judgment debtor, and the bank must apply it without you filing anything. That protection does not apply to levies for support or debts owed to the state. If you file bankruptcy, California’s exemption laws decide what you keep. The state has opted out of the federal exemptions, so you choose between two systems: one with a larger homestead protection for owners, and one with a flexible wildcard that often suits renters. You must pick one system for the entire case, and you generally must have lived in California for 730 days to use them. Most of our clients keep everything they own.
Reseda Credit Card Debt FAQs
Can I be arrested or jailed for not paying a credit card?
No. Unpaid card debt is a civil matter. The real risks are a lawsuit, a judgment, a wage garnishment, and a bank levy, which is why responding to a summons on time matters so much.
Will bankruptcy wipe out all of my credit card debt?
Most credit card balances are unsecured and can be discharged in Chapter 7. Some older income taxes can also be eliminated, but child support, alimony, and most student loans generally cannot. We review every debt you have before recommending a path.
How long do creditors have to sue me for an old card balance?
Four years on a written contract and two on an oral one in California. Remember that the expired deadline is a defense you raise in a written answer; the court will not simply apply it for you.
If I make a small payment on an old debt, does it restart the clock?
A payment cannot revive a debt that is already time-barred. A signed written acknowledgment is what restarts a limitations period that has not yet expired. Talk to us before you send money on an old account.
Is debt settlement better than bankruptcy for credit cards?
It depends on the amount, your income, and whether you are already being sued. Settlement can work when you can fund a lump sum or short payment plan; bankruptcy works when the balances are beyond what negotiation can fix. We handle both, so the recommendation is based on your numbers.
How fast can bankruptcy stop a garnishment?
The automatic stay takes effect the moment the petition is filed, and creditors must stop collection activity. In an emergency, we can often prepare and file quickly to stop a levy or garnishment.
Will my employer find out I filed?
Not automatically. They may learn if they are a creditor, if a garnishment has to stop, or if Chapter 13 payments are deducted from your paycheck. State and federal law prohibit firing you solely because you filed.
What happens if a judgment was entered against me while I did not know about the lawsuit?
You may still have options, including bankruptcy, which halts enforcement and can eliminate the underlying debt. Whether the judgment can be challenged depends on how and when you were served, so bring every document you have to the consultation.
Can a collector sue me and still harass me?
No. California’s Rosenthal Act limits collection conduct and applies to original creditors as well as third-party collectors. A consumer can recover actual damages and, where a collector acted willfully and knowingly, an additional $100 to $1,000, plus reasonable attorney fees. The suit must be brought within one year, and a collector can avoid liability by curing a violation within 15 days of discovering or being told about it.
Do I have to come to an office if I live in Reseda?
No. The firm offers 100% virtual consultations and handles cases fully by phone, email, video, and online chat. In-person meetings are available if you prefer them.
Can I file bankruptcy if I filed before?
Yes, subject to waiting periods. It is eight years between Chapter 7 filings, four years to file Chapter 13 after a Chapter 7, two years between Chapter 13 filings, and generally six years to file Chapter 7 after a Chapter 13, though that last period can be shortened if the plan paid enough to unsecured creditors.
How badly will bankruptcy hurt my credit if my cards are already in collections?
Many filers already have damaged scores from missed payments and collections, so the additional drop is often smaller than expected. Using a secured card responsibly and paying every bill on time lets scores begin recovering within the first year or so.
Serving Reseda and the Surrounding Communities
We represent credit card debt clients starting right in Reseda and spreading outward across the San Fernando Valley. That includes Northridge, Tarzana, Encino, Woodland Hills, Canoga Park, Winnetka, Van Nuys, Sherman Oaks, North Hollywood, Granada Hills, Mission Hills, North Hills, Sylmar, and San Fernando. We also help clients on the Westside and in Hollywood and Santa Monica, and in Santa Clarita and the Antelope Valley communities of Lancaster, Palmdale, and Acton.
Beyond Los Angeles County, the firm serves clients in the Inland Empire, including Ontario, Rancho Cucamonga, Upland, Fontana, San Bernardino, Pomona, Chino, Riverside, and the Coachella Valley, and throughout Orange County, including Anaheim, Santa Ana, Garden Grove, Fullerton, Huntington Beach, Costa Mesa, and Newport Beach. Whether you live in Reseda or farther out, the same attorneys review your case and the same options are on the table.
Talk to a Reseda Credit Card Debt Attorney Today
If a lawsuit, a garnishment, or a stack of unpaid cards is wearing you down, a conversation with a Reseda credit card debt attorney at Wadhwani & Shanfeld costs nothing and commits you to nothing. You will speak directly with a lawyer, hear an honest assessment of your options inside and outside of bankruptcy, and leave knowing what to do next. Call to schedule your free consultation, in person or by video, and get started on your fresh start.
