San Fernando Lawsuits & Judgments Lawyer
A lawsuit from a debt collector does not freeze your options the way many people think it does, and a judgment that has already been entered is not the end of the road either. Wadhwani & Shanfeld is a consumer bankruptcy and debt relief law firm that handles creditor lawsuits, judgments, wage garnishment, bank levies, and the bankruptcy and settlement strategies that stop them, for clients in San Fernando, the surrounding San Fernando Valley, and across Los Angeles, Orange, Riverside, and San Bernardino Counties.
If you are searching for a San Fernando lawsuits & judgments lawyer, you are probably holding a summons, a notice that a judgment was entered, or a letter from your employer about a garnishment order. Each of those situations has its own clock and its own set of tools. A response deadline on a summons works very differently from the ten-year life of a judgment, and the protections on a paycheck work differently from the protections on a bank account. Getting the right tool for the right problem is most of the job.
What a Judgment Lets a Creditor Take, and What Stays Off Limits
A creditor who wins a money judgment against you gains enforcement tools, but California law puts real limits on each one. Wage garnishment is capped. For an ordinary judgment, the creditor can take no more than 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. If you are paid biweekly, semimonthly, or monthly, the multiplier becomes 96, 104, or 208 times the minimum wage. When a local minimum wage is higher than the state rate, the local rate is the one used in the math, which matters for workers across much of the Los Angeles area.
There is also a second path to relief that people rarely hear about. You can ask the court to treat part of your earnings as exempt if you can show that money is needed to support you or your family. Judges look at actual household expenses, so the paperwork you bring matters. California also bars an employer from firing you because your wages are garnished for a single judgment.
Bank accounts work differently. A levy can freeze funds, but California automatically protects a set amount in your deposit accounts per judgment debtor, and the bank is supposed to apply that protection before sending anything to the levying officer. You do not have to file a claim to get it. That protection does not extend to levies for wages owed to someone else, child or spousal support, or debts owed to the state.
Real property is the third target. A judgment creditor can record a lien against a home, and the homestead exemption determines how much equity is protected if the creditor tries to force a sale. California sets that exemption using a formula tied to the county median home price, bounded by a statutory floor and an inflation-adjusted ceiling. Where your equity falls relative to that number often decides whether a lien is a nuisance or a genuine threat.
Why Choose Wadhwani & Shanfeld for Lawsuit and Judgment Defense
Wadhwani & Shanfeld has helped more than 30,000 individuals and families across Southern California deal with debt, and a large share of those people came to us because a creditor had already sued or already won. The firm is led by two founding shareholders, Raj Wadhwani and Greg Shanfeld, both Board-Certified Specialists in Consumer Bankruptcy through the American Board of Certification. Between them and their team, the firm carries more than 90 years of combined legal experience.
Raj Wadhwani, 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 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 matters because a San Fernando resident’s filing division depends on the street address, and the right filing can stop a garnishment or levy the moment it is made.
What this means in practice: you speak to an attorney directly from your first call, the firm acts fast when a garnishment, foreclosure sale, or repossession is days away, and the consultation is free. You can meet by phone, email, video, or online chat, and virtual consultations are fully available. Because the firm handles both bankruptcy and its alternatives, including debt settlement and negotiation with creditors, the recommendation you get is based on what fits your income, property, and goals rather than on the one service a firm happens to sell. As a San Fernando lawsuits and judgments attorney team, we will tell you plainly when bankruptcy is not the best answer.
Situations We See Most Often in Creditor Suits and Judgments
- Credit Card Collection Suits: Banks and debt buyers file in Los Angeles County Superior Court, and many of these cases are won by default because the defendant never filed a written answer. A timely answer preserves defenses like an expired limitations period and forces the plaintiff to prove it actually owns the account.
- Medical Debt Judgments: Hospital and provider bills sent to collections can end in judgments that follow you for years. Recent California changes limit how many times certain smaller medical and personal debt judgments can be renewed, which affects how long they stay a threat.
- Wage Garnishments Already in Progress: When a garnishment order lands on your employer’s desk, the clock on your paycheck is already running. Filing Chapter 7 or Chapter 13 stops most garnishments through the automatic stay, and a claim of exemption can reduce what is taken in the meantime.
- Frozen or Levied Bank Accounts: A levy often arrives with no warning. We look at whether the automatic deposit account protection was applied correctly, whether the funds are exempt for another reason, and whether a bankruptcy filing should come first.
- Repossession Deficiency Suits: After a car is repossessed and sold, the lender may sue for the shortfall. Strict notice rules apply, including a minimum notice period before sale and deadlines for the deficiency notice, and a lender that misses them may lose the right to collect the balance.
- Old Debt Revived by a Lawsuit: A written contract debt generally cannot be sued on after four years, and an oral contract debt after two. A payment does not revive a debt that has already expired, and only a signed written acknowledgment restarts the clock. The defense has to be raised in your answer or it is lost.
- Judgment Liens on a Home: A recorded lien can block a sale or refinance. In many cases bankruptcy can remove the lien to the extent it impairs your exemption, which is a different question from whether you owe the debt.
- Collector Misconduct: California’s Rosenthal Act reaches original creditors as well as third-party collectors. A consumer can recover actual damages, an additional award of $100 to $1,000 for willful and knowing violations, and attorney fees, but suits must be brought within one year.
What to Do in the First Days After Being Sued or Hit With a Judgment
Start with the paper in your hands. A summons has a response deadline, and ignoring it is the single most expensive mistake in debt litigation because the court can enter judgment against you by default. The lawsuit will usually be pending in the Los Angeles County Superior Court, which operates through several districts and courthouses, including the San Fernando courthouse and the Van Nuys courthouse. Which one has your case depends on how the plaintiff filed, so read the caption and the case number carefully and bring the whole packet to your consultation.
Gather the underlying documents before you talk to anyone: the original account statements if you have them, any letters from the collector, the date you last made a payment, and your recent pay stubs and bank statements. The last payment date matters because it helps determine whether the limitations period has run. Do not make a payment or sign anything promising to pay until you have had advice, because a signed written acknowledgment can restart an expired deadline.
If a judgment has already been entered, look for any garnishment notice or levy and note the date. California gives you the right to claim exemptions, but the claim has to be made within the court’s deadlines and supported with real numbers. This is also the point to compare the options side by side: answering a suit and negotiating, settling the debt for less than the balance, claiming exemptions, or filing bankruptcy. For most people with several debts, a single bankruptcy filing resolves the lawsuit and everything behind it at once.
If you decide to file, the case is filed in the U.S. Bankruptcy Court for the Central District of California. Residents of San Fernando, Sylmar, Mission Hills, Pacoima, and the rest of the Valley generally fall within the San Fernando Valley Division, which sits in Woodland Hills, though the division is set by your zip code and should be confirmed before filing. The automatic stay takes effect the moment the petition is filed, halting lawsuits, judgments, bank levies, and wage garnishments. If you are about to hit a hard date, such as a garnishment taking effect on your next paycheck, tell us on the first call so we can move quickly.
How Long a Judgment Lasts and Whether It Can Be Renewed
A California money judgment is enforceable for 10 years from the date it is entered. After that, enforcement stops and liens created by enforcement fall away, unless the creditor files an application to renew, which extends enforceability another 10 years. That makes the entry date one of the most important facts in your file, and it is why old judgments sometimes reappear years later.
Renewal is limited for certain smaller debts. For medical expense judgments with unpaid principal under $200,000 and personal debt judgments with unpaid principal under $50,000, the creditor can renew only once and only for five years. If your judgment falls in one of those categories, the realistic life of the judgment is shorter than it used to be, which can change whether waiting, negotiating, or filing bankruptcy makes sense.
Bankruptcy changes this picture for dischargeable judgments. A Chapter 7 discharge eliminates your personal liability on qualifying unsecured debt, and judgment liens on exempt property can often be removed. A Chapter 13 plan can fold the judgment into a single monthly payment over three to five years. Which route fits depends on your income, your home equity, and the exemption system you choose, since California filers must select one of two state exemption systems for the entire case and must have lived in California long enough to use them.
Lawsuit and Judgment FAQs for San Fernando Residents
How long do I have to respond after being served with a collection lawsuit?
The summons lists your response deadline, and you must file a written answer with the court by that date. Missing it allows the creditor to ask for a default judgment. Bring the summons to a consultation immediately rather than waiting for the last day.
Can a creditor take my entire paycheck?
No. On an ordinary judgment the garnishment is capped at the lesser of 20 percent of weekly disposable earnings or 40 percent of the amount above 48 times the minimum hourly wage, with different multipliers for biweekly, semimonthly, and monthly pay. You can also ask the court to exempt additional earnings you prove are necessary to support your family.
Does filing bankruptcy stop a wage garnishment?
Yes. Filing Chapter 7 or Chapter 13 triggers the automatic stay, which stops most garnishments from the moment the case is filed. Your employer is told to stop withholding, and amounts taken shortly before filing may be recoverable in some situations.
Is any money in my bank account protected from a levy?
Yes. California automatically protects a set amount in deposit accounts per judgment debtor, and the bank applies it without you filing a claim. It does not apply to levies for wages owed to someone else, child or spousal support, or debts owed to the state. Other funds, such as certain benefits, may be exempt for different reasons.
The debt is very old. Can they still sue me?
Often not. A written contract debt generally has a four-year limit and an oral one two years, but the deadline is a defense you must raise in your answer. A payment on a time-barred debt does not revive it, and only a signed written acknowledgment restarts the clock, so be careful what you sign.
How long is a judgment against me good for?
Ten years from entry, and it can be renewed for another ten. Renewal is limited to one five-year extension for certain medical judgments under $200,000 and personal debt judgments under $50,000.
Can bankruptcy remove a judgment lien from my home?
Often it can, to the extent the lien cuts into the equity California protects through the homestead exemption. The amount protected depends on a formula tied to the county median home price, so we compare your equity to the exemption before recommending a filing.
If a collector violated the law, can I sue them?
Possibly. The Rosenthal Act covers original creditors and third-party collectors, and a consumer can recover actual damages, an additional $100 to $1,000 for willful violations, and attorney fees. You have one year to sue, and a collector can avoid liability by correcting a curable violation within 15 days of learning about it.
Will my employer find out about a garnishment, and can they fire me?
Your employer is served with the garnishment order, so yes, they will know. But California law bars an employer from firing you because your wages are garnished for a single judgment. If you file bankruptcy, you cannot be fired solely for filing.
I was sued over a repossessed car. Do I still owe the difference?
Maybe. The lender must send written notice of its intent to dispose of the vehicle at least 15 days in advance, and it can pursue a deficiency only if the notice was given within 60 days of the repossession and contained the required items. If the notice was defective, the deficiency claim may fail.
Do I have to come to an office to get help with a lawsuit?
No. We handle cases fully by phone, email, video, and online chat, and we offer 100 percent virtual consultations. If you prefer to meet in person, that is available too.
Which exemption system should I use if I file?
California offers two systems, and you must pick one for the entire case. One has a large homestead protection that suits homeowners; the other has a flexible wildcard amount that often works better for renters. We run the numbers on both for your property before filing, because the choice is hard to undo.
Serving San Fernando and the Communities Around It
We represent people dealing with lawsuits and judgments in San Fernando itself and across the San Fernando Valley, including Sylmar, Mission Hills, North Hills, Granada Hills, Northridge, Reseda, Van Nuys, Sherman Oaks, Encino, Woodland Hills, and North Hollywood. We also work with clients on the Westside and in Hollywood and Santa Monica, and in Santa Clarita, the Antelope Valley communities of Lancaster, Palmdale, and Acton, and throughout Los Angeles County, including Los Angeles, Long Beach, Lakewood, Torrance, Compton, Inglewood, and Gardena.
Beyond Los Angeles County, the firm serves the Inland Empire and eastern San Gabriel Valley, including Ontario, Rancho Cucamonga, Upland, Fontana, San Bernardino, Pomona, Chino, Chino Hills, Montclair, Claremont, Glendora, and West Covina, along with Riverside and the Coachella Valley. In Orange County we help clients in Anaheim, Santa Ana, Garden Grove, Buena Park, Fullerton, Huntington Beach, Westminster, Costa Mesa, Newport Beach, Tustin, La Habra, Placentia, Mission Viejo, and Laguna Niguel, as well as Norwalk, Bellflower, Paramount, Cerritos, Cypress, Signal Hill, and Huntington Park.
Talk to a San Fernando Lawsuits and Judgments Attorney Today
If you have been served, if a judgment has been entered, or if a garnishment or levy is about to hit, call Wadhwani & Shanfeld for a free consultation and speak directly with an attorney. We will look at the lawsuit, the judgment, your income and property, and every option inside and outside of bankruptcy, and tell you honestly which path gives you the best chance of keeping your paycheck, your accounts, and your home. A San Fernando lawsuits and judgments attorney can only help with the deadlines that have not yet passed, so make the call while you still have room to choose.
