San Fernando Valley Bankruptcy Lawyer
The goal in a Valley bankruptcy case is simple to say and hard to do alone: stop the collection pressure, keep what matters most, and walk out with debts that no longer control your paycheck. 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 across the San Fernando Valley and the rest of Los Angeles County. Searching for a San Fernando Valley bankruptcy lawyer usually means something has already gone wrong: a garnishment notice, a summons, a sale date on the house.
Valley filers have a local detail worth knowing early. Bankruptcy cases are assigned to a division by the filer’s home zip code, and the San Fernando Valley Division of the U.S. Bankruptcy Court for the Central District of California sits in Woodland Hills. It serves communities such as Van Nuys, Sherman Oaks, Encino, Northridge, Reseda, North Hollywood, Sylmar, and Tarzana. Getting the division right is a small decision that affects where your case is heard.
Most of the decisions that follow are bigger: which chapter, which exemption system, whether to file now or negotiate first.
Why Choose Wadhwani & Shanfeld for a Valley Bankruptcy Filing
The firm is led by two Board-Certified Specialists in Consumer Bankruptcy, certified through the American Board of Certification, with more than 90 years of combined legal experience across the team. Clients get direct access to an attorney from the first call, a free consultation, and the option to handle the whole case by phone, email, video, or online chat, including 100% virtual consultations. When a garnishment, foreclosure sale, or repossession is days away, the firm acts fast.
Raj Wadhwani, a 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. That court is the one your Valley case will be filed in. Greg Shanfeld, also a 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, so your zip code never limits who can represent you.
Board certification matters here because the choices in a California bankruptcy are technical and hard to undo. Picking the wrong exemption system or the wrong chapter can cost property or a discharge. The firm also handles alternatives to bankruptcy, so the recommendation is based on what fits your numbers rather than the only service on offer.
Debt Situations That Bring Valley Residents to a Bankruptcy Attorney
- Credit Card and Medical Debt: Unsecured balances are the core of most Chapter 7 cases. They can generally be discharged, and filing stops the calls and letters right away.
- Creditor Lawsuits and Judgments: Collection suits over credit cards and personal loans are often filed in the Los Angeles County Superior Court, including its Van Nuys and Chatsworth courthouses. The filing deadline for your response is short, and missing it invites a default judgment.
- Wage Garnishment: Once a creditor has a judgment, it can take a portion of each paycheck. Filing Chapter 7 or Chapter 13 stops most garnishments the moment the case is filed.
- Bank Account Levies: A levy can freeze the account you pay rent from. Some protection applies automatically, but it does not cover every type of debt, and bankruptcy halts the levy entirely.
- Mortgage Default and Foreclosure: Chapter 13 lets homeowners behind on payments keep the house and catch up over three to five years. It can also address a wholly unsecured second mortgage.
- Car Repossession and Deficiencies: Falling behind on a car loan can lead to repossession and a deficiency balance. Chapter 7 can discharge that deficiency, and Chapter 13 can help you keep the vehicle.
- IRS Tax Debt: Some older income tax debt can be discharged if it meets timing rules, and Chapter 13 can organize taxes that Chapter 7 cannot eliminate. The firm also negotiates payment arrangements and levy relief outside of court.
- Small Business Debt: Owners of Valley shops, contracting businesses, and service companies often carry personal guarantees. These can be addressed through small business bankruptcy or negotiated solutions.
What to Do in the First Days After a Summons, Garnishment, or Sale Notice
Start by gathering paper, not worrying. Collect the lawsuit papers, any notice of default or notice of sale, garnishment orders, recent pay stubs, and a list of every debt you can remember. The documents tell an attorney which deadline is closest, and that deadline sets the order of everything else.
If you were served with a collection lawsuit, do not ignore it. The response deadline is short, and a judgment can follow if no answer is filed. Even if the debt is old, an expired limitations period is a defense you must raise in a written answer; the court will not apply it on its own. In California, a written contract debt can generally be sued on for four years and an oral one for two. A payment on a time-barred debt does not revive it, and only a signed written acknowledgment can restart the clock. A lawyer can tell you whether to answer, negotiate, or file bankruptcy.
For foreclosure, learn the calendar. A sale date cannot be set until at least three months and 20 days after the notice of default is recorded, and the notice of sale must be mailed and posted at least 20 days before the sale. You can reinstate a monetary default until five business days before the sale. That window is real but closes quickly, and a bankruptcy filing stops the sale outright.
For a repossessed car, the lender must give at least 15 days’ written notice before disposing of it, and you can ask in writing to extend the redemption period by 10 days. A deficiency claim is allowed only if the notice was properly given within 60 days of repossession.
For garnishment, know the cap: it is the lesser of 20 percent of weekly disposable earnings or 40 percent of the amount by which those earnings exceed 48 times the minimum hourly wage, with different multipliers for biweekly, semimonthly, and monthly pay. You can also ask the court to exempt the portion of your pay needed to support your family. Your employer cannot fire you because of a garnishment on a single judgment.
The mistakes to avoid are paying a creditor out of panic, moving assets, or hiring a petition preparer to type the forms. A preparer cannot give legal advice, choose exemptions, or represent you if a trustee raises a problem. If your home zip code falls in the Valley, your case will most likely go to the San Fernando Valley Division in Woodland Hills, but the zip code check on the court’s locator tool settles it, especially for areas like Santa Clarita, Lancaster, and Palmdale where the assignment needs confirming.
Choosing Between Chapter 7 and Chapter 13 in the Valley
Chapter 7 wipes out qualifying unsecured debt in roughly four months for most cases. 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 name “liquidation,” the vast majority of the firm’s clients keep everything they own.
Chapter 13 fits people with steady income who need structure. Debts are reorganized into one payment over three to five years, and creditors are bound once the court confirms the plan. It makes sense if you are behind on a mortgage or car loan, earn above the Chapter 7 limits, owe priority taxes or support arrears, or have equity beyond what exemptions cover.
California Exemptions: The Decision That Decides What You Keep
California has opted out of the federal exemptions, so you must choose between two state systems for your entire case. One system is built around a homestead exemption, which is tied to the countywide median home price within a statutory floor and ceiling and is adjusted annually for inflation. Los Angeles County prices make this system valuable for many Valley homeowners. The other system offers a smaller residence exemption but a flexible wildcard that often works better for renters, along with set amounts for a vehicle and tools of the trade.
You also generally must have lived in California for at least 730 days to use the state’s exemptions. Dollar amounts in both systems are adjusted on a schedule, so your attorney will run the current figures against your home equity, car, savings, and retirement accounts before you file. Choosing the system is one of the most consequential calls in the case.
Valley Bankruptcy Questions, Answered
How fast does filing stop a garnishment, foreclosure, or lawsuit?
The automatic stay takes effect the moment the petition is filed. Creditors must stop lawsuits, garnishments, levies, repossessions, and foreclosure proceedings. In an emergency, the firm can often prepare and file quickly to stop a sale or levy.
Which court will hear my case if I live in the Valley?
Filing division depends on your home street address zip code. Many Valley communities, including Van Nuys, Sherman Oaks, Encino, Northridge, Reseda, and Woodland Hills, fall within the San Fernando Valley Division in Woodland Hills. Some zip codes, such as parts of Santa Clarita, need to be confirmed with the court’s locator.
Will I lose my house in Chapter 7?
Most clients keep their homes. The question is whether your equity fits within California’s homestead exemption and whether you are current on the mortgage. If you have more equity than the exemption covers or you are behind, Chapter 13 can let you keep the home and catch up over time.
What debts can bankruptcy not erase?
Child support, alimony, most student loans, most government fines, and debts for injuries caused by drunk driving generally survive. Some older income taxes can be discharged if they meet specific timing rules.
Is a bank account protected from a levy?
California automatically shields a set amount per debtor in deposit accounts, and the bank must apply it without a claim being filed. It does not apply to levies for wages owed to another, child or spousal support, or debts owed to the state. The amount is adjusted periodically.
Can a creditor collect on an old judgment?
A California money judgment is enforceable for 10 years from entry and can be renewed. For medical expense judgments and personal debt judgments under the statutory dollar limits, renewal is limited to one time for five years. Bankruptcy can address judgments that are still enforceable.
My debt is several years old. Can they still sue?
Possibly. Written contract and book account claims carry a four-year limitations period. But the defense must be raised in a written answer, or a court can still enter judgment. Do not make a payment to a collector on an old debt without advice, because the wrong move can create problems.
What if a collector broke the rules?
California’s Rosenthal Act covers original creditors as well as third-party collectors. A consumer can recover actual damages, plus an additional $100 to $1,000 for willful and knowing violations, along with attorney fees if successful. The suit must be brought within one year, and a collector can avoid liability by correcting a curable violation within 15 days of learning of it.
Will my employer find out I filed?
Not automatically. They may learn if they are a creditor, if a garnishment must stop, or if Chapter 13 payments come out of your paycheck. California and federal law bar an employer from firing you solely because you filed.
How long after discharge before I can rebuild credit?
Many clients see scores begin recovering within the first year with a secured card, on-time payments, and low balances. Chapter 7 can remain on a credit report for up to 10 years and Chapter 13 typically for 7, though the impact fades sooner. You can file again subject to waiting periods, such as 8 years between Chapter 7 filings.
Do I have to come in to meet the attorney?
No. The firm handles cases by phone, email, video, and online chat, and offers 100% virtual consultations, so you can get answers without leaving home.
Serving San Fernando Valley Bankruptcy Clients and the Surrounding Region
Our work for Valley clients stretches from Sherman Oaks and Encino through Woodland Hills, Reseda, Northridge, and Granada Hills. We also represent people in Van Nuys, North Hollywood, North Hills, Mission Hills, San Fernando, Sylmar, and Hollywood, as well as Santa Monica and the Westside. Further north and east, we serve Santa Clarita, Lancaster, Palmdale, Acton, and the wider Antelope Valley.
The same bankruptcy and debt relief work extends across Los Angeles County, with clients in 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, we help families in Ontario, Rancho Cucamonga, Upland, Fontana, San Bernardino, Riverside, Pomona, Chino, Chino Hills, Montclair, Claremont, Glendora, West Covina, and the Coachella Valley. In Orange County, we serve 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 San Fernando Valley Bankruptcy Attorney Today
You do not need to wait for a sale date or a levy to get answers. Call Wadhwani & Shanfeld for a free consultation and speak directly with a San Fernando Valley bankruptcy attorney about your options inside and outside of court. We will review your income, property, and debts, tell you honestly whether bankruptcy is the right move, and act quickly if a deadline is close.
