San Fernando Valley Chapter 7 Bankruptcy Lawyer
The collection calls start before you finish your coffee, the letter from a law firm sits unopened on the counter, and the paycheck that used to cover rent in Van Nuys or Reseda now has a creditor’s name attached to it. Wadhwani & Shanfeld is a consumer bankruptcy and debt relief law firm that handles Chapter 7, Chapter 13, debt settlement, wage garnishment, foreclosure defense, and creditor lawsuits for families across the San Fernando Valley and the rest of Los Angeles County, along with Orange, Riverside, and San Bernardino Counties.
If you are looking for a San Fernando Valley Chapter 7 bankruptcy lawyer, the first thing worth knowing is where your case will actually be heard. Valley filers generally belong to the San Fernando Valley Division of the U.S. Bankruptcy Court for the Central District of California, which sits in Woodland Hills and covers communities such as Encino, Northridge, Sherman Oaks, North Hollywood, and Sylmar. The division is assigned by the zip code of your street address, not a P.O. box, and a few communities, including Santa Clarita, Lancaster, and Palmdale, need a zip code check before anyone assumes where they land.
Chapter 7 is the filing most Valley residents have in mind: unsecured debts like credit cards, medical bills, and personal loans are wiped out, usually in a matter of months, and the creditors lose the right to collect. Whether it works for you turns on two things, the means test and your property exemptions, and both deserve a careful look before you file.
Why Choose Wadhwani & Shanfeld for Your Valley Chapter 7 Case
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. Together the firm’s attorneys bring more than 90 years of combined legal experience to Chapter 7, Chapter 13, debt settlement, and the creditor disputes that surround them. Clients across Los Angeles, Orange, Riverside, and San Bernardino Counties reach an attorney directly from the very first call, and the whole case can be handled by phone, email, video, or online chat. Consultations are free, and virtual consultations are available if driving across the Valley is the last thing you want to do.
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, which means the court’s filing systems are familiar ground. 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.
That depth matters in Chapter 7 because the outcome is decided before the petition is ever signed: which exemption system to choose, whether the means test is passed, what to do about a car loan or a home with equity. The firm files in every division of the Central District, and when a garnishment, foreclosure sale, or repossession is days away, it moves fast.
Debt Situations That Lead Valley Residents to Chapter 7
- Credit Card Balances: Revolving debt that grew through job loss, reduced hours, or ordinary cost-of-living pressure is the most common reason people file, and it is among the easiest debt to discharge in Chapter 7.
- Medical Bills: An illness or accident can generate balances that no household budget absorbs. These are unsecured and generally dischargeable, and a lawsuit from a medical creditor is a typical trigger.
- Creditor Lawsuits and Judgments: Cases filed in the Los Angeles Superior Court, including the Van Nuys, Chatsworth, and San Fernando courthouses, often end in default judgments when the defendant misses the response deadline. A bankruptcy filing halts the suit and can address judgments already entered.
- Wage Garnishment: Once a creditor holds a judgment, it can take a slice of each paycheck. Filing Chapter 7 stops most garnishments the moment the case is filed through the automatic stay.
- Bank Levies: A levied account can freeze rent money overnight. Bankruptcy stops the levy, and California already shields a set amount in a deposit account from a judgment levy without any claim of exemption.
- Repossession Deficiencies: When a repossessed car sells for less than the loan balance, the lender can pursue the shortfall. That deficiency is unsecured and can be eliminated.
- Payday and Personal Loans: High-rate short-term borrowing tends to snowball, and these balances are generally dischargeable.
- Older Income Tax Debt: Some income tax debt that meets specific timing rules can be wiped out, which is worth reviewing before assuming the IRS cannot be touched.
What to Do Now If Chapter 7 Is on the Table
Start by gathering paperwork: recent pay stubs, the last couple of years of tax returns, bank statements, a list of every creditor with approximate balances, and any court papers you have been served. If a lawsuit has been filed, the response deadline is the one that cannot slip. An expired statute of limitations is only a defense if you raise it in a written answer, and a court can still enter judgment against someone who simply ignores the summons. For written contracts and book accounts, California gives creditors four years to sue; for oral contracts it is two. A payment on a time-barred debt does not revive it, and only a signed written acknowledgment restarts the clock.
Do not pay one creditor in a panic before talking to a lawyer, and do not move property or add names to titles. Both can create problems with the bankruptcy trustee. Call before a sale date or garnishment date passes, because the automatic stay takes effect the moment the petition is filed, and the firm can often prepare an emergency filing quickly.
On the foreclosure side, the clock is more forgiving than most people fear. In California, a trustee’s sale cannot happen sooner than three months and 20 days after the notice of default is recorded, the notice of sale must be mailed and posted at least 20 days before the sale, and a missed monetary default can be reinstated until five business days before the sale. For a repossessed vehicle, the lender must give at least 15 days’ written notice before disposing of it, 20 if the notice is mailed to or from outside California, and you can request a 10-day extension of the redemption period in writing.
Your case will be filed in the division matching your home address. Many Valley zip codes belong to the San Fernando Valley Division in Woodland Hills, while parts of the broader Los Angeles area go to the Los Angeles Division downtown. Cities like Simi Valley and Thousand Oaks go to the Northern Division even though some of those zip codes sit in Los Angeles County. A quick check against the court’s locator avoids a misfiling.
Passing the Means Test and Keeping Your Property
Chapter 7 eligibility starts with the means test. Your household income is compared to the California median for a household your size; if you are under it, you generally qualify, and if you are over, your actual allowed expenses are factored in. If the numbers do not work, Chapter 13 may fit better, since it reorganizes debt into one payment over three to five years and is designed for people with steady income above the Chapter 7 limits.
The word liquidation frightens people, but most of our clients keep everything they own. California does not allow filers to use the federal exemption list. Instead you choose between two state systems, and you must stick with that choice for the entire case. The first, found in the Code of Civil Procedure’s section 704 system, offers a large homestead protection tied to local home prices, with a statutory floor and a ceiling that both adjust annually. The second, the section 703.140(b) system, is built around a smaller residence exemption plus a flexible wildcard that can cover cash, bank accounts, or other assets, and it often suits renters. Its dollar amounts are adjusted every three years.
Exemptions also cover vehicles, household goods, tools of the trade, and retirement accounts. To use California’s exemptions at all, you must have lived in the state at least 730 days. Choosing the right system is one of the most consequential decisions in the case, and it is made with your home equity, car, savings, and tax refund in front of us.
Not everything is erased. Child support, alimony, most student loans, most government fines, and debts for injuries caused by drunk driving survive a Chapter 7 discharge. Garnishment rules also help while you decide: ordinary wage garnishment is capped by statute at the lesser of 20 percent of disposable earnings or a figure tied to minimum wage, and an employer cannot fire you because of a garnishment on a single judgment.
Questions Valley Residents Ask About Chapter 7
How long does a Chapter 7 case take?
Most cases finish in roughly four months from filing to discharge. The stay protecting you from collectors begins the day the petition is filed, long before the discharge arrives.
Will I lose my house or car?
Most clients keep both. In Chapter 7 the question is whether your equity is protected by the exemption system you choose and whether you are current on the loan. If you are behind or have equity beyond the exemption, Chapter 13 can let you keep the property and catch up over time.
What debts can Chapter 7 eliminate?
Credit cards, medical bills, personal and payday loans, and repossession or foreclosure deficiencies are typical. Some older income taxes qualify if they meet timing rules. Support obligations, most student loans, and most government fines generally stay.
Will bankruptcy stop a wage garnishment?
Yes. Filing triggers the automatic stay, which halts garnishments, bank levies, lawsuits, repossessions, and foreclosure proceedings. Your employer is told to stop withholding once the court notice arrives.
Can a creditor still sue me if the debt is old?
Yes, a creditor can file even on a stale debt, but if the limitations period has run, you must raise that defense in a written answer. Courts can enter judgment against someone who does not respond. Making a payment will not revive a time-barred debt.
How long does a judgment against me last?
A California money judgment is enforceable for 10 years from entry and can be renewed. Since a recent law change, judgments for medical expenses under a certain principal amount and personal debt judgments under a lower principal amount can be renewed only once and only for five years. A bankruptcy filing can deal with judgments in many cases before then.
Will my employer find out?
Not automatically. They may learn if they are a creditor or if a garnishment has to stop. California and federal law bar an employer from firing you solely because you filed.
Can I file if I filed bankruptcy before?
Often yes, subject to waiting periods. It 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 the plan paid enough to unsecured creditors.
Is it worth hiring a lawyer instead of a paralegal or filing preparer?
A petition preparer can type information into forms but cannot give legal advice, pick your exemptions, or appear for you if a trustee or creditor objects. Errors can cost you property or your discharge, which is why representation by a bankruptcy attorney matters.
How long does bankruptcy stay on my credit report?
A Chapter 7 can remain for up to 10 years from filing, and Chapter 13 is typically removed after 7. Scores generally begin recovering within a year with a secured card, on-time payments, and low balances.
Do I need to drive to an office to get started?
No. Consultations and the full case can be handled by phone, email, video, or online chat, so you can start from home anywhere in the Valley.
Serving Chapter 7 Clients Across the San Fernando Valley and Beyond
Wadhwani & Shanfeld represents Valley residents from Woodland Hills and Encino through Sherman Oaks, Van Nuys, and Reseda, and into Northridge, Granada Hills, North Hollywood, North Hills, Mission Hills, San Fernando, and Sylmar. The firm also works with clients in Hollywood and Santa Monica on the Westside, in Santa Clarita, and in the Antelope Valley communities of Lancaster, Palmdale, and Acton. Across Los Angeles County the reach continues to Los Angeles, Long Beach, Lakewood, Torrance, Compton, Inglewood, Gardena, Norwalk, Bellflower, Paramount, Cerritos, Signal Hill, Huntington Park, Pomona, Claremont, Glendora, and West Covina.
Beyond Los Angeles County, the firm serves Orange County families in Anaheim, Santa Ana, Garden Grove, Fullerton, Huntington Beach, Costa Mesa, Newport Beach, Mission Viejo, and Laguna Niguel; Inland Empire clients in Ontario, Rancho Cucamonga, Upland, Fontana, San Bernardino, Chino, and Montclair; and Riverside County residents including the Coachella Valley.
Talk With a San Fernando Valley Chapter 7 Attorney Today
You do not need to sit with the stack of unopened letters any longer. Call Wadhwani & Shanfeld for a free consultation, speak directly with a San Fernando Valley Chapter 7 attorney, and get an honest answer about whether Chapter 7, Chapter 13, or a settlement outside of court is the right path. If a garnishment, foreclosure sale, or repossession date is close, say so on the first call and we will move accordingly.
