Sherman Oaks Bankruptcy Lawyer
Wadhwani & Shanfeld helps people in Sherman Oaks and across Los Angeles, Orange, Riverside, and San Bernardino Counties get out from under credit card balances, medical bills, personal loans, mortgage arrears, wage garnishments, and tax debt.
Residents of the San Fernando Valley tend to arrive with a specific pressure point: a lawsuit from a collection firm with a response deadline, a paycheck that is suddenly short, a bank account that was frozen, or a foreclosure notice on a home with real equity. Each of those points to a different answer. Some people need Chapter 7, some need Chapter 13, and some are better served by a negotiated settlement or by doing nothing but answering a complaint correctly.
The decisions that matter most are made early: which chapter to file, which of California’s two exemption systems to use, and whether to file now or wait. Those choices are hard to undo once a petition is on file, so they deserve careful attention before anything is signed.
Why Choose Wadhwani & Shanfeld for Your Sherman Oaks Bankruptcy Case
Wadhwani & Shanfeld is led by two founding shareholders who are both Board-Certified Specialists in Consumer Bankruptcy through the American Board of Certification. 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. Together the firm’s attorneys carry more than 90 years of combined legal experience.
For a Sherman Oaks filer, that history matters in practical ways. Your case will be filed in the U.S. Bankruptcy Court for the Central District of California, and the firm files in every division of that court. Sherman Oaks is among the communities assigned to the San Fernando Valley Division, so the paperwork, trustee expectations, and local procedures are familiar territory to the people handling your file.
The firm gives clients direct access to an attorney from the first call, acts fast when a garnishment, foreclosure sale, or repossession is days away, and builds a plan around your income, property, and goals rather than a one-size-fits-all filing. Consultations are free, and the firm handles cases fully by phone, email, video, and online chat, with 100% virtual consultations available. Because it also handles debt settlement, loan modification, IRS tax debt, and creditor lawsuits, you get a recommendation based on what fits your situation, including the occasional recommendation not to file at all.
Debt Situations That Bring Sherman Oaks Residents to a Bankruptcy Attorney
- Credit Card and Medical Debt: Unsecured balances are the most common reason for a Chapter 7 filing. These debts are generally dischargeable, and a Chapter 7 case usually wraps up in roughly four months if you pass the means test.
- Collection Lawsuits: Once a creditor sues and wins a judgment, it can levy bank accounts and garnish wages. A bankruptcy filing triggers the automatic stay, which halts the lawsuit and most enforcement the moment the petition is filed.
- Wage Garnishment: A garnishment on an ordinary judgment is limited by statute, but even the capped amount can break a household budget. Filing Chapter 7 or Chapter 13 stops most garnishments.
- Mortgage Arrears and Foreclosure: Chapter 13 lets you catch up on missed payments over three to five years while keeping the home, and it can halt a scheduled sale. In some cases a wholly unsecured second mortgage can be stripped off.
- Car Loans and Repossession: Chapter 13 can help you keep a vehicle you are behind on, while Chapter 7 can eliminate a deficiency balance left after a repossession.
- 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 arrange payment plans.
- Personal Loans and Second Mortgages: Unsecured personal loans are usually dischargeable, and second mortgages can sometimes be settled for less than the balance outside of bankruptcy.
- Small Business Debt: Self-employed Valley residents and small business owners often carry personal guarantees, so business debt and personal debt need to be handled together.
What to Do Now if Creditors Are Closing In
Start by sorting your paper into two piles: anything with a date on it and everything else. A summons and complaint carries a response deadline that does not wait for you to decide about bankruptcy. A notice of default, a notice of sale, a repossession notice, and a garnishment order each start their own clock. Bring all of it to your consultation, along with recent pay stubs, bank statements, your last tax return, a list of what you own, and your mortgage or lease paperwork.
Do not ignore a collection lawsuit. If a creditor sues and you never file a written answer, the court can enter judgment against you by default. That matters even when the debt looks old. In California, a written contract debt generally carries a four-year limitations period and an oral contract debt carries two, but the expired deadline is a defense you must raise in an answer, and a court can still enter judgment if you stay silent. A payment on a time-barred debt does not revive it, and only a signed written acknowledgment restarts the clock. Whether to answer, negotiate, or file bankruptcy is a decision to make with an attorney before your response date.
If a foreclosure is underway, the timeline gives you more room than most people realize. A sale cannot be set until roughly 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 monetary default can generally be cured until five business days before the sale date. Still, the closer the date, the fewer options remain, so call early. If you are behind on a car loan, the lender must give written notice of its intent to dispose of a repossessed vehicle, generally at least 15 days, and you can request that the redemption period be extended by 10 days.
Protect your bank account and paycheck while you decide. California automatically shields a set amount in a deposit account from a levy without any claim of exemption, but that protection does not reach every kind of debt, such as child support or debts owed to the state. If your wages are being garnished, you may also be able to claim an exemption for the portion of earnings needed to support yourself and your family.
Your case would be filed with the U.S. Bankruptcy Court for the Central District of California. The court assigns the division by the zip code of your residence, using a street address rather than a P.O. box, and Sherman Oaks falls within the San Fernando Valley Division, which sits in Woodland Hills. A creditor lawsuit, by contrast, may be sitting in Los Angeles County Superior Court, which operates through a number of geographic districts and courthouses, including one in Van Nuys. Do not make payments on old debts, move assets, or favor one creditor over another before you have spoken with a lawyer, since those moves can create problems in a later filing.
Keeping Your Home, Car, and Savings Under California’s Exemption Rules
The word “liquidation” scares people, but California exemption law is the reason most Chapter 7 filers keep everything they own. California has opted out of the federal exemption scheme, so you choose between two state systems for the whole case. You cannot mix and match. One system, found in the main exemption chapter of the Code of Civil Procedure, offers a substantial homestead exemption and tends to suit homeowners with equity. The other, in section 703.140(b), is built around a flexible wildcard and often works better for renters or people with little home equity.
The homestead amount is no longer a fixed tiered figure. It is tied to the prior year’s countywide median single-family home price, subject to a statutory floor and a ceiling that are adjusted annually for inflation. In a county where home values run high, that can mean a large amount of protected equity, which is why many Sherman Oaks homeowners can file Chapter 7 and keep the house as long as they stay current on the mortgage. Other exemptions cover vehicles, household goods, tools of the trade, and retirement accounts, and the dollar amounts in the second system are indexed and updated on a schedule, so the current numbers should be confirmed at your consultation rather than assumed.
To use California’s exemptions, you generally must have lived in the state for at least 730 days before filing. People who recently moved here should raise that early. Picking the wrong system, or overlooking an asset, can cost you property, which is also why a bankruptcy petition preparer who types forms but cannot choose exemptions or represent you is a poor substitute for a lawyer.
Chapter 7 or Chapter 13: Choosing the Right Filing
Chapter 7 is built for people with limited income who want qualifying unsecured debt wiped out quickly. You must pass the means test, which compares your household income to the California median for your household size and then looks at actual expenses. Chapter 13 is built for people with steady income who need structure: your debts are reorganized into one monthly payment over three to five years, and creditors are bound once the court confirms the plan. It fits best when you are behind on a mortgage or car loan, earn too much for Chapter 7, owe priority taxes or support arrears, or have equity beyond what exemptions protect.
Prior filings change the calendar. You must wait eight years between Chapter 7 cases, four years to file Chapter 13 after a Chapter 7, two years between Chapter 13 cases, and generally six years to file Chapter 7 after a Chapter 13, though that last period can be shortened if your plan paid enough to unsecured creditors. Child support, alimony, most student loans, most government fines, and debts from drunk-driving injuries generally survive discharge.
Questions Sherman Oaks Filers Ask About Bankruptcy
How fast can a bankruptcy filing stop a garnishment or lawsuit?
The automatic stay takes effect the moment the petition is filed. Creditors must stop collection activity, including lawsuits, bank levies, wage garnishments, repossessions, and foreclosure proceedings. In an emergency, the firm can often prepare and file a case very quickly.
Will I lose my house if I file?
Most clients keep their homes. In Chapter 7, 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 on payments, Chapter 13 lets you keep the home and catch up over time.
What debts can bankruptcy eliminate?
Most unsecured debts, including credit cards, medical bills, personal loans, payday loans, and deficiency balances after a repossession or foreclosure. Some older income taxes can also be discharged if they meet specific timing rules.
Do I need to come into an office?
No. The firm handles cases fully by phone, email, video, and online chat, and offers 100% virtual consultations. In-person meetings are available if you prefer them.
Will my employer find out I filed?
Not automatically. An employer might learn of it if it is a creditor, if it has been garnishing your wages and must stop, or if Chapter 13 payments are deducted from your paycheck. California and federal law prohibit an employer from firing you solely because you filed.
How long does bankruptcy stay on my credit report?
A Chapter 7 can remain for up to 10 years from the filing date, and the credit bureaus typically remove a Chapter 13 after 7 years. The effect on your score fades well before those dates, and many clients see recovery begin within the first year with responsible use of a secured card.
A collector sued me over a debt from years ago. Is it too late for them to collect?
Possibly, but you have to say so. The limitations period for a written contract is four years and for an oral contract is two, but it is a defense you must raise in a written answer. If you do not respond, the court can still enter a judgment. Do not assume an old debt cannot be collected.
How long does a judgment against me last?
A California money judgment is enforceable for 10 years from entry and can be renewed. For judgments on personal debts with unpaid principal under $50,000 and medical expense judgments under $200,000, renewal is limited to one time for five years. A judgment can follow you for a long time, which is one reason bankruptcy is worth evaluating.
Can a collector violate the law even if I really owe the money?
Yes. California’s Rosenthal Act covers original creditors as well as third-party collectors, and a consumer can recover actual damages, plus an additional $100 to $1,000 if the violation was willful and knowing, 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. Tell your attorney about harassing calls or false statements.
Is it worth hiring a lawyer for a small amount of debt?
Sometimes the answer is that you do not need to file at all. A short consultation can show whether a settlement, a properly filed answer to a lawsuit, or a wait-and-see approach makes more sense than a bankruptcy. The firm will tell you honestly if bankruptcy is not the best path.
If I live in Sherman Oaks, where is my bankruptcy case heard?
Bankruptcy cases are assigned to a division of the Central District of California by the debtor’s zip code. Sherman Oaks is among the communities served by the San Fernando Valley Division. A lawyer can confirm the assignment before filing.
Bankruptcy Help Across Sherman Oaks and the San Fernando Valley
Wadhwani & Shanfeld represents clients throughout Sherman Oaks and the rest of the San Fernando Valley, including Van Nuys, Encino, Woodland Hills, Reseda, Northridge, Granada Hills, North Hollywood, North Hills, Mission Hills, San Fernando, and Sylmar. The firm also works with clients on the Westside and in Hollywood and Santa Monica, and throughout Los Angeles County in communities such as Los Angeles, Santa Clarita, Long Beach, Lakewood, Torrance, Compton, Inglewood, Lancaster, Palmdale, and the Antelope Valley, including Acton.
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, West Covina, and Riverside and the Coachella Valley. In Orange County, it serves Anaheim, Santa Ana, Garden Grove, Buena Park, Fullerton, Huntington Beach, Westminster, Costa Mesa, Newport Beach, Tustin, La Habra, Placentia, Mission Viejo, and Laguna Niguel, along with Norwalk, Bellflower, Paramount, Gardena, Cerritos, Cypress, Signal Hill, and Huntington Park.
Talk With a Sherman Oaks Bankruptcy Attorney Today
If a lawsuit, garnishment, foreclosure notice, or stack of collection letters has you weighing your choices, call Wadhwani & Shanfeld for a free consultation and speak directly with an attorney. A Sherman Oaks bankruptcy attorney from the firm will review your income, property, and debts, explain every option inside and outside of bankruptcy, and tell you plainly which path gives you the best chance at a fresh start.
You can handle your entire case remotely by phone, email, video, or online chat. Call today, and if a sale date, court date, or response deadline is close, say so right away so the firm can move on it.
