Sherman Oaks Board Certified Bankruptcy Lawyer
Before you hand your finances to anyone in Sherman Oaks, ask one question: has this lawyer been tested and certified in consumer bankruptcy, or do they simply list it as a practice area? 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 clients across Los Angeles County, Orange County, Riverside County, and San Bernardino County. Finding a Sherman Oaks board certified bankruptcy lawyer matters because the filing decisions you make in the first meeting, especially which exemption system protects your property, are very hard to undo.
Board certification in consumer bankruptcy through the American Board of Certification is a credential held by a small fraction of attorneys nationwide. It signals that a lawyer has been examined on the substance of the field, not just that they file a lot of petitions. For a Valley homeowner with equity, a Ventura Boulevard small business owner with personal guarantees, or a worker whose paycheck is being garnished, the difference shows up in details: how the means test is run, how the homestead is valued, and which debts will and will not survive.
Bankruptcy is a federal right rooted in Article I of the Constitution, not a mark of personal failure. Sherman Oaks filers fall under the San Fernando Valley Division of the U.S. Bankruptcy Court for the Central District of California, and your zip code, not your preference, decides where your case is assigned. Getting the filing right the first time is the whole game.
Why Choose Wadhwani & Shanfeld for Board Certified Bankruptcy Help
The firm serves Sherman Oaks and the surrounding San Fernando Valley, including Encino, Van Nuys, Woodland Hills, and Northridge, as well as the wider Los Angeles, Orange, Riverside, and San Bernardino County region. Clients get direct access to an attorney from the very first call, a free consultation, and fast action when a garnishment, foreclosure sale, or repossession is only days away.
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 matters when you consider how much of modern bankruptcy practice depends on precise electronic filing. 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 shows in how cases are built. The firm files in every division of the Central District bankruptcy court, so your case is not limited by where a lawyer happens to be comfortable appearing. Plans are built around your income, your property, and your goals rather than a one-size-fits-all filing, and answers come in plain English from the first consultation through discharge. You can work with the firm in person or handle everything remotely by phone, email, video, and online chat, and 100% virtual consultations are available.
Debt Situations That Bring Sherman Oaks Residents to a Bankruptcy Specialist
- Credit Card and Medical Debt: Unsecured balances are the classic Chapter 7 target. They can be discharged, and the means test compares your household income to the California median for your household size before accounting for actual expenses.
- Wage Garnishment: On an ordinary judgment, the garnishment is capped at the lesser of 20% of weekly disposable earnings or 40% of the amount by which those earnings exceed 48 times the minimum hourly wage. Biweekly, semimonthly, and monthly paychecks use 96, 104, and 208 times the wage instead, and a higher local minimum wage replaces the state figure. Filing Chapter 7 or Chapter 13 stops most garnishments through the automatic stay.
- Foreclosure and Falling Behind on a Mortgage: Chapter 13 lets you catch up missed payments over three to five years, and in some cases strip off a wholly unsecured second mortgage. This is the typical path for Valley homeowners with equity they want to protect.
- Car Repossession and Deficiency Balances: A repossession deficiency is an unsecured debt that Chapter 7 can discharge, and Chapter 13 can help you keep a car you are behind on.
- Creditor Lawsuits and Judgments: A collection suit does not have to end in a judgment. Filing bankruptcy halts the lawsuit, and a bank levy or garnishment based on a judgment stops as well.
- IRS Tax Debt: Some older income tax debt can be eliminated if it meets specific timing rules, while priority tax debt is usually handled through a Chapter 13 plan or direct representation with the IRS to stop levies and set up payment arrangements.
- Small Business and Personal Guarantee Debt: Business owners along the Valley’s commercial corridors often owe personally on loans and leases, and the firm handles both small business bankruptcy and business debt solutions.
- Student Loans and Second Mortgages: Most student loans generally cannot be discharged, so the firm focuses on student loan debt strategies, and second mortgage settlements can resolve a lien without a full bankruptcy.
What to Do in the First Days After the Collection Pressure Hits
Start by gathering paper. Pull together the last few pay stubs, recent tax returns, a list of every creditor with approximate balances, your mortgage and vehicle loan statements, and anything you have been served with, such as a summons, a notice of default, a notice of sale, or a repossession letter. The dates on those documents drive the schedule, and a lawyer who can see them on day one can usually tell you within one conversation whether you are looking at a quick filing or a slower, more planned one.
If you have been sued, do not let the response deadline pass. Court papers in a collection suit are answered in a written response, and an expired limitations period is a defense you must raise yourself or the court can still enter judgment. In California, a written contract debt can be sued on for four years and an oral contract debt for two. A payment cannot revive a debt that is already time-barred, and only a signed written acknowledgment restarts the clock on a debt that is still within the period. Collection lawsuits against Sherman Oaks residents are typically heard in the Los Angeles County Superior Court, which sits across multiple districts, and a lawyer can tell you which courthouse applies to your case.
If a foreclosure is underway, the timeline is more forgiving than most people expect, but it moves in fixed steps. A sale date cannot be set earlier than three months and 20 days after the notice of default is recorded. The notice of sale must be mailed by registered or certified mail and posted on the property at least 20 days before the sale. You can reinstate a monetary default by paying what is owed until five business days before the sale. If a sale is postponed at least 10 business days, the beneficiary must give you written notice of the new date within 5 business days. If the sale is days away, a bankruptcy filing can stop it immediately.
For repossession, the lender must give at least 15 days’ written notice before disposing of the vehicle (20 days if it is mailed from or to an address outside California), and you can request a 10-day extension of the redemption period in writing. A deficiency claim is only valid if the notice goes out within 60 days of repossession and contains the required items. Do not move money around, pay off friends or relatives, or transfer property before you speak with a lawyer. Those moves can create problems a trustee will later unwind.
Most Sherman Oaks cases are filed in the San Fernando Valley Division of the U.S. Bankruptcy Court for the Central District of California, which serves Sherman Oaks, Encino, Van Nuys, Studio City, Tarzana, and Woodland Hills, among other Valley communities. A few places, such as Lancaster, Palmdale, and Santa Clarita, require checking the zip code before the right division can be confirmed. The division is determined by the street address of your residence, not a P.O. box, so a quick check up front prevents misfiled paperwork.
Exemptions: The Decision That Decides What You Keep
California has opted out of the federal exemption scheme, so every filer chooses between two state systems: the standard California exemptions under CCP section 704, or the alternative set under section 703.140(b). You pick one system for the entire case, and you cannot mix and match. To use California’s exemptions at all, you generally must have lived in the state for at least 730 days.
The section 704 system carries a homestead exemption set by a formula: the greater of a statutory floor or the prior year’s countywide median single-family home price, up to a ceiling that adjusts annually for inflation. In a high-priced county like Los Angeles, that formula often protects a large share of equity for homeowners. The 703.140(b) system works differently. It offers modest fixed dollar amounts for the residence, a vehicle, and tools of the trade, plus a flexible wildcard that can be applied to almost any property. Renters and people with little equity often do better under 703.140(b), while homeowners with meaningful equity usually need the 704 system.
The dollar amounts in both systems are adjusted on a schedule, so the numbers that apply to you depend on when you file. Your attorney should walk through the current figures, your home’s value, your vehicle, your bank accounts, and your retirement accounts before choosing a system. Bank accounts also carry an automatic protection against levy that the bank must apply without you filing a claim, although it does not apply to levies for wages owed to another, support, or debts owed to the state. Choosing wrong can cost you property you would otherwise have kept, and this is exactly where board-certified experience pays off.
Judgments, Time Limits, and Collector Misconduct
A California money judgment can be enforced for 10 years from entry, and the creditor can renew it. For medical expense judgments with unpaid principal under $200,000 and personal debt judgments with unpaid principal under $50,000, renewal is limited to one time, for five years only. That matters if you are being pursued on an older judgment and wondering whether it is nearing the end of its enforceable life. Bankruptcy can often resolve a judgment sooner than waiting it out.
California’s Rosenthal Act also limits what collectors can do, and it covers original creditors as well as third-party collectors, unlike the federal statute. A consumer can recover actual damages, and a court can add $100 to $1,000 if the collector acted willfully and knowingly. A prevailing consumer can also recover reasonable attorney fees, although suits must be brought within one year and only as individual actions. A collector can avoid liability by correcting a curable violation within 15 days after discovering it or receiving written notice. If a collector has crossed a line, your attorney can weigh that against your debt in deciding the best course.
Sherman Oaks Bankruptcy Questions, Answered
How fast can filing stop a garnishment or foreclosure sale?
The automatic stay takes effect the moment the petition is filed. Creditors must stop lawsuits, garnishments, bank levies, repossessions, and foreclosure proceedings. In an emergency, the firm can often prepare and file very quickly to stop a sale or levy.
Will I lose my house or car in Chapter 7?
Most clients keep what they own. Chapter 7 is sometimes called liquidation, but California’s exemptions protect home equity, vehicles, household goods, tools of the trade, and retirement accounts. If your equity exceeds the exemption or you are behind on payments, Chapter 13 lets you keep the property and catch up over time.
What does board certification actually mean for my case?
Board certification through the American Board of Certification means the attorney has met a specialty standard in consumer bankruptcy beyond a general law license. Both founding shareholders at Wadhwani & Shanfeld hold it, which means your case is handled by lawyers examined on exactly the issues that decide outcomes, such as exemptions, the means test, and discharge rules.
Which debts can be wiped out and which cannot?
Credit cards, medical bills, personal loans, payday loans, and deficiency balances after repossession or foreclosure are generally dischargeable. Some older income taxes can be eliminated if they meet timing rules. Child support, alimony, most student loans, most government fines, and debts for injuries caused by drunk driving generally cannot be discharged.
How long will bankruptcy stay on my credit report?
A Chapter 7 can remain on your report for up to 10 years from the filing date, and a Chapter 13 is typically removed after 7 years. The impact on your score fades well before then, and many clients see recovery begin within the first year by using a secured card responsibly and paying every bill on time.
Can I file again if I have filed before?
Yes, subject to waiting periods. You must wait 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 your plan paid enough to unsecured creditors.
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 prohibit an employer from firing you solely because you filed, and state law separately bars firing an employee over wages garnished for a single judgment.
Is it worth hiring a lawyer instead of using a paralegal or document preparer?
A petition preparer can type your information into forms but cannot give legal advice, choose exemptions, or represent you if a trustee or creditor objects. Errors in a filing can cost you property or your discharge, which is why representation by a board-certified bankruptcy attorney is worth considering for anything beyond the simplest case.
What if a collector is suing me on a debt that is several years old?
Check the dates first. A written contract debt generally carries a four-year limit and an oral contract two years, but you have to raise that defense in a written answer. Do not make a payment or sign anything acknowledging the debt before speaking with a lawyer, because a signed written acknowledgment can restart the clock on a debt still within the period.
Do I have to come to an office for the whole process?
No. The firm handles cases fully by phone, email, video, and online chat, and 100% virtual consultations are available. If you prefer to meet in person, that option is available too.
Can bankruptcy deal with an old judgment against me?
Often, yes. A judgment is generally enforceable for 10 years from entry and can be renewed, and bankruptcy can stop active enforcement through the automatic stay. Whether it can be eliminated depends on the underlying debt and how it was reduced to judgment, which is a question to bring to your consultation.
Serving Sherman Oaks and Neighboring Southern California Communities
Wadhwani & Shanfeld represents Sherman Oaks residents and clients across 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 serves the Westside and Hollywood, Santa Monica, and Los Angeles proper, along with Santa Clarita and the Antelope Valley communities of Lancaster, Palmdale, and Acton.
Across Los Angeles County, clients come from Long Beach, Lakewood, Torrance, Compton, Inglewood, Gardena, Norwalk, Bellflower, Paramount, Cerritos, Cypress, Signal Hill, and Huntington Park. In the east, the firm serves Pomona, Claremont, Glendora, West Covina, and the eastern San Gabriel Valley, and extends into the Inland Empire communities of Ontario, Rancho Cucamonga, Upland, Fontana, San Bernardino, Chino, Chino Hills, and Montclair, as well as Riverside and the Coachella Valley. In Orange County, the firm works with 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.
Talk With a Sherman Oaks Board Certified Bankruptcy Attorney
You do not need to wait for a sale date, a levy, or a court deadline before getting answers. Speak directly with a Sherman Oaks board certified bankruptcy attorney at Wadhwani & Shanfeld, review your income, property, and debts, and hear honestly whether Chapter 7, Chapter 13, settlement, or another route gives you the cleanest path forward. Call to schedule your free consultation, in person or entirely by video or phone, and put a certified specialist between you and the collectors.
