Sylmar Chapter 7 Bankruptcy Lawyer
When the letters keep coming to a house in Sylmar, Mission Hills, or Pacoima and the credit card minimums no longer make a dent, the question usually narrows to one thing: can this debt simply be erased? Wadhwani & Shanfeld is a consumer bankruptcy and debt relief law firm that handles Chapter 7, Chapter 13, debt settlement, wage garnishment, creditor lawsuits, and foreclosure defense for people in Sylmar, the San Fernando Valley, and across Los Angeles County.
A Sylmar Chapter 7 bankruptcy lawyer is really answering three questions for you. Do you qualify under the means test? Will you keep your home, car, and paycheck? And which of your debts will actually disappear? Chapter 7 wipes out qualifying unsecured debt such as credit cards, medical bills, personal loans, payday loans, and deficiency balances after a repossession, and most cases wrap up in roughly four months. The honest answers depend on your income, what you own, and what you owe, so that is where we start.
Why Choose Wadhwani & Shanfeld for Chapter 7 Filings in Sylmar
Wadhwani & Shanfeld has helped more than 30,000 individuals and families get out from under debt, and the firm’s attorneys bring more than 90 years of combined legal experience to each case. We serve clients in Sylmar and throughout the San Fernando Valley, the Westside, the Inland Empire, the Antelope Valley, and Los Angeles, Orange, Riverside, and San Bernardino Counties. You get direct access to an attorney from your very first call, free consultations, and the option to handle everything by phone, email, video, or online chat, including 100% virtual consultations.
Raj Wadhwani and Greg Shanfeld are the firm’s founding shareholders, and both are Board-Certified Specialists in Consumer Bankruptcy through the American Board of Certification, a distinction held by a small fraction of attorneys nationally. Raj Wadhwani graduated from Southwestern Law School, 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 at the University of Southern California and has handled more than 10,000 bankruptcy cases over three decades.
That depth matters in a Chapter 7 because the outcome often turns on details: which exemption system to choose, how to value your equity, and how to time a filing. A petition preparer can type data into forms, but cannot choose exemptions or defend you if a trustee or creditor objects. Our attorneys do that work, and we can move fast when a garnishment, foreclosure sale, or repossession is days away.
Debt Situations That Lead Sylmar Residents to Chapter 7
- Credit Card Balances: Cards stacked up through rising living costs or a stretch of reduced income are the classic Chapter 7 debt. These are unsecured, so they are generally dischargeable once the case is complete.
- Medical Bills: Hospital and clinic balances from an illness or injury, including accounts already sent to collections, can be wiped out alongside everything else.
- Collection Lawsuits and Judgments: If a collection firm has sued you or already won a judgment, filing triggers the automatic stay, which halts the suit and enforcement, including bank levies and garnishments.
- Wage Garnishment: A garnishment on an ordinary judgment can take up to 20% of weekly disposable earnings, subject to a formula tied to minimum wage. A Chapter 7 filing stops it as of the filing date.
- Repossession Deficiencies: After a car is repossessed and sold, lenders often pursue the leftover balance. That deficiency is an unsecured debt that Chapter 7 can discharge.
- Personal and Payday Loans: Unsecured installment loans and payday advances are treated like credit cards and are usually eliminated.
- Older Income Tax Debt: Some income taxes can be discharged if they satisfy specific timing rules. Recent taxes and most other tax debts usually cannot, so we review the dates carefully.
- Business Debt After a Closure: Small business owners who personally guaranteed loans or cards after a business failed often find Chapter 7 resolves the personal exposure.
What to Do Right Now If Creditors Are Closing In
Start by gathering what a bankruptcy attorney needs: recent pay stubs, last year’s tax return, a list of every creditor, your bank statements, and paperwork on your home, vehicles, and any lawsuits. Do not ignore a summons. A court can enter judgment against you if you do not respond in writing before the deadline, and an expired statute of limitations is only a defense if you raise it. For written contracts the limit is generally four years, and oral contracts two. A payment on a time-barred debt does not revive it; only a signed written acknowledgment can.
If a foreclosure is underway, the timeline gives you more room than most people think. A sale cannot be set until at least 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 it. Repossession has its own clock: the lender must give at least 15 days’ written notice before disposing of the vehicle, and you can ask in writing for a 10-day extension of the redemption period. Call before those windows close, because a filing stops all of it immediately.
Your case will be filed in the U.S. Bankruptcy Court for the Central District of California. Filing division is based on the zip code of your street address, and Sylmar is on the court’s San Fernando Valley Division list, which sits in Woodland Hills. Our firm files in every division of the court, so you will not need to figure this out yourself. After filing, you will attend a short meeting of creditors with a trustee, and our attorneys prepare you for it. Two mistakes to avoid: paying back relatives right before filing, and moving assets around. Both can create serious problems with the trustee, so ask us before you do anything with money or property.
Keeping Your Home, Car, and Paycheck in a Chapter 7
Although Chapter 7 is called liquidation, the vast majority of our clients keep everything they own. California has opted out of the federal exemptions and gives filers a choice between two state systems. The first, under CCP section 704, offers a substantial homestead exemption tied to local home prices, which is the better route for most homeowners. The second, under section 703.140(b), is smaller on home equity but includes a flexible wildcard that often suits renters. You must pick one system for your whole case, and you generally must have lived in California for at least 730 days to use them. These dollar amounts are adjusted periodically, so we confirm the current figures at the time of filing.
Equity is the key question for homeowners. If your equity is covered by the homestead exemption and you are current on the mortgage, you keep the house. If you have more equity than the exemption protects, or you are behind on payments, Chapter 13 may be the better fit because it lets you keep the property and catch up over time. Vehicles, household goods, tools of the trade, and retirement accounts are also protected under California law, and we work through every available exemption before you file.
Sylmar Chapter 7 Bankruptcy Questions, Answered
How do I know if I qualify for Chapter 7?
Qualification runs through the means test. It compares your household income to the California median for a household of your size, then accounts for your actual allowed expenses. If your income is above the median, you may still qualify after expenses are factored in; if not, Chapter 13 is usually the alternative.
How long does a Chapter 7 case take?
Most cases are completed in roughly four months from filing to discharge. The automatic stay, however, protects you from the day the petition is filed.
Will I lose my house or car?
Most clients do not. Whether you keep a home depends on whether your equity fits within the homestead exemption and whether you stay current on the mortgage. Vehicles are protected up to the exemption amount, and a car loan you want to keep generally requires staying current on payments.
Which debts survive a Chapter 7?
Child support, alimony, most student loans, most government fines, and debts for injuries caused by drunk driving generally cannot be discharged. Recent income taxes usually survive as well.
Can I file Chapter 7 if I have filed before?
Yes, subject to waiting periods: 8 years between Chapter 7 filings, and generally 6 years to file Chapter 7 after a Chapter 13, though that can be shortened if your Chapter 13 plan paid enough to unsecured creditors.
Will my employer find out?
Not automatically. They may learn if they are a creditor or if a garnishment has to stop. Employers cannot fire you solely for filing bankruptcy, and California law also bars firing an employee over wages garnished for a single judgment.
How long does a Chapter 7 stay on my credit report?
Up to 10 years from the filing date. Its effect on your score fades well before then, and many clients see recovery begin within the first year with a secured card and on-time payments.
Does the bank freeze my account if a creditor levies it?
If a creditor with a judgment levies your bank account, California automatically shields a set amount in deposit accounts without you filing a claim, though it does not apply to levies for support or debts owed to the state. A Chapter 7 filing stops the levy altogether.
A debt collector is violating the rules. Can I do anything besides file?
Possibly. California’s Rosenthal Act covers original creditors as well as collectors, lets you recover actual damages plus $100 to $1,000 for willful and knowing violations, and allows attorney fees if you prevail. Suits must be brought within one year, so tell us early.
Is a 10-year-old judgment still collectible?
A California money judgment is generally enforceable for 10 years and can be renewed. Recent law limits renewal to one time, for five years, for medical expense judgments under $200,000 and personal debt judgments under $50,000. Bring us the paperwork and we will check where it stands.
Can I handle everything without driving to an office?
Yes. We handle cases fully by phone, email, video, and online chat, and offer 100% virtual consultations for clients anywhere we serve.
Serving Sylmar and Neighboring Chapter 7 Clients Across Southern California
From Sylmar, we work with clients throughout the San Fernando Valley, including San Fernando, Mission Hills, North Hills, Granada Hills, Northridge, Reseda, Encino, Woodland Hills, Van Nuys, Sherman Oaks, and North Hollywood. We also reach into Hollywood and Santa Monica on the Westside, and into Santa Clarita, Lancaster, Palmdale, Acton, and the Antelope Valley.
Across Los Angeles County, we serve Los Angeles, Long Beach, Lakewood, Torrance, Compton, Inglewood, Gardena, Norwalk, Bellflower, Paramount, Cerritos, Cypress, Signal Hill, Huntington Park, Pomona, Claremont, Glendora, and West Covina. In the Inland Empire we help clients in Ontario, Rancho Cucamonga, Upland, Fontana, San Bernardino, Chino, Chino Hills, Montclair, Riverside, and the Coachella Valley, and in Orange County 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 to a Sylmar Chapter 7 Bankruptcy Attorney Today
You do not need to wait until a sale date or a court deadline is on the calendar. A Sylmar Chapter 7 bankruptcy attorney at Wadhwani & Shanfeld can review your income, property, and debts, tell you honestly whether Chapter 7, Chapter 13, or a settlement fits best, and act quickly if a garnishment, foreclosure, or repossession is close. Call us for a free consultation and speak directly with an attorney, by phone, video, or however works for you.
