Tarzana Chapter 7 Bankruptcy Lawyer
Wadhwani & Shanfeld is a consumer bankruptcy and debt relief law firm that helps Tarzana residents, and families across Los Angeles County and the wider Southern California region, wipe out unsecured debt and stop collection activity. If you are searching for a Tarzana Chapter 7 bankruptcy lawyer, you are probably dealing with a specific pressure: a garnished paycheck, a levied bank account, a lawsuit from a collection firm, or a stack of letters you have stopped opening.
Tarzana sits in the San Fernando Valley, and a Chapter 7 case filed by a Tarzana resident is handled by the San Fernando Valley Division of the U.S. Bankruptcy Court for the Central District of California, which sits in Woodland Hills. That matters in practice. The division where you file is determined by your home zip code, the trustee assigned to your case reviews your paperwork and holds a short creditors’ meeting, and in the large majority of consumer cases the process moves quickly once the petition is accurate and complete. Most Chapter 7 cases wrap up in roughly four months.
The question that decides whether Chapter 7 works for you is rarely “can I discharge this debt.” It is whether you pass the means test and whether the property you own is protected by California exemptions. Those two issues are where an attorney’s work is concentrated, and where mistakes by do-it-yourself filers tend to be costly.
What a Chapter 7 Attorney Does Before and After Your Case Is Filed
The petition itself is the smallest part of the work. Before anything is filed, a Tarzana Chapter 7 attorney reconstructs your financial picture: six months of gross income for the means test, a household-size comparison against the California median, a line-by-line review of expenses, and a hard look at every asset, including bank accounts, a vehicle, tax refunds, retirement funds, and any equity in a home or condo. We also check for transfers made shortly before filing, such as repaying a relative or retitling a car, because those can draw trustee scrutiny and are far easier to address before the petition than after.
Exemption planning is the heart of the preparation. California does not use the federal exemption scheme; the state has opted out, so you choose one of two state systems for the whole case. One system carries a substantial homestead protection that tracks local home prices, and it generally suits homeowners with meaningful equity. The other is a more modest set of dollar-limited exemptions with a flexible wildcard that can be applied to cash, a vehicle, or other property, and it often works better for renters or people with little home equity. You cannot mix and match, and you generally must have lived in California for at least 730 days to use the state’s exemptions. Our attorneys run the numbers both ways and choose the system that keeps the most of your property.
After filing, the work continues. We prepare you for the creditors’ meeting so you know what the trustee will ask and which documents to bring. We respond to trustee requests for pay stubs, bank statements, and tax returns. If a creditor objects to the discharge of a particular debt, or a trustee questions an exemption, we handle it. A bankruptcy petition preparer or notary can type numbers into forms, but cannot advise you on exemptions or stand with you when a problem arises, and that is when representation earns its value.
Why Choose Wadhwani & Shanfeld for Chapter 7 Cases
Wadhwani & Shanfeld is led by two Board-Certified Specialists in Consumer Bankruptcy, certified through the American Board of Certification, a credential held by only a small fraction of attorneys nationwide. Raj Wadhwani, a founding shareholder and partner and 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, 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. Together the firm brings more than 90 years of combined legal experience to consumer debt cases.
For a Tarzana client, that experience translates into several concrete things. The firm files in every division of the U.S. Bankruptcy Court for the Central District of California, including the San Fernando Valley Division where your case will be heard. You get direct access to an attorney from your very first call, with no screening layer standing between you and a lawyer who can tell you whether Chapter 7 fits. When a garnishment, foreclosure sale, or repossession is only days away, the firm acts fast to get a case on file and the automatic stay in place. The firm also handles Chapter 13, debt settlement, foreclosure defense, wage garnishment, creditor lawsuits, IRS tax debt, student loan debt, and small business bankruptcy, so the recommendation you receive is based on what works, not on the only service a firm happens to sell. Consultations are free, and the entire case can be handled by phone, email, video, and online chat, with 100% virtual consultations available.
Debt Situations That Lead Tarzana Residents to Chapter 7
- Credit Card Balances: Revolving balances that grew after a reduction in hours, a divorce, or a stretch of high living costs are the most common reason people file. These are unsecured and generally dischargeable, and a sued-on card debt can be wiped out along with the lawsuit it produced.
- Medical Bills: Unpaid hospital, surgery, and ambulance bills discharge like other unsecured debt. Medical judgments are a frequent source of garnishments, and Chapter 7 ends them.
- Wage Garnishment: Once a creditor wins a judgment, it can take a portion of your paycheck, generally capped at the lesser of 20 percent of weekly disposable earnings or a figure tied to the minimum wage. Filing Chapter 7 triggers the automatic stay, which halts most garnishments at the moment of filing.
- Levied Bank Accounts: A creditor with a judgment can freeze and seize account funds. California shields a set amount in a deposit account automatically, but that cushion is modest, and bankruptcy stops the levy altogether.
- Repossession Deficiencies: After a lender repossesses and sells a car, it can sue for the shortfall. That deficiency balance is unsecured and dischargeable, and we also check whether the lender followed the notice rules that protect you.
- Personal and Payday Loans: Unsecured loans, including high-interest short-term lenders, are typically eliminated in Chapter 7, which can break a cycle of borrowing to cover earlier loans.
- Older Income Tax Debt: Some income taxes can be discharged if they satisfy specific timing rules; recent taxes and payroll taxes generally cannot, and we review the tax history before recommending a chapter.
- Collection Lawsuits and Judgments: A judgment is enforceable in California for ten years and can be renewed, so a creditor can come back long after the original suit. Chapter 7 can resolve both pending suits and judgments already entered.
Steps to Take When Creditors Are Closing In
If you have been served with a lawsuit, read the response deadline on the summons and do not let it pass without speaking to an attorney. In California, the statute of limitations on a written contract debt is four years and on an oral contract two years, but that defense is not automatic: you generally must raise it in a written answer, or a court can still enter judgment against you. A payment on a time-barred debt does not revive it, and only a signed written acknowledgment restarts the clock. Collection suits against Tarzana residents are typically filed in the Los Angeles County Superior Court, and a default judgment can lead to garnishment or a bank levy quickly, so the response window is not one to gamble with.
Gather your documents before the consultation: recent pay stubs, the last two years of tax returns, statements for every bank account, a list of creditors with approximate balances, vehicle titles or loan statements, and any court papers or collection letters you have received. Do not move money, pay back a friend or family member, or transfer property in the weeks before filing. Those actions can be unwound by a trustee and sometimes create bigger problems than the debt itself. Also avoid running up new charges on cards you plan to discharge, and do not take cash advances, since purchases and advances made shortly before filing can be challenged as non-dischargeable.
If a deadline is imminent, tell us immediately. A foreclosure sale 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, so there is often more time than people fear, but not unlimited time. A repossessed car owner is entitled to written notice at least 15 days before the vehicle is sold. A wage garnishment or bank levy can be stopped by filing. Because the automatic stay takes effect the moment the petition is filed, speed in that window can make the difference between losing a paycheck or a car and keeping both. Chapter 7 does not eliminate a lien on a home or car you want to keep, so if you are behind on a mortgage or auto loan, we will explain whether Chapter 13 would serve you better.
Frequently Asked Questions About Chapter 7 in Tarzana
Which bankruptcy court will handle my Tarzana case?
Tarzana is among the communities served by the San Fernando Valley Division of the U.S. Bankruptcy Court for the Central District of California, located in Woodland Hills. The division is assigned based on the zip code of your street address, not a P.O. box, so we confirm it against the court’s locator before filing.
Do I qualify for Chapter 7?
Eligibility turns on the means test, which compares your household income to the California median for a household of your size and then accounts for allowed expenses. If your income is above the median, you may still qualify after expenses are factored in. If you do not, Chapter 13 is usually the alternative.
Will I lose my house or car in Chapter 7?
Most of our clients keep everything they own. California exemption laws protect home equity, vehicles, household goods, tools of the trade, and retirement accounts, and we work through every available exemption before you file. If your equity exceeds what the exemption covers or you are behind on payments, Chapter 13 may be the better path for keeping the property.
What debts survive 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. Most credit card debt, medical bills, personal loans, and deficiency balances after a repossession are eliminated.
How fast does the automatic stay stop collection?
Immediately upon filing. Creditors must stop calls, lawsuits, garnishments, and levies once the petition is filed. In an emergency we can often prepare and file quickly to stop a sale or levy.
Can I file Chapter 7 if I have filed before?
Yes, subject to waiting periods. You must wait 8 years between Chapter 7 filings, 4 years to file Chapter 7… or rather, 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 Chapter 13 plan paid enough to unsecured creditors.
My wages are already being garnished. Can bankruptcy stop it even if the judgment is final?
Yes. The automatic stay halts most garnishments when the case is filed, even on a judgment that has already been entered. We notify the employer and creditor so deductions stop, and the underlying debt can be discharged if it qualifies.
Is it worth hiring a lawyer if I have few assets?
Often yes. A no-asset case still requires exemptions to be claimed correctly, the means test to be computed accurately, and every creditor to be listed. An omitted debt or an error can cost you a discharge or property, and a petition preparer cannot advise you on any of it or represent you if a trustee raises a question.
Will my employer find out I filed?
Not automatically. They may learn of it if they are a creditor or if a garnishment must stop. Federal and California law prohibit an employer from firing you solely because you filed for bankruptcy, and California separately bars firing over a garnishment on a single judgment.
How long will the bankruptcy appear on my credit report?
A Chapter 7 case can remain on your credit report for up to 10 years from the filing date, though its effect on your score fades well before then. Many clients begin rebuilding within the first year with a secured card and on-time payments.
Do I have to come into an office to file?
No. We handle cases fully by phone, email, video, and online chat for clients anywhere in Southern California, and in-person meetings are available if you prefer them.
Serving Tarzana Chapter 7 Clients Across Los Angeles County and Beyond
Starting with Tarzana and the surrounding San Fernando Valley, our attorneys represent clients in Encino, Woodland Hills, Reseda, Northridge, Granada Hills, North Hollywood, North Hills, Mission Hills, San Fernando, Sylmar, Sherman Oaks, and Van Nuys. We also work with residents of Hollywood and the Westside, including Santa Monica, as well as Santa Clarita and the Antelope Valley communities of Lancaster, Palmdale, and Acton.
Across the rest of Los Angeles County, we serve clients in Los Angeles, Long Beach, Lakewood, Torrance, Compton, Inglewood, Gardena, Norwalk, Bellflower, Paramount, Cerritos, Signal Hill, Huntington Park, and Pomona, along with West Covina, Glendora, and Claremont in the eastern San Gabriel Valley. In the Inland Empire, our Chapter 7 clients come from Ontario, Rancho Cucamonga, Upland, Fontana, San Bernardino, Chino, Chino Hills, Montclair, Riverside, 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, Cypress, Mission Viejo, and Laguna Niguel.
Talk With a Tarzana Chapter 7 Bankruptcy Attorney Today
You do not have to keep absorbing collection calls, garnishments, and court deadlines while you work out whether bankruptcy makes sense. A Tarzana Chapter 7 bankruptcy attorney at Wadhwani & Shanfeld can review your income, property, and debts, tell you honestly whether Chapter 7, Chapter 13, or a solution outside of court gives you the best result, and move quickly if a sale, levy, or garnishment is close. Call to schedule your free consultation and speak directly with an attorney, in person or entirely by video.
