Van Nuys Bankruptcy Lawyer
The goal in most bankruptcy cases is simple to state: the calls stop, the paycheck and bank account stay intact, the house and car are still yours, and the debt that was crushing the household is either gone or turned into a payment you can actually make. Wadhwani & Shanfeld, a consumer bankruptcy and debt relief law firm, works toward that outcome for individuals and families in Los Angeles County, Orange County, Riverside County, and San Bernardino County, and a Van Nuys bankruptcy lawyer from our team can walk you through what that looks like in your own case.
Van Nuys residents file in a specific forum. Debtors in the San Fernando Valley file in the San Fernando Valley Division of the U.S. Bankruptcy Court for the Central District of California, which sits in Woodland Hills and lists Van Nuys among the communities it serves. The filing division is determined by the debtor’s street address zip code, not a P.O. box, so a quick check against the court’s locator is part of getting a petition filed correctly. Getting the venue right is a small detail, but it is the kind of detail that separates a clean filing from a delayed one.
What follows is a practical look at how bankruptcy works for Van Nuys filers: which chapter fits which situation, how California’s exemption rules decide what you keep, and how garnishments, bank levies, foreclosure sales, and repossessions fit into the timeline.
Why Choose Wadhwani & Shanfeld as Your Van Nuys Bankruptcy Attorney
The firm is led by two Board-Certified Specialists in Consumer Bankruptcy, certified through the American Board of Certification, with more than 90 years of combined legal experience. You get direct access to an attorney from your first call, and the firm can act fast when a garnishment, foreclosure sale, or repossession is days away.
Raj Wadhwani, founding shareholder and partner, 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. That familiarity with the court’s filing systems matters when a petition has to go in quickly. Greg Shanfeld, founding shareholder and partner, earned his law degree at the University of Southern California and has handled more than 10,000 bankruptcy cases over three decades. Both hold board certification in consumer bankruptcy, a credential few attorneys carry.
The firm files in every division of the Central District, so wherever your address places you, the case is handled in the correct court. Consultations are free, and the entire process can be handled by phone, email, video, and online chat, with 100% virtual consultations available. Recommendations are built around your income, property, and goals, and the firm will say so plainly when bankruptcy is not the best answer and settlement or negotiation makes more sense.
Debt Situations That Bring Van Nuys Residents to Bankruptcy Court
- Credit Card and Medical Debt: Unsecured balances are the classic Chapter 7 target. If your income falls under the California median for your household size, or your allowed expenses bring you under it, these debts can be wiped out in a case that typically wraps up in about four months.
- Collection Lawsuits: Once a creditor sues, the clock runs on your response. Filing bankruptcy halts the lawsuit through the automatic stay, and in some cases the lawsuit itself is a defensible one, for example when the debt is outside the four-year window for written contracts or the two-year window for oral ones.
- Wage Garnishment: A judgment creditor can generally take up to the lesser of 20 percent of weekly disposable earnings or the amount by which those earnings exceed 48 times the minimum hourly wage. A Chapter 7 or Chapter 13 filing stops most garnishments the moment the case is filed.
- Bank Account Levies: A frozen account often triggers the call. California automatically protects a set amount in a deposit account from levy without any paperwork, but that protection does not cover levies for wages owed to others, support, or debts owed to the state.
- Mortgage Arrears and Foreclosure: Homeowners who fell behind after a job loss or medical event use Chapter 13 to catch up over three to five years and keep the property, and in some cases to strip off a wholly unsecured second mortgage.
- Car Repossession and Deficiency Balances: A repossession followed by a sale often leaves a deficiency balance, which is unsecured debt that Chapter 7 can discharge. Chapter 13 can keep a car you are behind on.
- IRS Tax Debt: Some older income tax debt can be discharged if it meets timing rules, while recent or priority taxes are typically handled through a Chapter 13 plan or a payment arrangement with the IRS.
- Small Business Debt: Sole proprietors and owners who personally guaranteed business obligations often need the personal and business sides of the debt addressed together.
What to Do in the First Days After Collection Pressure Escalates
Start by sorting your paperwork by urgency rather than by creditor. A summons and complaint carries a response deadline, so locate the date it was served and bring it to the first consultation. A notice of default, a notice of sale, a repossession letter, or a levy notice each starts its own clock, and the attorney needs to see them to know which one controls the order of work. Gather recent pay stubs, bank statements, tax returns, a list of what you own, and statements for every debt, including the ones you have stopped opening.
If you have been sued in a Van Nuys-area collection case, the Los Angeles County Superior Court has a Van Nuys courthouse, and a written response must be filed before the deadline or the court can enter judgment even on a debt that is too old to collect. The time-bar defense is not automatic; it must be raised in a written answer. Do not make a payment or sign anything acknowledging an old debt before speaking with an attorney. A payment cannot revive a time-barred debt, but a signed written acknowledgment can restart the limitations period.
For homeowners, the foreclosure timeline gives more room than most people assume, but less than they hope. A sale cannot be set until roughly 90 days after the notice of default may be recorded, and the sale date can be no earlier than three months and 20 days after that recording. The notice of sale must be mailed by registered or certified mail and posted on the property at least 20 days before the sale. A missed-payment default can be cured by reinstatement until five business days before the sale date. If the sale is postponed at least 10 business days, the lender must send written notice of the new date within 5 business days. A bankruptcy filing stops the sale whenever it is filed, which is why waiting for the last week costs you options.
For car owners, the lender must send at least 15 days’ written notice of intent to dispose of a repossessed vehicle, extended to 20 days when mailed from or to an address outside California. You can request in writing a 10-day extension of the redemption period. A deficiency claim is only valid if the notice goes out within 60 days of repossession and contains the required content, and you can demand an accounting within 45 days after the sale. These rules often give a repossession case more defenses than borrowers realize.
The most common mistakes are ignoring a lawsuit, moving money to a relative before filing, paying one favored creditor just before bankruptcy, and hiring a document preparer who cannot give legal advice or defend the case if a trustee or creditor raises an issue. Each can cost you property or put your discharge at risk.
How California Exemptions Decide What You Keep
Chapter 7 is sometimes called liquidation, but whether anything is actually sold depends entirely on exemptions. California has opted out of the federal exemption scheme, so a filer chooses between two state systems for the whole case: the standard system in the Code of Civil Procedure sections 704 and following, or the alternative list under section 703.140(b). You cannot mix and match, and using California’s exemptions requires having lived in the state for at least 730 days.
The first system carries a homestead exemption set by a formula: the greater of the prior-year countywide median single-family home sale price, up to a ceiling, or a statutory floor. The floor and ceiling adjust annually with inflation. For many Los Angeles County homeowners that formula protects substantial equity, which is why most Van Nuys homeowners who file Chapter 7 keep the house if they are current on the mortgage. The second system offers a much smaller residence exemption but adds a wildcard that can be applied to any property, which tends to suit renters with few assets better. The dollar amounts in the second system are adjusted every three years on a set schedule.
Choosing between them means comparing your home equity, your vehicle, your bank balances, retirement accounts, and tools of your trade against both lists. It is among the most consequential decisions in the case, and the right answer changes from household to household.
Chapter 7, Chapter 13, and Debts That Judgments Leave Behind
Chapter 7 fits people with limited income and mostly unsecured debt. Chapter 13 fits people with steady income who need structure: arrears on a home or car, income above the means test, priority tax debt, or support arrears that Chapter 7 cannot eliminate. A Chapter 13 plan runs three to five years, and creditors are bound once the court confirms it.
Judgments deserve their own attention. A California money judgment is enforceable for 10 years from entry and can be renewed, though for medical judgments with unpaid principal under $200,000 and personal debt judgments under $50,000, renewal is now limited to a single five-year extension. A judgment lien that attaches to property can be addressed in bankruptcy in many cases, and judgments that would otherwise follow you for a decade can often be discharged as part of the case.
California’s Rosenthal Act also matters here. It reaches original creditors as well as third-party collectors, allows actual damages plus an additional $100 to $1,000 for willful and knowing violations, and awards attorney fees to a prevailing consumer. The suit must be brought within one year. If a collector has crossed the line, that claim can sometimes offset what you owe or give you leverage in negotiation.
Van Nuys Bankruptcy Questions, Answered
Which bankruptcy court would my Van Nuys case be filed in?
Van Nuys is among the communities served by the San Fernando Valley Division of the U.S. Bankruptcy Court for the Central District of California, which sits in Woodland Hills. The division is determined by your street address zip code, so the court’s locator is used to confirm it before filing.
How fast does bankruptcy stop a garnishment or bank levy?
The automatic stay takes effect when the petition is filed, and creditors must stop collection. Wage garnishments generally end, and levies are halted. In urgent situations we can often prepare and file quickly.
Will I lose my Van Nuys home in Chapter 7?
Most homeowners do not. If your equity falls within California’s homestead exemption and you are current on the mortgage, you keep the home. If you have more equity than the exemption covers or are behind on payments, Chapter 13 is usually the path to keep it.
Can a creditor sue me after the statute of limitations has run?
Sometimes they try. The limit is four years for written contract and book account debt and two years for oral contracts, but the deadline is a defense you must raise in a written answer. If you do not respond, the court can still enter judgment.
Does making a small payment on an old debt restart the clock?
Not in California. A payment cannot revive a debt that is already time-barred. Only a signed written acknowledgment can restart the period, which is why you should not sign anything a collector sends without having it reviewed.
What debts survive bankruptcy?
Child support, alimony, most student loans, most government fines, and debts for injuries caused by drunk driving generally survive. Credit cards, medical bills, personal loans, payday loans, and deficiency balances after repossession or foreclosure are generally dischargeable.
If I am served with a lawsuit by a collection law firm, should I wait to see what happens?
No. The response deadline starts when you are served. We can advise whether to answer, negotiate, or file bankruptcy, and we also help with judgments that have already been entered.
Can my employer fire me because my wages were garnished?
California law bars an employer from terminating you because your wages are garnished for a single judgment. Federal and California law also prohibit firing solely because you filed bankruptcy.
How does a Chapter 13 plan interact with a foreclosure sale already on the calendar?
Filing stops the sale immediately. The plan then lets you spread the missed payments over time while keeping current going forward. Timing matters, since a monetary default can also be reinstated outside bankruptcy until five business days before the sale.
Is it worth hiring a lawyer instead of using a petition preparer?
A preparer can type your information into forms but cannot advise on exemptions, choose between chapters, or represent you if a trustee or creditor objects. Errors can cost you property or your discharge, so attorney representation matters.
If I filed bankruptcy before, can I file again?
Yes, subject to waiting periods: 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, a period that can be shortened if the plan paid enough to unsecured creditors.
Do I have to come into an office to file?
No. We handle cases entirely by phone, email, video, and online chat for clients anywhere in Southern California, and consultations can be 100% virtual.
Wadhwani & Shanfeld’s Bankruptcy Representation Across Van Nuys and the San Fernando Valley
From Van Nuys, our team represents clients throughout the San Fernando Valley, including Sherman Oaks, Encino, Woodland Hills, Reseda, Northridge, Granada Hills, North Hollywood, North Hills, Mission Hills, San Fernando, and Sylmar, and across Los Angeles, Hollywood, and the Westside communities such as Santa Monica. We also serve Santa Clarita, Torrance, Compton, Inglewood, Long Beach, Lakewood, and Gardena, and the Antelope Valley communities of Lancaster, Palmdale, and Acton.
Our reach continues into the Inland Empire, including Ontario, Rancho Cucamonga, Upland, Fontana, San Bernardino, Pomona, Chino, Chino Hills, Montclair, Claremont, Glendora, West Covina, Riverside, and the Coachella Valley. In Orange County we represent 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. Wherever you live, your case is filed in the correct division of the Central District, and the same attorneys stay accessible through the whole process.
Talk With a Van Nuys Bankruptcy Attorney Before the Next Deadline
If a lawsuit, garnishment, levy, sale date, or repossession notice is driving the calendar, the most useful step is a conversation with an attorney who can tell you which deadline matters first. A Van Nuys bankruptcy attorney at Wadhwani & Shanfeld will review your income, property, and debts, explain every option inside and outside of bankruptcy, and tell you honestly which path gives you the best fresh start. Call to schedule your free consultation and speak directly with an attorney, in person or entirely online.
