Van Nuys Rebuilding Credit Lawyer
Van Nuys residents dealing with wrecked credit usually want to know two things: how long will this take to fix, and what should I do first? Wadhwani & Shanfeld is a consumer bankruptcy and debt relief law firm that handles Chapter 7, Chapter 13, debt settlement, wage garnishment, creditor lawsuits, and more for clients in Van Nuys, the San Fernando Valley, and across Los Angeles, Orange, Riverside, and San Bernardino Counties. If you are looking for a Van Nuys rebuilding credit lawyer, the honest starting point is this: credit repair is usually not a separate project from your debt. It is what happens after the debt problem is actually resolved.
Late payments, collection accounts, judgments, and repossessions keep dragging a score down for as long as they stay unresolved. Disputing entries or paying a “credit repair” company will not make a real, valid debt vanish. What moves the needle is dealing with the underlying obligations through a discharge, a court-approved repayment plan, a negotiated settlement, or a successful defense, and then building new positive history on top of a clean slate.
Many people who contact us have a score that is already low because of missed payments and collections. For them, a bankruptcy filing often does less additional damage than they fear, and recovery can begin soon after discharge. Below is how that works, what the law allows, and how to decide where to start.
Why Choose Wadhwani & Shanfeld for Credit Recovery After Debt Trouble
Wadhwani & Shanfeld has helped more than 30,000 individuals and families get out from under debt and start over across Southern California. The firm is led by two Board-Certified Specialists in Consumer Bankruptcy, certified through the American Board of Certification, and the attorneys and staff bring more than 90 years of combined legal experience to each case. Clients get direct access to an attorney from the first call, a free consultation, and the option of handling everything by phone, email, video, or online chat, including 100% virtual consultations.
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, a University of Southern California law graduate, has handled more than 10,000 bankruptcy cases over three decades. The firm files in every division of the U.S. Bankruptcy Court for the Central District of California, including the San Fernando Valley Division, which serves Van Nuys.
That depth matters for credit rebuilding because the right plan depends on what is dragging your score down. A garnishment, a pending lawsuit, a mortgage in default, and a pile of credit cards each call for a different tool. We handle both bankruptcy and its alternatives, so the recommendation is built around your income, property, and goals, and we will say so if bankruptcy is not the answer. When a garnishment, foreclosure sale, or repossession is days away, we act fast.
Credit Problems We Help Van Nuys Clients Resolve
- Credit Card Debt in Collections: Maxed-out cards, charged-off accounts, and balances sold to collection agencies can often be wiped out in Chapter 7 or reduced through settlement. Resolving them is what stops new negative entries from piling up.
- Medical Bills and Personal Loans: These are unsecured debts that are generally dischargeable. Medical collections frequently follow a job loss or illness, and clearing them lets you start rebuilding rather than treading water.
- Wage Garnishment: A judgment creditor can take a portion of each paycheck, and the lesser of two formulas sets the cap. Filing bankruptcy stops most garnishments the moment the case is filed through the automatic stay.
- Creditor Lawsuits and Judgments: A judgment is a serious credit and financial problem, and it stays enforceable for years. Responding to the suit on time, negotiating, or filing bankruptcy are the main paths.
- Mortgage Default and Foreclosure: Chapter 13 lets you catch up missed payments over time and keep the home. Loan modification and second mortgage settlements are other routes we handle.
- Auto Repossession and Deficiencies: A repossession leaves both a late-payment record and often a deficiency balance. Bankruptcy can eliminate the deficiency, and Chapter 13 can help you keep a car you are behind on.
- IRS Tax Debt and Student Loans: Some older income tax debt can be discharged if it meets timing rules, and the IRS can be negotiated with to stop levies. Student loans generally survive bankruptcy, so we look at strategies tailored to them.
- Small Business Debt: Personal guarantees on business debt hit personal credit directly. We handle small business bankruptcy and business debt solutions for owners in this position.
What to Do Now If Your Credit Is Sinking
Start by getting the full picture. Pull your credit reports and list every debt: who you owe, the balance, whether it is secured by a home or car, and whether any creditor has sued or threatened to. Keep every letter, summons, and notice. Those papers contain deadlines.
If you have been served with a lawsuit, do not ignore it. An expired limitations period is a defense, but you have to raise it in a written answer, or the court can still enter judgment against you. Collectors in California generally have four years to sue on written contract debt and two years on oral contract debt. A payment on an old, time-barred debt does not revive it, and only a signed written acknowledgment restarts the clock. Do not assume a debt is too old to matter without checking, and do not send a payment to a collector before you know where you stand.
Watch the dates on secured property. In a foreclosure, the notice of default begins the clock, and the sale cannot happen sooner than three months and 20 days after it is recorded. The notice of sale must be mailed and posted at least 20 days before the sale, and you can reinstate a monetary default until five business days before the sale. For a repossessed car, the lender must give written notice at least 15 days before disposing of it, and you can ask in writing for the redemption period to be extended by 10 days. A lender can only pursue a deficiency if that notice was given within 60 days of repossession and contains the required items.
Bank levies deserve a note too. California automatically protects a set amount in your deposit accounts from most levies, and the bank must apply that protection without you filing anything. It does not cover levies for wages owed to others, support, or debts owed to the state. If a garnishment is already hitting your paycheck, you can also ask the court to exempt the portion of earnings needed to support you and your family.
Most Van Nuys filers file in the San Fernando Valley Division of the U.S. Bankruptcy Court for the Central District of California, based on the street address where you live. Lawsuits are typically heard in the Van Nuys courthouse of the Los Angeles County Superior Court. Call us before your response deadline or sale date passes. We can explain whether to answer a suit, negotiate, or file, and in an emergency we can often prepare a case quickly.
How Bankruptcy and Settlement Reshape Your Credit File
People often assume bankruptcy ends their credit for good. It does not. A Chapter 7 can stay on your report for up to 10 years from filing, and a Chapter 13 is typically removed after 7 years, but the score impact fades well before then. Higher starting scores tend to drop more; people already deep in collections usually see a smaller change, and recovery can start within the first year.
Chapter 7 wipes out qualifying unsecured debt such as credit cards, medical bills, personal loans, and repossession deficiencies. To qualify, your income is compared to the California median for your household size under the means test, followed by your actual expenses. Most cases wrap up in roughly four months. Although it is called liquidation, the vast majority of our clients keep everything they own.
Chapter 13 fits people with steady income who need structure. Your debts are consolidated into one monthly payment over three to five years, and creditors are bound once the court confirms the plan. It is a common tool for catching up on a mortgage or car loan, handling priority tax debt or support arrears, and protecting equity beyond what exemptions cover.
Debt settlement is the non-court route. We negotiate with the lender to settle for less than you owe. It can make sense when the debt is manageable but the balance is crushing, though settled accounts are still reported, so the credit effect is different from a discharge.
California does not use the federal exemptions. You choose between two state systems for the whole case: one built around a large homestead exemption, with the homestead amount tied to local home prices, and another with a flexible wildcard that often suits renters better. You generally need to have lived in California for at least 730 days to use these exemptions. Picking the right system is one of the most important calls in the case, and our board-certified attorneys work through every exemption before you file.
Rebuilding afterward is practical, not mysterious. A secured card used responsibly, every bill paid on time, and low balances move a score in the right direction. Depending on the loan type, buying a home can be possible within a few years of discharge. We give every client guidance on rebuilding so the fresh start lasts.
Credit Rebuilding and Debt Relief Questions Van Nuys Clients Ask
Can a lawyer remove accurate negative items from my credit report?
No lawyer can legitimately erase accurate, valid debts from your report. What an attorney can do is resolve the debt itself through discharge, a repayment plan, settlement, or a defense, and challenge anything reported inaccurately or after a discharge.
Will filing bankruptcy ruin my credit for a decade?
Chapter 7 can remain on your report up to 10 years and Chapter 13 typically 7, but the effect on your score diminishes long before those periods end. Many filers already have low scores, so the additional drop is smaller than expected.
How soon can I start rebuilding after discharge?
Right away. Using a secured card responsibly, paying every bill on time, and keeping balances low can start lifting your score within the first year.
Can bankruptcy stop a wage garnishment?
Yes. Filing Chapter 7 or Chapter 13 triggers the automatic stay, which halts most garnishments, lawsuits, bank levies, repossessions, and foreclosure proceedings the moment the petition is filed.
How much of my paycheck can be garnished in California?
On an ordinary judgment, the cap is the lesser of 20% of weekly disposable earnings or 40% of the amount by which those earnings exceed 48 times the minimum hourly wage. If a local minimum wage is higher than the state’s, the local rate is used. Biweekly, semimonthly, and monthly paychecks use 96, 104, and 208 times the minimum wage instead of 48.
Can my employer fire me over a garnishment or bankruptcy?
California law bars an employer from firing you because your wages are garnished for a single judgment, and state and federal law prohibit firing you solely for filing bankruptcy. Your employer is not automatically notified of a filing, though they may find out if they are a creditor or if Chapter 13 payments come out of your paycheck.
What if a collector sues me over a very old debt?
Raise the expired limitations period in a written answer. It is a defense, not an automatic win, and the court can still enter judgment if you do not respond. A payment will not revive a time-barred debt, but a signed written acknowledgment can restart the period, so be careful about what you sign.
How long does a judgment against me last?
A California money judgment is enforceable for 10 years from entry. It can be renewed, but for personal debt judgments under a set principal amount and medical expense judgments under another, recent law limits renewal to one time for five years. After the enforcement period ends, enforcement stops and liens created by it are extinguished.
Do collectors have to follow rules in California, even the original creditor?
Yes. California’s Rosenthal Act covers original creditors as well as third-party collectors. If a collector acts willfully and knowingly, a court can award additional damages of $100 to $1,000 on top of actual damages, plus attorney fees. The suit must be brought within one year, and a collector can escape liability by correcting a curable violation within 15 days of learning about it.
Can I file again if I filed bankruptcy before?
Yes, subject to waiting periods: 8 years between Chapter 7 filings, 4 years for Chapter 13 after a Chapter 7, 2 years between Chapter 13 filings, and generally 6 years for Chapter 7 after a Chapter 13, though that last period can be shortened if your plan paid enough to unsecured creditors.
Is a bankruptcy petition preparer or notary a substitute for an attorney?
No. A preparer can type your information into forms but cannot give legal advice, choose your exemptions, or represent you if a trustee or creditor raises a problem. Errors can cost you property or your discharge.
Do I have to come to an office to get started?
No. We handle cases fully by phone, email, video, and online chat, and virtual consultations are available if that is easier.
Serving Van Nuys and Credit Rebuilding Clients Across Southern California
From Van Nuys, we represent 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. We also work with clients in Hollywood, Santa Monica, and the Westside, as well as Los Angeles, Santa Clarita, Inglewood, Compton, Torrance, Lakewood, and Long Beach.
Our reach extends across Los Angeles County into the Antelope Valley communities of Lancaster, Palmdale, and Acton, and into the eastern San Gabriel Valley and Inland Empire, including Pomona, Claremont, Glendora, West Covina, Chino, Chino Hills, Montclair, Ontario, Upland, Rancho Cucamonga, Fontana, and San Bernardino, as well as Riverside and the Coachella Valley. In Orange County and the surrounding area, we serve 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 to a Van Nuys Credit Rebuilding Attorney Today
Your credit will not recover while collection calls, lawsuits, and unpaid balances keep adding new damage. Call Wadhwani & Shanfeld for a free consultation and speak directly with a Van Nuys credit rebuilding attorney about whether Chapter 7, Chapter 13, settlement, or another route gives you the best path forward. We will review your situation, explain every option inside and outside of bankruptcy, and give you an honest answer.
If a deadline, sale date, or garnishment is close, tell us on the first call and we will move quickly. You can handle your entire case remotely or meet with us in person, whichever is easier for you.
