Van Nuys Student Loan Repayment Lawyer
A student loan servicer that has stopped taking your calls, a collection letter from a guaranty agency, or a notice that your paycheck is about to be reduced can make repayment feel like a trap with no exit. Wadhwani & Shanfeld is a consumer bankruptcy and debt relief law firm that handles student loan debt, wage garnishment, creditor lawsuits, and the full range of bankruptcy and settlement options for people in Van Nuys and across Los Angeles County, Orange County, Riverside County, and San Bernardino County.
Looking for a Van Nuys student loan repayment lawyer usually means one of two things: you want a payment you can actually sustain, or you are trying to figure out what happens if you cannot make any payment at all. Both questions have real answers, and they depend on whether your loans are federal or private, whether they are in default, and what the rest of your debt picture looks like.
Student loans are the one category of debt where the rest of your finances matter enormously. A borrower with student loans plus credit cards, medical bills, and a car loan may find that clearing the other debts frees enough monthly income to keep the student loans current. That is why this firm looks at the whole balance sheet rather than treating the student loan in isolation.
Why Choose Wadhwani & Shanfeld for Student Loan Debt Strategy
Wadhwani & Shanfeld has helped more than 30,000 individuals and families get out from under debt. The firm is led by two Board-Certified Specialists in Consumer Bankruptcy through the American Board of Certification, and together its attorneys bring more than 90 years of combined legal experience. The firm serves clients throughout Los Angeles County, including Van Nuys and the San Fernando Valley, and across Orange, Riverside, and San Bernardino Counties. Clients get direct access to an attorney from the very first call, and the whole case can be handled by phone, email, video, or online chat, with 100% virtual consultations available. The first consultation is free.
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. 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.
Why does that matter for student loans? Because the most consequential student loan decisions are rarely about the loan alone. Whether to file Chapter 13 to create breathing room, whether a Chapter 7 will clear enough other debt to make repayment workable, and whether a wage garnishment can be stopped all turn on bankruptcy law. The firm files in every division of the U.S. Bankruptcy Court for the Central District of California, and when a garnishment or other collection action is days away, it moves fast.
Student Loan Situations That Bring Van Nuys Borrowers to Us
- Federal Loans in Good Standing but Unaffordable: Borrowers who are current but stretched thin often have more repayment flexibility than they realize. Payment structures tied to income exist for many federal loans, and a lawyer can help you weigh them against your other obligations.
- Federal Loans in Default: Default opens the door to collection tactics that ordinary creditors need a court judgment to use. Federal collectors can pursue wage garnishment and other collection remedies without first suing you, which makes default more urgent than most consumer debts.
- Private Student Loans: Private lenders do not offer the repayment programs federal loans do, but they must sue and win a judgment before garnishing wages. Settlement negotiation, limitations defenses, and bankruptcy can all come into play.
- Collection Lawsuits Over Private Loans: If a lender or collection firm has sued you in the Van Nuys courthouse of the Los Angeles County Superior Court or another venue, the response deadline is critical. An unanswered suit can end in a default judgment.
- Student Loans Plus Credit Card and Medical Debt: When student loan payments are crowded out by other unsecured debt, resolving the other debts through Chapter 7 or debt settlement may be what makes the loans manageable.
- Wage Garnishment Already Underway: A garnishment that is draining your paycheck changes the math on everything else. Filing bankruptcy can stop most garnishments the moment the case is filed.
- Cosigned Loans: A parent or friend who cosigned remains fully liable if you fall behind, so a default can put their paycheck and credit at risk too.
- Loans Held Alongside Business or Tax Debt: Small business owners and people with IRS balances often face student loans as one piece of a larger problem that needs to be sequenced carefully.
What to Do Now If You Are Falling Behind on Student Loans
Start by finding out exactly what you owe and to whom. Federal loans and private loans are handled very differently, and many borrowers have a mix. Pull your federal loan records and your credit report, and gather every letter, email, and notice you have received. Note whether any of it mentions default, a collection agency, or a lawsuit. If you have been served with court papers, write down the date you received them, because the deadline to respond runs from service and missing it can lead to a judgment against you.
Do not make a payment or sign anything on an old private loan before talking to a lawyer. In California, a payment cannot revive a debt that is already time-barred, but a signed written acknowledgment of the debt can restart the clock on one that is close to expiring. A written contract debt generally carries a four-year window to sue, and an oral contract debt two years. The expired deadline is a defense you must raise in a written answer; if you ignore the lawsuit, the court can still enter judgment against you even though the debt is old.
If you live in Van Nuys, your Chapter 7 or Chapter 13 case would be filed in the San Fernando Valley Division of the U.S. Bankruptcy Court for the Central District of California, which serves Van Nuys, Sherman Oaks, Encino, Reseda, North Hollywood, and the surrounding Valley communities. Your zip code determines the division. Collection lawsuits over private loans are filed in the Los Angeles County Superior Court, which has a Van Nuys courthouse among its many locations.
Call the firm before a garnishment, bank levy, or lawsuit deadline arrives rather than after. A free consultation will tell you which loans you have, which options apply, and whether bankruptcy, negotiation, or a repayment plan fits. The most common mistakes are ignoring court papers, paying a “student loan relief” company upfront fees for services you can get free, and filing bankruptcy without understanding how it will affect the student loan.
Can Student Loans Be Discharged in Bankruptcy?
Most student loans cannot be discharged in a standard bankruptcy, and that is the first thing to understand. Child support and most government fines fall in the same difficult category. But the bankruptcy filing still does real work for student loan borrowers, just indirectly.
A Chapter 7 case wipes out qualifying unsecured debt such as credit cards, medical bills, personal loans, and repossession deficiencies, usually in roughly four months. That can free up hundreds of dollars a month that were going to other creditors, which is often what makes a student loan payment sustainable. To qualify, your household income generally has to pass the means test, which compares your income to the California median for your household size and then accounts for actual expenses.
Chapter 13 works differently. It reorganizes your debts into one monthly payment over three to five years, and creditors are bound by the plan once the court confirms it. For someone with steady income, it can create structure around the student loan while also addressing a mortgage in arrears, a car loan, or tax debt, all while the automatic stay holds collection activity in place.
The firm will also tell you honestly when bankruptcy is not the right move. Because it handles both bankruptcy and alternatives such as debt settlement and negotiation with creditors, the recommendation is based on what fits your situation rather than the only service on offer.
Wage Garnishment and Bank Levies on Student Loan Judgments
When a private lender wins a judgment, it can garnish your wages. On an ordinary judgment, California caps the garnishment at the lesser of 20% of weekly disposable earnings or 40% of the amount by which your weekly disposable earnings exceed 48 times the minimum hourly wage. If your local minimum wage is higher than the state minimum, the local rate is used, and the multiplier changes to 96, 104, or 208 for biweekly, semimonthly, or monthly pay. You can also claim as exempt the portion of earnings you can show is necessary to support yourself or your family.
Your employer cannot fire you because your wages are garnished for a single judgment. Bank accounts are partly protected too: a set amount in a deposit account is automatically exempt per judgment debtor without your filing a claim, and the bank must apply it before turning money over. That protection does not reach every type of levy, so it is worth checking against your situation.
A California money judgment stays enforceable for 10 years from entry, and it can be renewed, though recent changes limit renewal for smaller personal debt and medical judgments. Filing Chapter 7 or Chapter 13 stops most garnishments as soon as the case is filed.
Student Loan Repayment Questions Van Nuys Borrowers Ask
Can a lawyer lower my student loan payments?
For federal loans, repayment options are set by program rules, and a lawyer can help you figure out which applies and how it fits with your other debts. For private loans, an attorney can negotiate directly with the lender or collector and, where it makes sense, resolve other debts so the loan becomes affordable.
Will bankruptcy get rid of my student loans?
Generally no. Most student loans survive a standard bankruptcy discharge. But bankruptcy can eliminate credit cards, medical bills, and other unsecured debt, which often frees enough income to handle the student loan.
What happens if I stop paying a private student loan?
The lender will report the delinquency and may send the account to collections. To garnish wages, it must first sue and win a judgment. If you are sued, you need to file a written response before the deadline.
Is a private student loan ever too old to collect?
Possibly. A written contract debt in California generally has a four-year window to sue. But the expired deadline is a defense you must raise yourself, and a signed written acknowledgment of the debt can restart the clock, so be careful about what you sign.
Can my wages be garnished for student loans?
Yes. After a judgment, a private lender can garnish within the limits California law sets. Federal loan collectors have separate collection tools that do not require suing you first.
Does filing bankruptcy stop a student loan collection lawsuit?
Yes, for the collection activity. The automatic stay takes effect the moment a petition is filed and halts lawsuits, judgments, bank levies, and wage garnishments. Whether the loan itself is eliminated is a separate question.
Should I pay a company that promises student loan forgiveness?
Be cautious about any company that charges upfront fees. Much of what these companies offer, you can do yourself or with a lawyer who has reviewed your actual loans. Ask what exactly you are paying for before signing.
What if my parent cosigned my loan?
A cosigner is fully liable on the debt. If you default, collection can target the cosigner as well, and the cosigner’s credit can suffer. Their situation should be part of any strategy.
Do I have to come into an office to get help?
No. The firm handles cases entirely by phone, email, video, and online chat for clients anywhere in Southern California, and offers 100% virtual consultations. In-person meetings are available if you prefer.
Can I file bankruptcy if I filed before and still have student loans?
Often yes, subject to waiting periods between filings. You must wait 8 years between Chapter 7 cases, 4 years to file Chapter 13 after a Chapter 7, and 2 years between Chapter 13 cases. The right choice depends on your history and goals.
Will my employer find out about my student loan trouble?
Not automatically. An employer might learn of a garnishment because it must process it, or of a Chapter 13 plan if payments come out of your paycheck. Employers are barred from firing you solely because of a bankruptcy filing.
Serving Van Nuys Student Loan Borrowers Across Southern California
Wadhwani & Shanfeld represents student loan borrowers from Van Nuys and 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. The firm also serves clients in Hollywood, Santa Monica, and across the Westside, as well as Santa Clarita and the Antelope Valley communities of Lancaster, Palmdale, and Acton.
Across Los Angeles County, the firm helps people in Los Angeles, Long Beach, Lakewood, Torrance, Compton, Inglewood, Norwalk, Bellflower, Paramount, Gardena, Cerritos, Signal Hill, and Huntington Park. In the Inland Empire and eastern San Gabriel Valley, clients come from Ontario, Rancho Cucamonga, Upland, Fontana, San Bernardino, Riverside, Pomona, Chino, Chino Hills, Montclair, Claremont, Glendora, West Covina, and the Coachella Valley.
Orange County borrowers are served in Anaheim, Santa Ana, Garden Grove, Buena Park, Fullerton, Huntington Beach, Westminster, Costa Mesa, Newport Beach, Tustin, La Habra, Placentia, Mission Viejo, Laguna Niguel, and Cypress. Wherever you live in Southern California, the whole case can be handled remotely.
Talk With a Van Nuys Student Loan Attorney Today
You do not have to sort out federal versus private loans, default, garnishment, and bankruptcy on your own. A conversation with a Van Nuys student loan attorney at Wadhwani & Shanfeld starts with a free consultation and direct access to a lawyer from your first call. The firm will review your loans, your income, and your other debts, explain every option inside and outside of bankruptcy, and tell you honestly which path makes sense.
If a garnishment, levy, or court date is approaching, call now so the firm can act quickly. Reach out today to schedule your free consultation by phone or video.
