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Bankruptcy Myths

Will everyone know when you file bankruptcy? (Ontario attorney David Lozano wishes to put your mind at ease!)

A big concern I hear from my clients when they come in for a free consultation is who will know that they have filed bankruptcy. Truthfully, there are only a limited number of people who may be notified when you file bankruptcy.

Creditors will be made aware of the fact that you have filed bankruptcy. This is a standard procedure that gives creditors the opportunity to dispute the claim. Employers may also be notified depending on the circumstances of your bankruptcy case. Members of your household, for instance a spouse, will be notified even if their finances are separate from yours. Public records are kept by the Federal Court that require specific information about the bankruptcy case in order to gain access to the records.

Less people than you think will be notified when you file bankruptcy. This means that unless you share the information with your friends or other family members, they will be none the wiser! Drop by our Ontario location for a free consultation!

David Lozano, Attorney at Law
Contact me today for a free consultation
800-974-5680/Se habla español

Do you give yourself and your credit card enough credit? (Bankruptcy attorney David Lozano sheds a little limelight on the subject!)

It is probably safe to say that the majority of Californians are credit cardholders. The U.S. Census Bureau recently collected data on the number of credit cardholders there were in the United States and found that there were 159 million in 2000 and 176 million in 2008. With this data, they then estimated the count for 2011 to be 183 million. I’d like to think these astonishing figures support the idea that Americans are, in general, becoming more financially responsible!

Getting your own credit card is almost like a right of passage for many young adults. It symbolizes that they are–or at least have the potential to be–financially responsible. When managed correctly, a credit card is a useful and often beneficial method of payment. Some credit cards even come with rewards or cash back on essentials, such as groceries, gas, dining, or travel.

There are many brands of credit cards offered by different companies, but did you realize there are just three basic types of credit cards?–unsecured cards, high risk cards, and secured cards.

An unsecured card is most commonly offered to individuals with a good, solid credit history. These cards do not require cash deposit and have no collateral loans. High risk cards often go to people who have a slightly less polished credit history. These cards tend to have an activation fee, annual fees, and late payment penalties attached to them. The last type is a secured credit card, which comes with steep annual fees and late payment penalties. This type of credit card functions similarly to a debit card in that you need to have a certain amount of cash in an account as “insurance”.

When it comes to credit cards, there are many options out there. But no matter what type of credit card you have, as a bankruptcy attorney, I am equipped to handle any type of credit card debt you may have. Contact me for a free consultation on settling your credit card debt!

David Lozano, Attorney at Law
Contact me today for a free consultation
800-974-5680/Se habla español

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What about my credit score? (Hint: Bankruptcy is good for your credit score in the long run)

We can all agree that a good credit score is handy to have. So why would you risk the score you have by filing bankruptcy?

To be frank, you risk more by doing nothing. Your credit score is already hurting or you probably wouldn’t be in the pickle you’re in, right? Look at it this way: filing bankruptcy is like putting a bandage and antibiotic on a wound. If you do nothing, that wound will get infected!

So you file bankruptcy, but what about your credit report for the next 10 years? Contrary to what a lot of people think, all is not lost. Just because a bankruptcy is on there doesn’t mean you can’t improve your credit score in the meantime. In fact, the more you do to regain a healthy credit score the less likely creditors will be to concern themselves with what happened in the past. They will be more interested in whether you are staying current with your payments and managing your credit responsibly from here on out!

In fact, keep in mind that you are a better credit risk after you file for bankruptcy. Why is that? Because after you file for bankruptcy, creditors know that you can’t file again for eight years in the case of a Chapter 7 bankruptcy and somewhat less than that in the case of a Chapter 13 bankruptcy. Instead of worrying that you will file for bankruptcy, creditors will know that you are already in the process of rebuilding your credit.

So put a bankruptcy bandage on your debt so that you can begin the healing process. Bankruptcy lawyer David Lozano is your best choice for filing bankruptcy in Southern California. Please give me a call–you’ll be happy you did!

David Lozano, Attorney at Law
Contact me today for a free consultation
800-974-5680/Se habla español

Is it true that married couples must file bankruptcy together? (Bankruptcy attorney David Lozano says, “this is not the case!”)

David Lozano advises married couples about filing bankruptcy!A question many married couples have when they come for a free consultation is whether they both have to file bankruptcy. I am happy to say that spouses are not required to file joint bankruptcy! That misconception is just another common bankruptcy myth!

There are many reasons why a couple might choose to file separately. One example is if there is an inheritance involved. In order to protect the rights to the inheritance, it is better for that person’s partner be the only one to file bankruptcy. Another factor of filing bankruptcy separately is if one spouse owns a business that has its own separate financial plan. To preserve the business, the couple would need to file separately.

One more instance where a couple would want to file separately is if they kept their financial affairs separate throughout their marriage. If this is the case, one spouse may wish to maintain his or her credit score by not filing bankruptcy with his or her partner.

Depending on the situation, it may be beneficial that only one spouse files bankruptcy and the other does not. The thing to keep in mind is that everyone has different and unique circumstances. Deciding what course is best for you is all in a day’s work for me. So contact me for a free consultation today!

David Lozano, Attorney at Law
Contact me today for a free consultation
800-974-5680/Se habla español

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Worried about getting a credit card after filing bankruptcy? (Los Angeles bankruptcy attorney David Lozano is here to alleviate your worries!)

I want to clear up the misunderstanding that many people have concerning credit cards. The common impression is that you won’t be able to get a credit card once you file bankruptcy. This is a myth! Credit card offers are going to come to you a week or two after you file bankruptcy–by way of your mailbox!

Of course, the first to arrive might not be your best bet. These companies’ cards tend to come with costly fees and cleverly disguised pitfalls. The good news is that once you’ve started to rebuild your credit, more favorable offers will begin to filter in–ones without fees or hidden drawbacks.

Perhaps another thought has crossed your mind, though. If you’ve just filed bankruptcy, why would you want to get a credit card and risk credit card debt all over again? My rule of thumb is  to use your new credit card strictly for emergencies and as a tool to rebuild your credit. If an emergency crops up and you’re without cash, a credit card will get you through the situation.

As for the second part of my rule of thumb. Using your credit card in a responsible and managed way can work out in your favor! As long as you make all your payments on time and in full, you can take an active part in rebuilding your credit!

Wondering if there’s an advantage to using a payday loan service? (Bankruptcy attorney David Lozano says, “definitely not!”)

The tempting offer of a payday loan is hard to resist. They make it sound as if there are no strings attached–the service simply lends you the money you need until your next paycheck. The hard truth, however, is that you often end up owing more money than you borrowed. Whatever label it is given–payday loan, cash advance, check advance, deferred deposit–it amounts to the same thing. The payday loan service cashes in while you struggle to stay afloat!

Here’s how it works, if you want to borrow $100 to get you through the next two weeks, you write the payday loan service a check for $115–that’s a 15% fee, which equals a 391% Annual Percentage Rate. Then they hold the check for those two weeks. But what happens if you can’t afford the expense? Most of the time you can’t renew or extend your loan. So you either you have to cough up the cash or they rely on a collection agency to get the money out of you. In the cases that you can renew or extend your loan, it comes at a costly fee, which almost always outweighs any benefit of getting the advance in the first place!

Payday loans aren’t what they are cracked up to be. If you’re having financial troubles your best bet is to go to a professional financial adviser! For a free consultation to discuss your options, contact me! We can find a solution that benefits you instead of adding to the problem!

David Lozano, Attorney at Law
Contact me today for a free consultation
800-974-5680/Se habla español

Can you still be successful after filing bankruptcy? (Bankruptcy attorney David Lozano answers, “absolutely!”)

Coming to terms with bankruptcy is a difficult process. If you’ve ever asked yourself, “how did this happen to me?” You are not alone! People have been asking themselves the same thing for decades. In fact, you may be surprised by just who has shared your exact sentiments!

After sampling several career choices that ended in failure, a man named Milton Hershey became an apprentice at a confectionery shop. At the end of his apprenticeship, Milton attempted to start his own business, yet that, too, failed, leading him to file bankruptcy. Fortunately, Milton found his calling as a candy maker and went on to form a business you may be familiar with–Hershey Chocolate Company.

Another case of celebrity bankruptcy was filed by none other than the founder of the Magical World of Disney, Mr. Walt Disney himself! Walt had his fair share of side jobs before he became the renowned man we know him as today. Walt’s interest in drawing led him to become a freelance commercial artist. He struggled for some time to make ends meet, dabbling in the area of animated cartoons.

Also during this difficult financial time in his life, Walt drew the first rendition of a character that would eventually change his life. He fondly bestowed the name of Mickey Mouse on the comical character he’d created. Despite all his efforts, however, Walt simply wasn’t able to get his drawing career off the ground and was forced to declare bankruptcy. Of course, Walt’s endeavors have a happy fairy tale ending that everyone can now enjoy!

It just goes to show you that no matter who you are, bankruptcy is a legitimate possible and is most definitely not an end-all! Contact me for your free consultation. Who knows, fame and fortune may be just around the corner! What wonders will you create with your fresh, debt free start?

David Lozano, Attorney at Law
Contact me today for a free consultation
800-974-5680/Se habla español

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Does filing bankruptcy lead to divorce?

Would you believe filing bankruptcy can bring married couples closer together? It’s true! I’ve seen firsthand how many couples come together after taking action to settle their debt. The idea that filing bankruptcy inevitably leads to divorce is a myth!

The constant worry of how to pay off immense amounts of debt, creditors incessantly pestering you, the threat of foreclosure on your home– this kind of stress feeds on itself and grows exponentially. It stands to reason that all that tension is going to find an outlet! No wonder there is evidence of strain in more than a few relationships!

The tension and stress that is caused by debt consumes couples full attention and energy, but all is not lost! Just ask yourself, what is the real cause of this supposed rift in your relationship? That’s right, what not who! Debt is the true culprit!

How do you solve the problem? Let me give you a hint, it’s not by getting a divorce. You simply need to eliminate the source of the problem– the debt has to go! That’s where I come in. The first step is a free consultation, and the relief is soon to follow!

Preserving a healthy and lasting marriage is possible when filing bankruptcy! David Lozano has seen it happen thousands of times!I handle settling my clients’ debt, which helps to alleviate much of the stress, but it is the couples that deserve all the credit for rekindling their relationship! They are united in taking control of the situation! With a fresh start ahead of them, couples can focus on getting back on track with their finances as well as their marriage!

David Lozano, Attorney at Law
Contact me today for a free consultation
800-974-5680/Se habla español

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Want to keep your home, car, and personal possessions despite your debt? (Los Angeles bankruptcy attorney David Lozano can make it happen!)

Bankruptcy laws were designed to benefit you, the average Californian! Bankruptcy is granted by a federal court to either businesses or individuals who are in debt and need a fresh start or an extension on their payment deadlines. There are several kinds of bankruptcy options, such as Chapter 7 and Chapter 13, but deciding which type to file is simple with bankruptcy attorney David Lozano’s assistance!

Los Angeles bankruptcy attorney David Lozano helps you keep your possessions!David Lozano will outline what is involved in the bankruptcy process step-by-step before you file bankruptcy so that you know what to expect. A concern that has been raised thousands of times by clients is whether they will lose their home, car, or other possessions which they hold dear. I am happy to tell you that as long as you are upfront about listing all the assets you own, there is very little risk of losing your possessions and property.

The idea that bankruptcy automatically leads to the loss of your possessions is a myth! In most cases your home, car, and personal possessions are exempt from being repossessed. David Lozano wants you to know beforehand what is going to happen when you file bankruptcy in order to ease your worries! So stop by one of our offices in West Covina, Ontario, or Lancaster for a free consultation!

David Lozano, Attorney at Law
Contact me today for a free consultation
800-974-5680/Se habla español

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Want to keep creditors at bay?

As a Californian bankruptcy attorney, I’ve heard almost every kind of concern people dealing with debt have. One of the common concerns is that creditors will continue to contact you even after you’ve filed bankruptcy. This is a myth!

Once you file bankruptcy an “automatic stay” is put in place, which means creditors aren’t allowed to contact you. This puts an end to the constant calls and letters! It also prevents foreclosure and lawsuit attempts.

Avoid the constant calls from creditors with help from David Lozano!Bankruptcy laws were designed to give you a chance to get your life back in order. With the Law Offices of David Lozano, your fresh start can be made without creditors banging on your door demanding money! Contact me for a free consultation, so that you can get started on turning your financial situation around!

David Lozano, Attorney at Law
Contact me today for a free consultation
800-974-5680/Se habla español

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