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Debt Relief

Lancaster, California, attorney explains how utility shut off is affected by filing bankruptcy!

Many times when people are faced with impending debt, they start looking for shortcuts to save money–using coupons and sales to buy groceries and other necessities, making sure to turn off all lights and appliances when they are not being used, or letting a few bills slide in hopes of catching up on the payments later. The first two are great ways of saving money! The last one can often land you in deeper trouble than you were in before!

Lancaster, California, attorney explains how utility shut off is affected by filing bankruptcy! When you have fallen noticeably behind on your utility bills, utility companies will shut off your utility. Fortunately, there are some requirements that utility services must follow before shutting off your utilities. The power cannot be shut off on days when the utility office is closed, which includes holidays! If there are members of the household whose health is dependent on a power supply, a utility representative must visit the house before the utilities are disconnected. Utilities services must also notify recipients before the utilities can be shut off.

I also have good news, courtesy of SignOn San Diego!

In reaction to stories from around the state that people were being cut off because the bad economy had made it difficult for them to pay their bills, the California Public Utilities Commission told utilities they had to take steps to prevent needless cutoffs.
In particular, the commission said power companies, including San Diego Gas & Electric, must give people at least three months, and up to a year, to get their bills up to date.

But what about people who have already had their utilities shut off and are seeking debt relief? More good news! “The bankruptcy laws require the utility company to restore the service of any utility that was terminated prior to the filing. A bankruptcy filing prevents the utility company from terminating an individual’s service.”

That’s right, Chapter 7 bankruptcy and Chapter 13 bankruptcy provide debt relief and can restore your utilities! You simply need to pay a security deposit within 20 days of filing to ensure your utilities stay on. Contact me or visit our Lancaster office for a free consultation! Bankruptcy attorney David Lozano is dedicated to keeping you debt free and powered up!

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

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Dealing with debt and rising prices? Lancaster attorney David Lozano advises you to keep a budget!

Everyone has a different grocery shopping approach–some make a list, others go in and shop for whatever looks good, some plan their shopping trip by clipping coupons and waiting for the biggest sales, others shop for what they need for the week. Whatever their shopping style, however, all shoppers will be affected by the increase in food prices this year!

There is a predicted 2% to 3% rise in food prices for 2011! According to Rick Plumlee, the break down of prices goes like this:

“Beef increased nearly 6 percent through Sept. 30 over the end of the third quarter in 2009. Pork shot up 10 percent, and fresh vegetables increased more than 4 percent. And then there are eggs. They jumped 11.3 percent, in part because of a salmonella outbreak in August at two Iowa farms.”

With the economy the way it is, any increase in prices is cause for concern! Gas prices are already causing people to pull their hair out. Although the government has turned to using ethanol fuel to try to keep the price of gas down. But wait, ethanol is made from corn! Do you know how many foods have corn or corn syrup in them? Not to mention how corn is used as feed for chickens.

As a bankruptcy attorney, I look at things from the perspective of my clients. Dealing with debt makes even the slightest jump in prices a nightmare! I advise my clients to practice good budget management. By sticking to a budget, my clients can take advantage of the times when prices are good and make do when they aren’t! Visit our Lancaster location today 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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Overdraft protection plan dangers – West Covina attorney David Lozano

I’ve told you in past blog posts about the drawbacks that go with payday loans, but a bad payday scheme isn’t the only risky deal out there! Banks offer what is called an overdraft protection plan to prevent a check from bouncing due to insufficient funds. Of course this sounds like good thing but, as with the payday loans, there is a major downside!

If you should happen to make a withdrawal that exceeds the amount of money you have in your account, you are charged a penalty fee. Well that sounds reasonable, right? The bank simply wants to discourage people from overdrawing their accounts. The only problem is that the fee can be up to $20 or $35 per overdraft! On top of that, there is a $2 to $5 daily fee until the balance is paid!

West Covina attorney spreads the word about the risks of overdraft protection!An overdraft is most common at the ATM or when using a debit card, but it can also occur when writing a check. Overdrawing an account usually happens when someone doesn’t monitor his or her account activity as closely as he or she should. But even the most scrupulous account holder is capable of making a mistake!

Of course by itself, an overdrawn account doesn’t typically result in bankruptcy, but the little things can add up! Someone who is dealing with the loss of a job or medical bills doesn’t need anything else on his or her plate! At the Law Offices of David Lozano, we do everything we can to make your financial life easier! Stop in at our West Covina location or contact me 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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Do you have something in common with Will Smith? (Bankruptcy attorney David Lozano says, “more than you might think!”)

Do you have a flair for the dramatic, a thirst for action and adventure, a good sense of rhythm with a dash of witty humor and charm to tie everything together? See, we’ve already established some strong similarities between you and the Fresh Prince! One likeness that might come as a surprise to you, however, is Will Smith’s close encounter with bankruptcy.

Will Smith was once an up-and-coming rapper with dreams of one day becoming a movie star! He earned the nickname “Fresh Prince” for being able to smooth talk his way out of trouble. In 1988, as part of a hip-hop trio, Will Smith won a Grammy for the song “Parents Just Don’t Understand” and became a millionaire. Smith then went on a spending spree and underpaid his taxes, which nearly forced him into bankruptcy. To be fair, Smith was only 18 and a million dollars is enough to go to anyone’s head!

Regrettably, the Fresh Prince couldn’t smooth talk his way out of the debt he accumulated after squandering his fortune. He owed 2.8 million dollars in tax debt to the IRS, a number of his possessions were repossessed, and his income was heavily garnished. Will Smith narrowly escaped bankruptcy thanks to NBC signing him on the sitcom, The Fresh Prince of Bel-Air. It was a close call, but fortunately the sitcom was a hit and put Smith on the road to stardom.

Now, you certainly aren’t in debt as the result of reckless spending, I’m sure! The average Californian’s debt problems are due to unforeseen  circumstances, such as the loss of a job or unexpected medical bills. Whatever the case may be, David Lozano is here to help! Contact me for a free consultation. Bankruptcy is not an end-all, it is merely a stepping stone to getting your life back on track!

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

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Are Mom and Dad making sacrifices for your sake?

To cope with the current state of our economy people will often take on extra shifts at work or cut back on frivolous spending. But what about individuals who are retired and their frivolous spending consists solely of buying the grandkids holiday and birthday gifts? That’s right, I’m talking about generous Grandmas and Grandpas here!

The elderly are struggling with debt just as much as the rest of society. A common assumption has been that social security and a good 401(k) plan will be enough to support the elderly after retirement. What I’ve seen happening more and more frequently, however, is elderly folks dipping into their savings for the sake of their children and grandchildren.

Supporting ones children is a hard habit to break. So when Mom and Dad see their son or daughter low on cash, struggling with unemployment, beset with unexpected hospital bills, or in need, the automatic response is to help out.

Lending cash when one is on a fixed income is difficult though. Many elderly men and women turn to borrowing against the equity on their house or relying on credit cards to get by. Unfortunately, both of these methods lead to trouble! Taking out a second mortgage can easily result in foreclosure and missing a few payments on the credit card quickly develops into hefty credit card debt. The elderly may even go without prescribed medication or scrimp on food in an effort to keep up with their bills.

No one likes the thought of dear old Grandma and Grandpa risking their health and comfortable living during retirement! That’s why it is important that elderly individuals get professional financial advice before it comes to that!

Bankruptcy was designed to give people relief from their debt! Mom and Dad have been taking care of you all your life! It’s probably about time to return the favor. Contact me for a free consultation. Together we will make sure that your elderly loved ones can enjoy their retirement to the fullest!

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

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Considering a payday loan to get you by? Bankruptcy attorney David Lozano strongly advises caution!

Commercial and Internet ads for payday loans are a dime a dozen these days. And if you’ve seen one you’ve seen them all. Payday loans all work basically the same way–you write a check (or grant the lender permission to access an electronic account) to cover the money you are borrowing plus the finance charge. This transaction is then held by the lender until your next payday. Of course if you don’t have the money to cover the cost of the loan by your next payday you’re pretty much out of luck!

It is likely this and many other reasons why payday loans are legal in only thirty-seven U.S. states–with our sunny California being one of them. Nine times out of ten the consequences outweigh the benefits of getting a payday loan. And with online payday loans, there is an added risk of fraud. You hear about online scams all the time, and they are definitely something you do not want to happen to you! You need to be careful when giving out financial information in any situation, but be particularly careful when it’s over the Internet to a payday loan service!

If you find yourself struggling to make ends meet a payday loan is probably not your best option. Contact me for a free consultation and we will discuss your financial situation to determine what is the best course of action for you!

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

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What if creditors continue to call after your debt has been discharged? (Bankruptcy attorney David Lozano urges you to stand your ground!)

Once your debt has been discharged by the bankruptcy court, creditors and collection agencies are out of luck! Third party collection agencies have been known to contact a person and demand payment even after that person has declared bankruptcy and had his or her debt discharged. Do not fall prey to their subterfuge! By taking responsibility and filing bankruptcy you have cleared your name! That means that anyone calling about debt that has been discharged is out of line!

If creditors or third party collection agencies call after the bankruptcy court has approved your bankruptcy claim, take appropriate action! Tell them that the debt has been discharged. If they do not accept that fact or continue to hassle you, don’t give in! They are in the wrong, so stand your ground! Inform them that you will contact the Federal Trade Commission if they continue to call. Attempting to collect on debt that has been discharged is illegal and they can be held in contempt for doing so!

The whole point of filing bankruptcy is to get a fresh start without having to worry about creditors! As a bankruptcy attorney, I can help you make sure that no one takes advantage of you! I look out for my clients before, during, and after the bankruptcy process so that you can enjoy your debt free life with peace of mind!

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

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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