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Chapter 7 Bankruptcy

Chapter 7 or Chapter 13? (Hint: Los Angeles bankruptcy lawyer David Lozano can help you figure it out!)

A lot of people visit me for a free consultation wondering what type of bankruptcy to file, if any. I am always happy to discuss this matter–it’s what I’m here for!

Southern California bankruptcy lawyer David Lozano will help you get through your financial troublesIn a nutshell, Chapter 7 bankruptcy eliminates your debt completely while protecting most or all of your assets, including (usually) your home, car, and personal belongs. It also puts an end to the constant calls, letters, liens, and lawsuits from creditors. Not only that, there are no strings attached. Chapter 7 bankruptcy makes sure that once the debt is gone, it’s gone for good!

Chapter 13 bankruptcy provides a reorganization plan that makes repaying your debt a reality once more. It takes the same amount of debt and breaks it done into manageable portions to be paid over a determined amount of time. Chapter 13 bankruptcy helps you catch up when you’ve fallen behind–and it also puts an end to the calls, letters, liens, and lawsuits!

So which bankruptcy claim is better? In general, it’s a little harder to qualify for Chapter 7. Plus, it all depends on your particular circumstances, which is where I come in. Together, we can settle your debt using one chapter or another!

Don’t forget: David Lozano is your best source of bankruptcy information in Los Angeles. I will work hard to help you make the best choices and get 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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Why I’m writing a blog on bankruptcy

In my first two posts, I introduced myself and presented you with some recent news in the bankruptcy world. Perhaps it’s now time for me to share with you the purpose of this blog.

The main reason I am writing is that I know a lot of people have specific questions right here, right now, and they need help. (If you do not find the answer to your question here, I invite you to look at my main website. Or, better yet, call me and I’ll be happy to set up a time to answer your questions in person.)

I know also that, in these financially trying times, falling behind on bills can happen to anyone. Everyone knows someone who needs help. That’s why we’re one of the most referred bankruptcy practices in Southern California: people know they can send their friends and relatives here with complete peace of mind.

So maybe you have questions and concerns now, maybe you have someone you’d like to refer, or maybe you’re just curious. That’s all fine, and this blog is for you.

Now let me assure you in no uncertain terms, there is no shame in bankruptcy. Declaring bankruptcy is simply a way to put yourself back on the right track. It is taking responsibility by not allowing debt to run your life for you.

You have probably gone the extra mile and stretched your fair share of dollars at one time or another in your lifetime. It’s when your dollars are overstretched and creditors are still demanding more money that I offer my services.

Unforeseen circumstance happen, that’s a fact of life, and many of them come with big bills! You name it: medical bills for you or your family, an unexpected pay cut or a lost job, divorce, family crisis, a car accident that totals your car–anything can happen.

When the bills start piling up, you can take comfort in the fact that our practice is only a phone call away! I guarantee that after your free debt consultation, things will look a lot more manageable and a lot more promising!

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

New Rules for Debt Settlement Companies

As a Southern California consumer bankruptcy attorney, I have spent the last 18 years helping people get out of debt.  I understand the strain that my clients feel, and I consider it my duty to warn them against debt relief options that will not help.  Masquerading as consumer counseling services, debt settlement companies promise to settle consumer debts at a fraction of the money owed.  This is simply not the case.  Thankfully, the Federal Trade Commission (FTC) has recently taken measures to reign in the bad business of debt settlement.

 Due to overwhelming complaints to the Better Business Bureau in 2009, the government agency that brought you the Do Not Call List is back with more protections for the American consumer. As of Monday, September 27, the FTC began Phase I of revisions to the Telemarketing Sales Rule. This latest action by the FTC is an attempt to keep consumers safe from the abusive practices of debt settlement companies.

According to Jon Leibowitz, Chairman of the FTC, the Monday telemarketing reforms are part of sweeping FTC policy revisions “to combat consumer abuse by fraudulent debt relief companies.” As of Monday, the new rules, in addition to prohibiting them from outright lying, require debt settlement companies to share information they previously kept hidden— for example, how long a settlement will take and how much it will cost the consumer. In addition, debt settlement companies must let potential clients know that settlement will lead to a drop in their credit and may expose them to future lawsuits.

Phase II of reform goes into effect October 27, 2010 and specifically bans debt settlement companies from collecting fees before “at least one of the consumer’s debts is settled or significantly reduced.” The FTC is acting in response to debt settlement company practices of collecting monthly fees without producing significant results. Rather than helping American consumers achieve peace of mind, debt settlement companies have cost them large sums of money in fees, and led to further legal action on the part of creditors. The rules change next month, but beware: debt settlement companies will scramble to collect as many fees upfront as possible before the October 27th execution of Phase II.

Debt settlement is currently illegal in Arizona, Georgia, Hawaii, Louisiana, Maine, Mississippi, New Jersey, New Mexico, New York, North Dakota, West Virginia and Wyoming.  And, because debt settlement companies are for-profit, most will cease practice after the FTC change on October 27th, citing the advance fee ban as prohibitive. But the consumer will not be left out in the cold. Consumer credit counseling services are available for guidance, and Chapter 7, and 13 bankruptcy are proven means to achieve financial stability and the peace of mind that comes with being debt free.

About The Law Offices of David Lozano alc

A law firm that specializes in Chapter 7 and Chapter 13 bankruptcy cases.  The firm is affordable, has payment plans, can immediately stop creditor phone calls, lawsuits, wage garnishments and foreclosures, as well as deal with the frustration of loan modifications.  The firm represents consumers, small businesses and corporations.  It should also be noted that Attorney David Lozano is not just a regular bankruptcy attorney, but is one of the few Board Certified Specialists under the new bankruptcy law.

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