About Bankruptcy

The Facts That You Need To Know

The fact is that credit industry wants to make as much money as it can from you. They want to discourage you from filing for bankruptcy protection even if bankruptcy is a good and legal option for you.  In an effort to collect on debts, creditors can be aggressive and frequently try to frighten hardworking people.


At Lozano Law Offices, we want to make sure those individual that are experiencing financial hardships understand the truth about filing bankruptcy. We believe that every individual deserves to understand the benefits of bankruptcy, even if he or she chooses not to file. If you are looking for freedom from your debts, we are more than happy to sit down with you and listen to all your financial concerns.


Lozano Law Offices has helped many people get the debt relief they need through Chapter 7 and Chapter 13 bankruptcy. During a free initial consultation, we will meet with you, discuss your options, and answer all your questions about bankruptcy and how it can affect your life. Do not let the credit industry scare you. Get the facts!


The new bankruptcy laws that went into effect in October 2005 are not as difficult as you might think.


The law revision made it sound like it would be much more difficult-perhaps impossible-to file bankruptcy after the new bankruptcy law went into effect.  These laws created more steps and paperwork for bankruptcy filings.  Filing bankruptcyis a little more work and requires a little more preparation than it did before (although most of that work falls more on your attorney than it does on you).


Most individuals who file for bankruptcy do not lose any of their property.


Although creditors may try to scare you by insisting you will lose your home and personal possessions, do not trust them. The truth is that a majority of individuals who file bankruptcy end up keeping most if not all of their property.  The U.S. bankruptcy code provides exemptions that allow you to keep a certain amount of value in large property like your home and your car. In addition, there are broad exemptions for clothing, furniture and personal property.


You can rebuild your credit after bankruptcy.


Getting rid your debt through bankruptcy is a first step toward rebuilding your credit score.  Once your debt is discharged, you will be able to work on repairing your credit score. Many people get approved for a secured credit card or loan within a year after filing bankruptcy. You may even have the ability to avoid high interest rates.  Very soon after you’ve filed bankruptcy, you’ll likely begin to get credit offers. You may want to exercise great caution in deciding which offers to accept, and when. Many of the creditors who will solicit your business right after bankruptcy will attach outrageous fees and charges to these accounts-the kind of unexpected, mounting costs that will put you right back in financial trouble. However, by accepting credit accounts with utmost care, and can handle making payments that are timely and are more than the minimum required, you should be able to begin to rebuild your credit.


Many of the people filing bankruptcy are honest, hard-working, and good people who have fallen on hard times.


The credit industry would like you to believe that only deadbeats file bankruptcy. However, most people file bankruptcy for one of three reasons-or for a combination of these reasons: divorce, job loss, and extraordinary medical expenses.


Your creditor may not be able to bother you anymore during your case once you file for bankruptcy.


In most cases, when you file for bankruptcy protection, the court issues an “automatic stay”. The automatic stay is a court order that tells your creditors that since you’ve filed for bankruptcy protection, they can’t contact you anymore.  Here are the three most common protections upon filing of bankruptcy:


  1. Bankruptcy stops creditor harassmentAs soon as you file a bankruptcy petition, the court orders an automatic stay, preventing creditors from contacting you any longer.
  2. Bankruptcy halts home foreclosures. The automatic stay that prevents creditor harassment also puts a halt on all foreclosure actions against your home.
  3. Bankruptcy halts wage garnishments. If your creditors are garnishing your wages, the automatic stay will put an immediate stop to their collection actions.


Bankruptcy Law provides that creditors who violate the automatic stay can be required to pay damages-in some cases even punitive damages. There are exceptions in certain types of cases and for certain debts like criminal restitution, but in most cases and for most debts, the automatic stay will protect you from any creditor contact.

Toll Free 1-877-4LOZANO for free consultation or Schedule an Appointment