About Bankruptcy

• Eligibility
• When Should You Consider Filing?
• Chapter 7 Bankruptcy
• Chapter 13 Bankruptcy
• Fair Debt Collection Practice
• Warning on Debt Relief Services

• Bankruptcy’s Do’s and Don’ts
• The Facts That You Need To Know
• Mandatory Disclosures
• The Automatic Stay
• Exploring Your Options – Alternative to Bankruptcy
• Bankruptcy and Family Law

Warning on Debt Relief Services

The Truth

There are many debt relief companies out there, looking for your business. All companies are not created equally. Some debt relief companies are in business to help consumers get out of debt. Unfortunately, some debt relief companies exist to take advantage of consumers who are already struggling in their financial situation. If you are not a cautious and skeptical consumer, you are allowing yourself to be vulnerable to bad debt relief companies who want to prey on you. They only want to take your money out.

Be Careful About Debt Relief Services

The two most common debt relief services aside from bankruptcy:

• Debt Settlement Companies: Debt settlement companies provides a debt solution designed for people in a financial hardship who have trouble making their monthly payments or will soon have trouble making them. Debt settlement firms obtain reduced pay-off balances by negotiating with creditors. Debt settlement consolidates your payments, but not your debt. The problem is that your creditors have to agree to the proposed repayment plan. In the event they do and you settle your debt, you may face significant tax consequences.
• Debt Consolidation Companies: These companies offer to work with your creditors to get your debts consolidated and lower monthly payments. This is a largely unregulated industry, so there is often no guarantee that they will actually do anything for you after you pay them.

Bankruptcy is not the only solution for debt relief, but it is the most powerful among all debt relief services. When you file for bankruptcy, you get your protection instantly from creditor’s actions. A debt relief service may offer benefits in some circumstances but cannot guarantee the level of protection that bankruptcy offers. We strongly advise you to thoroughly research any debt relief service.

Contact Us

If you are exploring your debt relief options, you have another option available to you, and that is bankruptcy. It is not for everyone, but it may be right for you. At the Lozano Law Offices, we can direct your path to avoid the scams that are prevalent in the debt relief industry.  Call (510) 538-7188 or contact us online for a free initial consultation.  It could be your first step on the road to a stress-free debt relief.