Wednesday, June 8, 2011

May Illegal Aliens file bankruptcy?

By Crispin Lozano

Question: Is there a requirement to file for bankruptcy that you must be a legal alien or citizen?

Answer: There is no requirement in the Bankruptcy Code that requires legal status in the United States to file for bankruptcy. A debtor could be any person in the United States who has a Social Security Number or Taxpayer Identification Number (TIN) with valid Identification Document and a valid address.

Question: Does the creditors knew that some debtors filing bankruptcy are illegal aliens?

Answer: The banks have issued bank accounts to people who do not have a valid social security number but have Taxpayer Identification Number. They must have known that persons who do not have social security number and working based on Taxpayer Identification Number must have lacked legal papers to stay in the United States.

Question: What precautions must illegal aliens do before filing bankruptcy?

Answer: Before you file for bankruptcy you must consult with an immigration lawyer about your own personal situation. Be aware that the office of the Trustee and the Bankruptcy Court are very close to the office of Department of Homeland Security which monitors illegal aliens. If you file for bankruptcy, the Federal government which will include the DHS will have an access to your personal records such as whether you are filing your tax returns, whether you are not paying child support or you have committed certain crimes or infractions. Failure to file tax returns or failure to pay child support will affect your immigration application for benefits.

The immigration law requires that all applicants for permanent resident and citizenship have good moral character. Good moral character requires not having been involved in any crime especially crimes involving moral turpitude or fraud. Examples of crimes of fraud are:

Lying on your credit applications;
Using other persons social security number;
Using a fake social security number;
Fraud in dealing with creditors.

If the bankruptcy court found out that you have committed any one of the above infractions or crimes, you could be sent to prison and your immigration status will be in jeopardy.

Note: This is not a legal advice and you should consult with an immigration attorney about your case.

Immigration News

The U.S. Supreme Court upheld the Arizona Immigration Law requiring mandatory use of E-verify (internet based system) by checking legal work authorization of all employees and using sanctions for employers who intentionally hire illegal aliens by suspending or revoking their state license.

On March 1, 2011, we received an approval of adjustment of status by an Immigration Judge for an alien who was originally denied adjustment of status based on petition by employer.
On January 25, 2011, we received an approval of a self-petition by a battered spouse. Her entry with a different name was forgiven.

On December 23, 2010, we received an approval from the Immigration Court for a waiver of misrepresentation for an alien who entered as single but actually married.

On January 5, 2010, we received an approval in Immigration Court of an adjustment of status based on good faith marriage despite an age difference of 18 years.

Abused spouse of U.S. citizen or permanent residents can self petition even if there is a problem with the entry documents such as C or D visa or entry without inspection or assumed name.
Individual Tax Identification Number (ITIN) can be used for filing tax returns and is required before bank accounts can be opened.

Bankruptcy News
Collection actions continue and you can be sued if you are in debt settlement.

Chapter 7 will eliminate all unsecured debts. If you are near retirement age, you must eliminate most of your debts.

Bankruptcy will stop foreclosure actions. If your trustee sale date is 10 days before, you can still file for bankruptcy.

If your salary is being garnished, you have a court case about debts or you are being harassed by creditors, bankruptcy can stop garnishment, court cases, harassing creditors and eliminate the debt.

Bankruptcy is cheaper, faster and safer than debt settlement which has no guaranteed success.
Preserve your health, eliminate stress and live a happy life by eliminating your debts which is the root of all problems.

Crispin Caday Lozano was born in the Philippines and a naturalized U.S. citizen. He is an active member of the State Bar of California, the American Immigration Lawyers Association and the National Association of Consumers Bankruptcy Attorneys. He specializes in immigration law and bankruptcy law. He earned his Juris Doctor at Western State University College of Law in Fullerton, California. He is also a Certified Public Accountant, a Real Estate Broker and a Bachelor of Business Administration Cum Laude graduate. He has four offices which are located in Hayward, San Jose, and Cerritos, California. You can contact him at telephone number 1-877-456-9266.


  1. Thanks for sharing this information about bankruptcy through your blog site.It was very helpful to me.Thanks a lot for this.

  2. If you merely want to come to the U.S. for traveling, having fun, seeing friends etc. a B-2 visa , also referred to as a tourist visa shall be appropriate.

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  4. If you are planning to move in USA contact expert immigration attorney and make your way easier.
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