WHAT’S in store for us for 2022? I was just thinking that this is the year we beat the pandemic permanently and the coronavirus decides to mutate into something that’s mild and not fatal which omicron appears to be based on all current data.
But omicron is 10 times more contagious than the original coronavirus so keep masking and double mask even if you have the booster shot. Avoid going to Costco on Fridays to Sundays as people tend to flock there on weekends. Mondays and Tuesdays have the thinnest crowds. If you have to go get stuff there, make sure you keep social distancing although that’s easier said than done.
Omicron is so contagious that we just clocked 1 million new cases in one day on Monday, January 3 in the good old USA. It’s spreading like wildfire. We were all packed and planned a family road trip out of state during the holidays but at the last minute decided against it when we read that new omicron cases had reached a one-day high of half a million. It’s in every state of the union. Fortunately, all the data suggests that it’s not fatal. The symptoms are like the common cold but with a sore throat, headache, and shortness of breath. The incubation period is two days and it’s gone in four days. In fact, the experts say that half of the common cold now is actually omicron. If you’ve had the booster and have no comorbidities, you’re good to go. You’re safe even if you get it. It won’t kill you. It just stays in the upper respiratory area and does not get into the lungs where it can kill you.
If you double mask, you cut infection risk by 70%. So mask and double mask. It’s just safer for everyone since all of us breathe the same air. It doesn’t matter what our race is, we breathe the same air. Racial distinctions and arguments of the superiority of one race over another are so stupid and idiotic. If one race were indeed superior, then it stands to reason that their DNA should prevent them from getting infected and dying from the virus, right? But there’s no such thing is there? In the last two years of the pandemic, no race was spared. All races succumbed to the virus. Skin color or the lack of it was no defense against the virus. As long as you’re human, the virus will hunt you down and get you.
Let’s get back on track. We know we can protect ourselves with the booster and masking from the virus. But how do we protect ourselves from debt? Well, if you still can, just don’t borrow money. Or, if you borrow money, make sure to pay it off immediately so it does not accumulate and mutate into something unmanageable. Debt is just like the virus, it mutates into something so debilitating it can make your life really miserable.
Am I exaggerating here? Nope. Clients are in their 50s. The Husband and wife have a household income of $100,000 a year, gross, before deductions. They have three kids who are all done with college and live by themselves, with their own incomes. Their mortgage payment is $2,500. Home insurance and real estate taxes are another $500. Two car payments total $800. Just the house and cars need about $4,000 a month. They still have to eat, pay for other necessities, for gas, car insurance, etc. Even if they gross $100,000, after deductions, they have $6,000 a month. They have a tight budget because $6,000 net covers all monthly necessities only, namely food, shelter and clothing.
With $6,000 net a month, there’s nothing left to save or for additional debt service. It’s great to know all your kids are already self-sufficient, sure that’s a big relief, but what about the clients’ own financial situation? The problem is they have $30,000 of credit card debt. They need $1,000 a month (which they don’t have) for minimum monthly payments to keep the $30,000 current each month. Where’s the money coming from? Not everyone likes to drive for Uber. It’s true you can get another $1,000 a month driving for Uber. But not everyone is made for Uber, especially for those with back problems or diabetes is what I hear in stories from clients who actually rely on Uber for extra income.
In the clients’ case, neither husband nor wife likes to drive for Uber. So what’s happening is that they are using new debt to pay the old debt, borrowing from Peter to pay Paul. Yes, it’s a mini Ponzi scheme that they are perpetrating on themselves. In 2022, they will add $12,000 to their credit cards, just to be able to keep the $30,000 current. So by the end of this year, they will owe $42,000, instead of $30,000. So this mini Ponzi scheme will keep on snowballing until they actually hit the wall. When do they hit the wall? They hit the wall when they can’t get new debt anymore. At some point in time in the future, they will reach their borrowing limit where they won’t be able to get new credit cards to service old credit cards. It’s a financial death spiral. It’s a cancerous growth that will eat them up and destroy the quality of their life and ability to save for retirement.
To make a long story short, clients should resolve to get rid of the $30,000 now by Chapter 7 or by Chapter 13. Chapter 7 will just wipe out the $30,000. Chapter 13 will allow them to reorganize with a partial payment plan to handle the $30,000. It’s the right thing to do. Each case is different. Chapter 7 may be good for some people, while Chapter 13 will be good for others.
If you have debt problems, set an appointment to see me but mask up and get the booster first. I got the booster and always double mask when I see clients. Court hearings have been done telephonically and by zoom since 2020.
It also helps to pray to our God, Jesus and the Blessed Mother Mary for divine protection against the virus, and financial problems, because we have a God who loves us and showers us with infinite mercy. All we have to do is humble ourselves and pray.
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Disclaimer: None of the foregoing is considered legal advice for anyone. There is absolutely no attorney-client relationship established by reading this article.
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Lawrence Bautista Yang specializes in Bankruptcy, Business, Real Estate and Civil Litigation and has successfully represented more than five thousand clients in California. Please call Angie, Barbara or Jess at (626) 284-1142 for an appointment at 20274 Carrey Road, Walnut, CA 91789 or 1000 S. Fremont Ave., Mailstop 58, Building A-10 South Suite 10042, Alhambra, CA 91803.
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