[COLUMN] Higher inflation and higher interest means more bankruptcies

We’re now 3 years into the pandemic which started in 2019.

The very sad American tragedy of more than 1.0M Covid deaths

In America, we have the great tragedy of having more than 1.0M Americans who died from Covid. Even with the new bivalent booster which specifically protects against Omicron and its subvariants and the original and Delta virus, we still have 400 Americans daily dying from it. Compare our number of dead Americans from Covid, to China’s Covid related deaths of 5,266 as of September 22, 2022 and you will realize the magnitude of the tragedy that American families have suffered and continue to suffer. Yes, no matter how you justify and look at it, we had a massive failure of leadership that has caused our American tragedy. Instead of requiring masking early on in 2020, which on hindsight would have saved hundreds of thousands of us from getting infected and dying from “Rona”, we were told that it was nothing to worry about, that it would go away with hot summer weather, that all you needed was to drink or inject yourself with disinfectant, or expose yourself to sunlight, and all the while pointing the finger at China with Kung flu, the Chinese virus, thus creating and fomenting anti Asian hate crimes all over the country. But China only has 5,266 Covid deaths as of September 22, 2022 and we have more than a million dead Americans from Covid and more than a million American families suffering the loss of their loved ones. It’s the theater of the absurd that we were shown which we just acquiesced to.

We do not pray hard enough to the Sacred Heart of Jesus to ask for his infinite mercy

We have this tragedy here because as a people and as a Christian country, we did not and we do not pray enough to and seek the infinite mercy that flows from the Sacred Heart of our Lord and Savior, Jesus Christ. We think we are so great, being the most technologically advanced super power on this planet, with the power to kill all the humans who live on this earth ten times over. But we don’t pray enough to the one true God, Yahweh, and His dearly beloved Son, Jesus Christ, to rescue us from this kind of avoidable massacre of our innocents. Yes, all of our people who were killed by the virus were all innocent. They were guilty of nothing. Yet they were all sentenced to death by a total failure of leadership.

High prices for consumer goods, food and gasoline

As we emerge out of this pandemic, unless of course another variant comes out that evades the new booster, we are now faced with the highest inflation rate in the last 40 years of almost 10%, jacking up the prices of consumer goods, food and groceries, by 30% to 50%, not to mention very high gasoline prices which have reached $7/gallon at on point in time. Interest rates are way up. 30 year fixed rate mortgage rate is almost 7%. Credit card interest is north of 20%.

Rent moratoriums are ending

On the other hand, rent moratoriums will be ending soon. Gov. Newsom has just announced the rent moratorium in CA will end in January of 2023. So renters will have to resume rent payments and make arrangements to repay unpaid rents which can be a significant amount by February 1st, 2023. My client just wiped out  $65K of unpaid rent with his Chapter 7 petition filed last week.

From a financial budget standpoint, it’s going to be really tight for a lot of families because of the much higher cost of food and gasoline, and the resumption of rent payments.

No more government financial help

There won’t be any more government relief to rely on to make ends meet. No more stimulus payments. No more PPP loans for small businesses to pay payroll and rent. No more unemployment payments to the self employed. Nada. Zero government financial assistance to rely on.

Families will in the near future require bankruptcy relief to make ends meet. How so? You don’t need to be a rocket scientist to figure this out. The family income remains the same while necessary expenses have increased by at least 40%. Rent payment has to be made or the family will be homeless. If the family net income is $5K for a family of four, rent is close to $2,000, food is close to $1,000, utilities, car payments, insurances another $2,000, there’s no money left for debt service.

Budget squeeze means no money left for debt service

Debt service is what is required to make minimum payments on credit cards. If your family owes $30K of credit cards, you need another $1,000 to make interest payments just to keep the $30K current. Where will families get an extra $1,000 a month? Drive Uber or Lyft? It’s not as simple as saying it. Maybe you can drive Uber on Sundays, right? Yeah, just work 7 days a week and die early, right? You’ll be ripe for a heart attack or a stroke after a couple of months. Your family needs you alive, not dead.

So, the simple way out of this financial catch 22 is just to get a fresh start without accumulated debt. Wipe out the $30K with a bankruptcy discharge and become productive again. Our constitution allows a fresh start with bankruptcy law. Keep most if not all of your assets but get rid of all accumulated debt.

Walt Disney filed Chapter 7 twice before his Disney Empire became wildly successful. Milton Hershey filed Chapter 7 once before his Hershey chocolates became the biggest chocolate business in the world. They know the necessity and benefit of a fresh start without accumulated debt. You should too, for the sake of your family.

Praying always helps

It also helps to pray to our God, His beloved Son, Jesus Christ, and the Blessed Mother Mary for divine protection against financial problems, because we have a God who loves us and His beloved Son, Jesus Christ, showers us with infinite mercy. All we have to do is humble ourselves and pray to the Sacred Heart of Jesus for a drop from his ocean of infinite mercy. Jesus revealed in 1930’s to Saint Maria Faustina Kowalska of Poland that all sinners which we all are and those who do not believe in God and those who do not yet know Jesus, should all be brought to His sacred heart and be submerged in the ocean of His infinite mercy, for the sake of His Sorrowful Passion. Anything you ask for when you pray the chaplet for His divine mercy will be granted, if compatible with His will. Moreover, you are guaranteed a peaceful death.

What is the current proof that God and Jesus are divine and all powerful? I refer you to exhibit A, the incorruptible body of Carlo Acutis!

Current ongoing physical proof God is Almighty: Incorruptible body of Carlo Acutis died 2007 at age of 15

Look at the incorruptible body of the blessed Carlo Acutis who died at 15 in 2007. You can look at his body in Rome, Italy, now 14 years after his death. He looks like he’s just asleep in his jogging suit and rubber shoes!  That is a perfect example of an ongoing sign on earth that the God of Moses, our God, my God, is almighty and all-powerful that He even suspends the natural laws of biology and physics without any effort. He resurrected His one and only beloved son from death on the cross. Indeed, He has power over death.

I have actually thought, “What would the other religions believe if they actually saw the incorruptible body of the blessed Carlo Acutis? I think even Buddha, if he were alive today, would truly believe that Yahweh is the one True God.” No need to think about reincarnation and nirvana because his incorruptible body is available for all to see in Rome, Italy. We won’t need any kind of explanation on the efficacy of modern day mummification. Come on, man, that’s all bull. The truth is in plain sight. Believe your own eyes, that the one true God is all-powerful and His name is Yahweh, “I am who am.” He is the alpha and the omega, the beginning and the end.

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Disclaimer: None of the foregoing is considered legal advise 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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