[COLUMN] What are your options if you cannot pay your debts? —

If you travel east on the 10 freeway from Los Angeles, you will eventually end up somewhere in Florida. It’s a long drive to cover about 2,800 miles, but that’s where Highway 10 will take you. I know it’s expensive right now to do this road trip because gas prices are very high, between $5 and $6 a gallon due to the war in Europe for the last 3 weeks, but what i’m saying is if you take that highway, you’re gonna end up in florida. If you don’t want to end up in Florida, don’t take highway 10, right?

This analogy is similar to your finances. If you have borrowed too much money in the past, this conduct will eventually lead you to a situation of non-payment of your debt. Just like being on the highway, borrowing too much money will prevent you from paying off your debt. As the wise say, it is easy to borrow money, but very difficult to pay it back. That’s how it works. So before you start down the road of borrowing money, think twice.

If you are already in the situation of having too much debt, which prevents you from paying your debts in a timely manner, then what are your options?

The first option is to pretend that nothing is happening and nothing else will happen, and hoping that the creditors will simply forget about you. The problem with this option is that it does not work. Once you are late in payment, your creditors will harass you day and night. They will pretend to care and offer you all sorts of payment plans. In other words, they still want to get paid. And when the time comes, they will start suing you to recover the money you owe them. If you are an ostrich, you will go for the first option.

Even countries can default on their debts. Take Argentina for example. It has defaulted on its debt nine times since becoming independent from Spain. The last default was in 2002. Creditors sued Argentina in New York and she offered a payment plan. Now he owes over $65 billion and will soon default again. Creditors will start suing again. Russia could soon default on its debts as Western sanctions cripple its economy.

The second option is to negotiate and settle your debts one by one. Sometimes clients tell me they feel guilty, so they want to negotiate and settle. So I tell them, realistically, MasterCard and Visa don’t care if you live or die. They estimate that around 7% of their customers won’t be able to repay them, which adds to their higher interest rates. So don’t feel like there’s some sort of love affair between you and your creditors. There are not any.

The third option is to clear your debt with Chapter 7 or reorganize your debt and pay off some of it in Chapter 13.

Chapter 7 is what is called the “fresh start” without accumulated debt. You can keep most, if not all, of your assets that you can exempt under applicable law, get rid of all your debts so you can be a productive citizen again. Let’s say you owe $60,000 in credit card debt. You own a home with $400,000 of equity in LA County. You pay for two cars. You have 2 children, aged 9 and 12. Your household income is $80,000 gross per year. Assuming you’re otherwise eligible for chapter 7, you write off $60,000 in credit card debt (it’s canceled by court order), keep your house and cars and everything you own assuming they are exempt. Your income remains at $80,000 gross per year, but you no longer have to pay credit cards by $60,000. You get a “fresh start” and can start saving money again. You need $1,800 per month to keep $60,000 worth of maps up to date each month. After clearing the $60,000 from Chapter 7, you no longer need to set aside $1,800 per month to pay off your cards, instead you allow yourself $1,800 in savings each month.

On the other hand, if for some reason Chapter 7 isn’t for you, explore Chapter 13. In Chapter 13, you might only have to pay $100 a month for 60 months, or 10% of $60,000 in credit cards. Each case is different. This may not apply to you depending on your situation. After paying $6,000, the court will discharge the remainder of the outstanding $54,000. It’s still a great repayment plan, isn’t it?

praying always helps

It also helps to pray to our God, Jesus, and Blessed Mother Mary for divine protection from the virus and financial troubles, because we have a God who loves us and showers us with infinite mercy. All we have to do is humble ourselves and pray.

What is the current evidence that God and Jesus are divine and almighty? I refer you to exhibition A, the incorruptible body of Carlo Acutis!

Current Ongoing Physical Evidence God is Almighty – Incorruptible Body of Carlo Acutis who died in 2007 at the age of 15: Look at the incorruptible body of Blessed Carlo Acutis who died at age 15 in 2007. You can view his body in Rome, Italy, now 14 years after his death. He seems to sleep in his jogging and his rubber shoes! It is a perfect example of a continuous sign on earth that the God of Moses, our God, my God, is almighty and almighty that he even suspends the natural laws of biology and physics without any effort. He raised His one and only beloved Son from death on the cross. Indeed, He has power over death.

In fact, I thought, “What would other religions believe if they actually saw the incorruptible body of Blessed Carlo Acutis?” I think even Buddha, if he were alive today, would truly believe that Yahweh is the only 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 sort of explanation of the effectiveness of modern mummification. Come on, man, this is shit. The truth is in plain sight. Believe in your own eyes that the one true God is almighty and his name is Yahweh, “I am who I am”. He is the alpha and the omega, the beginning and the end.

Seven of my high school friends died in 2021. They all went to meet their creator. I would like to mention their names here: Ricardo A, Victor Y, Jerry L, George C, Jimmy G, Edward N and Ricardo D. Three died of COVID, one slipped and fell in the bathroom, one of a heart attack, two from cancer. I pray that they will all be in heaven with our Lord and enjoy eternity with their loved ones.

” Do not worry about anything. Instead, pray for everything. Philippians 4:6.

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Disclaimer: None of the above is considered legal advice to 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 over 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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