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Living Paycheck to Paycheck

James Doan - Wednesday, September 19, 2012
A survey by the America Payroll Association released today (http://news.yahoo.com/more-two-thirds-u-live-paycheck-paycheck-survey-202040328--business.html) shows that more than two thirds of Americans are living paycheck to paycheck.  A whopping 68% of Americans cannot save any money because their expenses meet or exceed their pay.  What then happens when an emergency arises, be it medical, car, home, repairs, etc?  Many of you reading know the answer, the unwelcome expenses have to be charged with the hope of paying it off later.  The problem of course is, that later never comes.  Often one credit card, let's say "Peter" is used to pay another called "Paul."   Here the web of debt is laid, which quickly ensnares a family.

It is not uncommon to have more than one emergency expense, and because a household living paycheck to paycheck cannot save, this can be the straw that breaks the camel's back.  Credit cards may be maxed out.  It is then that one accrues late fees, falls behind on mortgage and car payments, and the snowball quickly becomes overwhelming.  Before you know it, you can be trying to stop foreclosure, car repossession, and harassing phone calls.  Adding insult to injury, a judgement, lien or tax delinquency may lead to the need to stop wage garnishment, simply to purchase food for the family.  Is it any wonder so many Americans suffer from anxiety and depression?

If you are one of the 68% of Americans living paycheck to paycheck, find a way to cut expenses.  If you are spending a good chunk of your paycheck attempting to pay down credit card debt, you might want to address the situation before an emergency expense arises.  Whether you are struggling to manage debt, (even if you still have a good credit rating) or you are struggling to save your home, Doan Law Group can help.

Contact Doan Law Group at 888-363-6529 and learn how to get out of debt.  Sometimes, getting out of debt can be as simple as filing chapter 7 bankruptcy, thereby eliminating 100% of your dischargeable debt.  

Chapter 13 bankruptcy allows wage earners to repay a portion of the their debt over three to five years. Some Chapter 13 debtors are able to strip their second lien, or eliminate it entirely, if the value of the home is less than the amount owed on the first trust deed.

If you woke up and smelled the coffee, and realized that your upside down house has turned into an anchor around your ankle as you struggle to keep your head above the choppy stormy waters of the sea of this economic uncertainty, then maybe you ought to consider unloading your house with a short sale.  Attorney Steve Doan is also a real estate broker who runs Doan Real Estate, and with integrity and ingenuity, Steve Doan has been able to work magic where other less experienced real estate people have failed.

The five Doan brothers, and their dad, have been helping those in financial need for nearly 20 years.

Contact Doan Law Group today to see if you are qualified for bankruptcy.  888-DOAN-LAW | 888-362-6529.  And remember, don't vote for Obama, or your financial situation will likely be much worse than it is today. 

Gotta Love Change

James Doan - Monday, August 27, 2012
I usually delete most of the mass emails that somehow end up in my inbox every day (all day).  But this one caught my eye.  I look at the numbers below and think about the "change" platform from Obama's last election.  Now his motto is "forward." 

I doubt this was the type of change any one was thinking about when they voted for and elected Obama as president.  I am thoroughly perplexed as to how anyone can continue to vote for him.  

Take a look at the change below and think about how you have personally benefited therefrom:

  JANUARY '09 TODAY CHANGE SOURCE
Avg. Retail price/gallon gas in U.S. $1.83 $3.44 84% 1
Crude oil, European Brent (barrel) $43.48 $99.02 128% 2
Crude oil, West TX Inter. (barrel) $38.74 $91.38 136% 2
Corn, No.2 yellow, Central IL $3.56 $6.33 78% 2
Soybeans, No. 1 yellow, IL $9.66 $13.75 42% 2
Sugar, cane, raw, world, lb. Fob $13.37 $35.39 165% 2
Unemployment rate, non-farm, overall 8% 0.094 24% 3
Unemployment rate, blacks 13% 0.158 25% 3
Number of unemployed 11,616,000.00 14,485,000.00 25% 3
Number of fed. Employees 2,779,000.00 2,840,000.00 2% 3
Real median household income 50,112.00 49,777.00 -1% 4
Number of food stamp recipients 31,983,716.00 43,200,878.00 35% 5
Number of unemployment benefit recipients 7,526,598.00 9,193,838.00 22% 6
Number of long-term unemployed 2,600,000.00 6,400,000.00 146% 3
Poverty rate, individuals 13% 14% 8% 4
People in poverty in U.S.  39,800,000.00   43,600,000.00 10% 4
U.S. Rank in Economic Freedom World Rankings 5 9 n/a 10
Present Situation Index 29.9 23.5 -21% 11
Failed banks 140 164 17% 12
U.S. Dollar versus Japanese yen exchange rate 89.76 82.03 -9% 2
U.S. Money supply, M1, in billions 1,575.10 1,865.70 18% 13
U.S. Money supply, M2, in billions 8,310.90 8,852.30 7% 13
National debt, in trillions 10.627 14.052 32% 14

We used to think that this "change" would be good for the bankruptcy business.  At first, it was.  But now, many of our clients are too broke to file bankruptcy, and have lost just about everything.  As such, there remains little motivation for many to file bankruptcy.  After all, if you don't have anything to lose, why drop $2,000 on a bankruptcy?

Sometimes we have to decline representation for bankruptcy clients who are "insolvent."  This means that even if a creditor sues them for non-payment of a credit-card or other debt, the creditor won't be able to collect anything since the debtor has nothing to take. 

For a free consultation to see if bankruptcy is right for you, call 888-362-6529.  Doan Law Group, California's Largest Family of Attorneys, helps Californian's get out of debt.  Visit us at www.doanlaw.net.  

Sources:

(1) U.S. Energy Information Administration; (2) Wall Street Journal; (3) Bureau of Labor Statistics; (4) Census Bureau; (5) USDA; (6) U.S. Dept. Of Labor; (7) FHFA; (8) Standard & Poor's/Case-Shiller; (9) RealtyTrac; (10) Heritage Foundation and WSJ; (11) The Conference Board; (12) FDIC; (13) Federal Reserve; (14) U.S. Treasury 



WARNING! Foreclosure is Dangerous to Your Health

James Doan - Wednesday, September 07, 2011

By James Patrick Doan, Esq

Today’s economy adds a new meaning to being “home sick.”   

There is no doubt; the housing crisis is making America sicker. What many have believed all along is now considered scientific fact. The threat of losing your home is enough to make you seriously ill. According to a recently published report by the National Bureau of Economic Research, “an increase of 100 foreclosures corresponded to a 7.2% rise in emergency room visits and hospitalizations, and an 8.1% increase for diabetes, among people aged 20 to 49.”

The report also claimed that “each rise of 100 foreclosures was associated with 12% more ER visits related to anxiety in the same age category.” Striking is the fact that “the same rise in foreclosures was associated with 39% more visits for suicide attempts among the same group.”   

The housing barometer, the S&P/Case-Shiller home-price index report came in 5.9% down for the second quarter year over year. Many economists are predicting another wave of foreclosures based on economic uncertainty and continued job losses. 

Doan Law Firm has published several articles relating to health problems being related to financial duress, not just foreclosures. As we see it, there is a direct correlation between a person’s financial health and their physical health. Our focus has always been on the cure for the symptoms brought on by financial duress.

Most of our clients find immediate relief in the form of bankruptcy; some keeping their homes, and others enlightened to find the best exit strategy in having us help them with their short sale. Following is our recommendation for anyone who is under serious financial duress.

Turn Stress into an Asset! Realize that stress is unavoidable but it doesn’t have to be damaging. Recognize that stress is a feeling, not a sign of dysfunction. Focus on what you can control. Contact someone with the experience and ability to help you understand all of your options. 

Create a Plan and Take Control. Below is a list of the services that we review with our clients to determine which alternative might best serve their particular situation.

·         Chapter 7 Bankruptcy eliminates most unsecured debt while retaining the majority of assets.

·         Chapter 13 Bankruptcy is often thought of as the best form of a loan modification because it allows home owners an opportunity to restructure their debt in a way to keep their home but eliminate some unsecured debt including second mortgages.

·         Short Sale - For those who don't qualify for bankruptcy, yet need relief from their upside down mortgage, selling short may be the best alternative…much better than foreclosure.

·         Combination Chapter 7 & Short Sale Plan – especially if it’s too late to save your home, this may be the best option. Using this plan, we eliminate all of the unsecured debt while you stay in your home as long as legally permissible (sometimes up to 12 months), leave your home without any residual debt or tax consequences, potentially settle any unpaid property taxes through negotiation, immediately eliminates all HOA fee exposure, and even negotiate for client relocation assistance (worth thousands of dollars). The most exciting element in this strategy is to get you back on your feet and to own again in as little as two years.

·         Debt Negotiations – Debt resolution through negotiations can be a viable option for someone not wanting to file for bankruptcy. As one of the largest Bankruptcy law firms in California, we have a useable degree of leverage in negotiating with creditors.    

·         Tax Resolution – we negotiate with the IRS and State Board of Equalization on your behalf to reduce the amount owed and to establish a reasonable payment plan.

 If you or someone you know needs to explore these options, come see us today. The Doctor is in!

Short Sales and Deficiency Judgments: Same Game, New Rules for California

James Doan - Tuesday, August 16, 2011

Hopeful to mitigate the ongoing foreclosure crisis and encourage short sales as a foreclosure alternative, California’s governor signed SB 485; an amendment to California Code of Civil Procedure Section 580e that now prohibits junior mortgage holders from pursuing deficiency judgments after they have agreed to a short sale. Prior to SB 458, the seller was protected only from deficiency judgments from the first lien holder.

A deficiency judgment refers to the difference between the sale proceeds and the balance on the note. The new law now prohibits any lien holder who has agreed to a short sale from pursuing the seller for a deficiency judgment.

Under this law, the holder of the note cannot demand additional compensation, aside from the proceeds of the sale, in exchange for written consent to the sale. That said, the law doesn’t prohibit the homeowner from voluntarily making an offer to the lender with the hope that the lender would agree to the short sale. Contribution to these negotiations could come from other lenders, agents, or even relatives of the borrower.

Of great value is the protection against homeowners being unknowingly exposed to deficiency judgment by short selling their homes. Protection under SB 458 applies to a broad range of 1 to 4 residential properties. Included are cash-out refinanced loans, non-owner occupied homes, second homes, and vacation homes.

Now that the new rules are in play, let the games begin.


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