I must admit that the $2 TRILLION stimulus to counter the virus-induced slowdown is noteworthy. 93% of Americans will be receiving $1,200 each in the next 3 weeks, according to treasury Secretary Mnuchin. The Senate has just approved this bill. Pres. Trump is all for it, and it goes to Congress for its adoption today, hopefully. It’s a truly bi-partisan bill of historic proportions. It also provides temporary loans to businesses to tide them over during this period of national calamity. Further, those who lose their jobs will be given 100% plus a little more, for 4 or 6 months. And the Feds has given more liquidity, $500B more to avoid a credit crunch. 

On the financial side, these steps are truly a big help. However, if the virus is not contained in the next couple of months, it just won’t be enough. The cause of our predicament now is the virus, and the fear of it. So, hopefully God gives our President the wisdom and character to do the right thing to contain the invisible enemy. We are all in this together. So let’s all act civilly towards each other and help one another. 

What is the role of credit cards and credit lines in all of this? People will start drawing on credit cards and credit lines to cover any shortfall in income. There’s nothing surprising about this. It’s an emergency. Eventually, credit cards and credit lines will get maxed out, the longer this crisis lasts. I fully expect this to happen. Lots of people are losing their jobs. Unemployment applications hit 3.3M this week. This is 7X the normal. Restaurants employ many people. Social distancing requires that we don’t go eat at restaurants. A lot of people working for restaurants will lose their jobs because there is virtually no restaurant business anymore. Pretty much, LA has ground to a halt. People do not want to expose themselves to the risk of getting the virus, so people are mostly self-isolating and staying home, especially seniors. 

Even in bankruptcy court, hearings are being postponed. In hearings that have not been postponed, the court requires that lawyers appear in court, not in person, but telephonically. Some judges are wearing masks and rubber gloves. You can’t approach the clerk of court to check in anymore, you have to check in at the podium in front of the microphone, which is at least a hundred feet from the Judge and the clerk. They don’t want to get exposed to the virus either. Trying calling the Chapter 13 Trustee offices, they are closed. But debtors are still expected to pay their plan payments via TFS when they are due. So even the court system is adapting to the crisis by delaying hearings and keeping minimum physical contact. But trials still require physical appearance of parties and counsel. 

Credit card use will increase exponentially during this crisis. People will have no choice because incomes will go down despite the $2 TRILLION stimulus. Bills will still have to be paid. Mortgages and rents still have to be paid, even if the stimulus bill does required FHA mortgages to allow a 2 or 3-month moratorium on mortgage payments without interest or penalty. Foreclosures and evictions will also have a couple of months of moratorium. 

So now we are all wait and see. Nobody knows what is going to happen next. It most certainly appears that virus infections will rise exponentially in the next few months, while the President has set his own timeline of getting back America, or at least some parts of it, restarted and back to business. But NY now appears to be ground zero. It’s crazy over there. Half of the virus cases in America are in NY. But NY has their competent mayor Cuomo who knows what to do.

Once you maxed out your credit cards and credit lines, and things have gone back to normal, it’s time to seriously consider filing Chapter 7 to wipe them out, or Chapter 13 to reorganize your financial situation. 

In the meantime, the fact is, we are just living one day at a time. We don’t know what tomorrow will bring; maybe more bad news, or some good news, but certainly more infections and more deaths. Well, kudos to our front line defenders, all our doctors and nurses who are giving all they have to fight the good fight, while exposing themselves to the virus. THANK YOU FOR WHAT YOU DO. They really need effective protective gear. Testing, testing, testing; the faster the better. Several biotech companies are coming up with very fast testing methods. One is coming out this week that gives test results in 45 minutes; happy to hear this. And pharmaceutical companies are trying to come out with a vaccine soonest possible. 

But this too will pass. America will survive and come out stronger for it. In our God, we trust. 

If you need debt relief, please set an appointment. I will analyze your case personally.

 “…You need not fear the plagues that strike in the dark, or the evils that kill in daylight. A thousand may fall dead beside you, ten thousand all around you, but you will not be harmed.” Psalm 91

Lawrence B. Yang is a graduate of Georgetown University with a Master’s Degree in Law and specializes in Bankruptcy, Business, Real Estate and Civil Litigation.  He speaks English, Mandarin and Fujian and has successfully represented thousands of clients in California, including companies overseas.  Please call Angie, Barbara or Jess at (626) 284-1142 for an appointment at 20274 Carrey Road, Walnut, CA 91789 or1000 S. Fremont Ave., Mailstop 58, Building A-10 South Suite 10042, Alhambra, CA 91803.