Hello, everyone. Thank you so much for joining us on; this needs to be said, our friend, I didn’t even get all my words out. This needs to be said my Southern came out just now. Christine. Oh, friend and attorney. I’m gonna, I’m gonna mess it up now. You’re just going to be Christine. I love that. That’s my first name. And you know, we can put protocols aside. I want to. I want everybody to know I’m a human being. You can talk to me. Oh God. Oh God. I sound like I’ve been fumbling for five years. We started out one way, end up another way it works. If, if the audience does not know, we are friends in real life and I love that. I didn’t even do something. It was a gift that I didn’t even know, was going to be here for me.
So like what you all here on the show this is, this is really her. And that’s something that is not always the case. And people know that and, but they don’t know, but we’ve been doing this so long. And if they listen to any of our past shows together, it’s the same energy. Every time I just got real goofy. Just now there we are. There it is. That’s exactly what it is. We are human and we’re here to serve that’s most important. So I guess explain to the audience, let’s pick up from where we were just assessing the economy in bankruptcy and that the falling people filing for bankruptcy is low and there’s been a lot of variables since last year that made that happen. We talked about COVID being a big factor in that. So let’s pick up right there and tell people what does that mean.
Because while the economy is doing bad that doesn’t that mean individuals will be doing bad, like their money’s down, what may need to come in and file bankruptcy. I think, I think there’s a tsunami sitting out on, you know, on the horizon, that when the economy comes back, there will be a lot of people that will need that reset button and they will need to file bankruptcy. I think there’s a lot of different factors that are contributing right now to the decline. You’ve got the safety protocols, right now, you know, businesses have been interrupted and, and, and the people aren’t making the money. I think that’s one of the, you know, one of the reasons law firms are changing the way that they interact with clients. Some clients might feel like there’s no access to justice at all right. Now, if they can’t walk into a courthouse, what can they do?
I think that’s one of the most important things that I would want the general public to know that lawyers are working and lawyers are available. And I think that what people need to do is just pick up the phone and get the advice that they need. Now, the sooner you call a lawyer, even if it’s a bankruptcy attorney or any kind of a lawyer, because even family law cases are not moving. So people can’t get divorced. There, you know, can’t be with the one you love, you’re stuck with a one-year whip. and there’s a lot of stuff that’s not moving, right, because of the COVID-19 and the safety protocols. but the phone is still available. So pick up the phone old school, recall that’s right. You know, and those of us that were born before the internet came out, we know what to do. Oh, no, about a phone.
And so yes, you might have to pick up the phone, the old school way and, and talk to a live human. and I think that’s really what needs to be done the sooner I, and I was just thinking about this a minute ago, the sooner people call, the more options they’ll have with regards to possible solutions, the more time they might have to make those decisions. And these are very important. We’re talking about finances, we’re talking about the heart money is a matter of the heart. And that’s my opinion, Katherine. I know you’ve said you’ve heard that from me before. And so, you know, the people need to get into action. So getting into action can start with some phone calls. You know, it’s a widespread loss of income, so nobody’s making money. And so that will hold them back, right
Because, you know, in order to work with me, you’ve gotta pay me something. And unless you’re going to do it yourself, then you can get into some trouble there. If you’ve got assets to protect, hiring a lawyer is more important than ever before. I think so you’ve got all of this assistance coming into, right People are getting their stimulus money. They’re getting the cares act money. The unemployed are getting that bump in their unemployment. And so I think that’s, what’s been holding people over. If they’ve got open credit lines, maybe they’re using it without paying it back yet. They’re getting forbearances on everything and maybe including credit cards. and so everything’s been put on hold. So there really is no sense of urgency at this point, for people to come into bankruptcy now, unless they’re being threatened with lawsuits or garnishments, then the urgency comes up.
So I think there’s, there’s that as well. And then a lot of people are waiting for the government to bail them out. I think that’s, the worst thing that you should do. You don’t wait for your government to bail you out. It’s not common, there’s no Calvary. They’re not coming to rescue you. They may or may not take action on changing the bankruptcy code. They may not, or they might, it allows student loans to be forgiven. Again, we don’t know what is going to happen within what two, three, four, six months. If you need to do something and you need to take action and there is a sense of urgency, then you need to get on the ball and get the you know, get your strategy going forward so that you can get where you are going financially. I think some of the worst thing, if I was going to make, you know, give anybody advice today, no matter what do the best you can to not tap into your retirement accounts, those are a hundred percent protected from creditors in a bankruptcy case.
So you’re thinking about tapping the 401k to get yourself out of debt. Not, not the best decision. Call a bankruptcy lawyer. First, other than that, if you’re just trying to survive, you might have to. And that breaks my heart to have to say that because some people don’t have it yet, Right? Look, I just want to, I’m in class now I’m in class. I don’t writing notes. I’m like concerned about your finance and I will down concerned about your survival, concerned about your finances. Yeah. You said something in our previous conversation about judgment, creditors being able to file a judgment. So I’m thinking as you’re talking about people not having a sense of urgency and now on the consideration of maybe tapping into their 401k or retirement program, whatever they planning has set up that, okay, well, it may not be a sense of urgency in every other area, but you have credit cards and you know, you haven’t been paying on them and maybe they hadn’t leaned hard on you yet.
Could they out of nowhere, decide to, file, you know, put like if I was the one that was on behind on my credit card and I know I’m behind because they put me into a, a bankruptcy suit, generally they won’t file. It’s called an involuntary bankruptcy case, creditors that especially the unsecured credit card type creditors in the lines of credit or medical bills, things like that, they would not, or they would not force someone into bankruptcy by filing a bankruptcy against them. They would not do that. What they do is they Sue them in, in state court. And so they’ll do, what’s called a collections lawsuit to try to collect on the debt, because they want the money. They know that once a bankruptcy is filed, they’re not going to get their money. If specially, if it’s a liquidation chapter seven or, you know, unless the debtor comes in and, and, and someone has money and they want to make a payment plan, then they can do that in our wage earner payment plan, bankruptcy under chapter 13 of the bankruptcy code.
And so that’s, you know, and that’s another thing that people don’t really know about bankruptcy because of all the stigma that’s out there. Right so it’s bad enough that there’s not a sense of urgency today. And that all of the consumers have been told that bankruptcy is the worst. It’s going to ruin your credit. You’ll never get credit again, whatever it is. That’s not true. None of that is true. You know, you and I am a product of bankruptcy. We’re both got our discharge orders minds about the fall off. I went in 2011. Mine is going to come up my credit report. I had a girlfriend of mine who went through bankruptcy even before myself and she just texted me. Her credit score is up over 800 now. And, and I’m able to get credit lines for my business. And as for myself personally, if that’s what I wanted to do, the credit world is open for business.
After bankruptcy, people need to understand that they will get credit. It’s a distinction between what interest rate will you pay, right What’s important as you’ve got, you know, prime lending, which is your best interest rates or subprime non-standard, which means if your credit score is lower, you’re going to pay higher interest rates on a car loan or a mortgage loan. And you and I both know; Katherine, nobody’s getting discounts on credit cards anymore. My husband’s interest rate is the same. He’s over 800, it’s the same you know, 20, 25%, 30%. It’s ridiculous. The credit part of it right now and I guess everything else is playing into that because there’s no need for them to budge. So what you got good credit. It doesn’t matter right now like that to get a different interest rate, because there’s no need for us to change anything. Everybody who can have credit or has credit that’s available to use, they’re keeping the creditors, keeping them busy. So, and they sell it like a drug, right they send it to you in a shiny envelope and tell you how pretty you are. And then they asked you what’s in your wallet. Yes. Yes. They humor you with one of your favorite movie stars.
Oh gosh, the lady that goes through and she’s popping up and just doing funny stuff at the airport, I like that credit anyway. But yeah, you, you, you know, which you know which credit cards you’re going to get new, you know, which one is going to make you feel good to have in your wallet I’m loving that. We’re big gap. We got another part coming. So we have to wrap up right now. Christine, tell everyone how to get in touch with you outside of this needs to be said. And then we’re going to come back with a, another part you didn’t wrap. I always got more. I know. I love that. I always got more. I am Christine Kingston. I’m your local bankruptcy attorney here in Huntington Beach, California. You can find me on the [email protected] or give us a call at the office for a complimentary consultation at (714) 533-9210. Thanks, Katherine. All right, until next time have a super day and you as well.