Newest articles and comments on The Sacramento Press written by Kaushik Ranchod

Using Failures as Building Blocks to Create Success

2012-10-02T20:41:35Z

Have you thought about your personal definitions for “success” and “failure”? Maybe you see success as a destination, like winning a race. You look forward to crossing the finish line, being declared the winner, having the prize of recognition in the present moment, as well as future acclaim and rewards -- all because you made the right moves!

Under the same model, failure could be seen as getting off on a dead-end side street, having to retrace your steps and suffer lost time. Even if others remain politely silent, you and your self-criticism agree that the path taken has turned out to be a “not-so-smart move.” Mistakes appear as “hard lessons” that bring the pain of guilt and regret.

Most of us would agree: success is a good to be sought after; failure is bad and to be avoided.

But as someone who works with people facing challenging economic circumstances, there’s no way I can use this black and white, all or none thinking in dealing with and solving problems. When someone faces job loss, foreclosure, and bankruptcy, it’s no help to advise a stiff upper lip just to avoid some shameful feelings that can only make matters worse.

Failures can be redefined as lessons learned that actually promote success.

For example, famous political leaders like Winston Churchill have seen the word “success” as the ability to handle multiple failures and traveling the road of failure itself as the expected route to achievement of goals.

Success is stumbling from failure to failure with no loss of enthusiasm. – Winston Churchill

Success is not final, failure is not fatal: it is the courage to continue that counts. – Winston Churchill

In addition, famous athletes remind us that success requires risk taking. They are action takers, who do the actions calculated to win, and who continue to take actions, even in the face of so-called failure.

I have missed more than 9000 shots in my career. I’ve lost almost 300 games. 26 times, I’ve been trusted to take the winning shot and missed. I’ve failed over and over and over again in my life and that is why I succeed. – Michael Jordan

Why does Michael Jordan point to failure as his means to success? His total points made (successes) were more numerous and more memorable than his misses (failures). And Michael Jordan’s established record is for winning more games than he lost, making more baskets than he missed, and for NOT going on a self-condemning guilt trip when he missed the shot that could have won the game, but it didn’t.

He would agree with Success Coach/Author Jennifer White who advises:

"Fail often to succeed sooner."

Nobody likes making mistakes. But making mistakes and learning from them actually moves you closer to the goal. All that is actually an insurmountable obstacle is quitting.

Quitting is different from failing – you can fail your way to success as long as you don’t quit.
1. Mistakes are inevitable – they come as part of our striving for a goal. Most mistakes come with lessons that can shape them into valuable stepping stones towards achieving goals, aka successes.

2. There’s no point in being overwhelmed with guilt and regret, since you can use the same emotional energy to analyze, learn, and feel good about the lessons learned.

3. There is no such thing as failure unless you stop moving towards your goal

Kaushik Ranchod practices bankruptcy and immigration law in Sacramento and San Francisco. You can learn more by visiting www.california-bankruptcyattorney.com and www.ranchodlaw.com.

Ask the Attorney: How do I plan a financial future in the face of uncertainty?

2012-08-23T01:38:51Z

Q: Where does one get information about the economy and economic forecasts that’s clearly stated in everyday language? I just read our local economic report (Emerging Trends in Sacramento’s Economy) and it uses terminology that reads like a foreign language . . . and comes to conclusions that are discouraging to me as a homeowner with family members still dealing with the negative job situation. I would like your take on this.

A: First of all, understanding the terminology was a challenge for me as well! Specifically, the chart about the positive and negative drivers in our economy didn’t give me what I wanted – information or news that I can use -- as I plan my own next steps in personal and business life.

But asking further questions about these unknown factors did help me in my search for answers to my questions about how I can respond wisely to the economic facts we face.

For instance, I asked the question: “how pent-up demand is related to growth” by putting that query in my browser. And it yielded some articles that not only explained the concept of “pent up demand”, but gave me some new perspectives and interpretations about my personal economy. Other people had thought through the dilemma we all find ourselves in and had written out well-stated ideas and plans to improve our situation.

In the process of searching, I came across this quote from Ernest Hemmingway: “Now is no time to think what you do not have. Think of what you can do with what there is.”

This gave me encouragement and a direction: what if the questions I have are more valuable than answers? To experiment, I began to think up more questions that might yield empowering answers. Here are a few:

“What lessons do the Olympics teach about success?”
Brief Answers: athletes teach lessons; triumph over adversity is result of hard work; learn more from failure than success; the power of dedicated teamwork.

“How can there be success in the local economy despite forecasts?”
Yields other headlines: “Economic outlook survey indicates favorable perspective on local economy” “Prospects for favorable economic conditions”

Now perhaps we are both ready to re-read the local economic report.

The summary link at http://www.sacramentobusinessreview.com/ or the entire report at http://www.cba.csus.edu/sacbusinessreview/Sacramento_Business_Review/Archives_files/SBR_Mid_Year_Report_12_full.pdf

As you read the experts report, you can ask yourself three questions:

1. What is the perspective of this report and is it the only one available?

2. What is the interpretation I create from this report, and what others are available?

3. What is the action plan I already have in place and how does this report add valuable information?

Perspective, interpretation, action: by taking action and moving forward you are creating your own financial future despite the economic weather storms.

Kaushik Ranchod practices bankruptcy law and immigration law in Sacramento and San Francisco. To learn more visit our websites http://www.california-bankruptcyattorney.com/ or www.ranchodlaw.com, or email him your financial legal questions at info@california-bankruptcyattorney.com for next week's column.

Learn more about California’s new Homeowner Bill of Rights

2012-08-05T00:51:01Z

Learn more about California’s new Homeowner Bill of Rights

To update the June 1 article about foreclosure options, homeowners will want to find out about important rule changes that will take effect Jan. 1, 2013. The new legislation signed into law on July 11 is referred to as a “Homeowner Bill of Rights,” and makes California the first state in the nation to expand upon provisions of the National Mortgage Settlement.

Rather than try to explain the details and specific benefits, which essentially address areas of conflict and unfairness, this article will provide four major resources for homeowners to get the information that focuses on their particular circumstances.

1. See Governor Brown’s announcement: http://gov.ca.gov/news.php?id=17627

When Governor Jerry Brown signed the California Homeowner Bill of Rights, he said he was responding to the "abusive tactics" of loan servicers, in order to protect struggling homeowners who are trying, in good faith, to renegotiate their mortgages.

"Californians should not have to suffer the abusive tactics of those who would push foreclosure behind the back of an unsuspecting homeowner," said Governor Brown. "These new rules make the foreclosure process more transparent so that loan servicers cannot promise one thing while doing the exact opposite."

2. See the Office of Attorney General’s website, which provides a slideshow of how six families would benefit from new rules: http://oag.ca.gov/homeowner-stories

"The California Homeowner Bill of Rights will give struggling homeowners a fighting shot to keep their home," said Attorney General Kamala D. Harris. "This legislation will make the mortgage and foreclosure process more fair and transparent, which will benefit homeowners, their community and the housing market as a whole."

3. Link to guest host Maria Hinojosa’s talk with Kamala Harris, California's attorney general, on “Tell Me More,” from NPR News, for a listen to or transcript of the conversation: http://www.npr.org/2012/07/12/156668324/homeowner-bill-of-rights-for-flawed-system

Harris says, “First of all, these are simple, practical solutions to a very flawed system and so it's an amazing thing … to get these bills passed (But) you've got to create rules and you have to have consequence and accountability if people break those rules, so we can encourage them to pay attention to them. And so we have a strong enforcement component in the California Homeowner Bill of Rights, which will allow the homeowner to sue if the banks and the servicing institutions do not comply with the rules as have been outlined.”

For the full text of the bills, visit http://leginfo.ca.gov/bilinfo.html

Here is a brief summary of four of the major components designed to bring fairness and transparency to the foreclosure process:

The new law will generally prohibit lenders from engaging in dual tracking, require a single point of contact for borrowers seeking foreclosure prevention alternatives, provide borrowers with certain safeguards during the foreclosure process, and provide borrowers with the right to sue lenders for material violations of this law.

1. Prohibits "dual track" foreclosures: A servicer will no longer be able to continue with foreclosure while also reviewing a homeowner's application for a loan modification;

2. Creates a single point of contact for homeowners while negotiating a loan modification, which prevents inefficiency in the process;

3. Expands upon notice requirements to a borrower before taking action on a loan modification application or pursuing foreclosure; and

4. Allows for injunctions against foreclosure until violations are corrected; also permits civil penalties (including money damages) against servicers that file multiple inaccurate mortgage documents or otherwise violate the law.

Because the realities of home foreclosures have been so negative for all of us, considering its negative impact on our families, communities and economy, we are all hoping these changes will make a huge difference in the way we can work together to solve problems that will not go away without persistent and intelligent action.

Ask the Attorney - Question: Could you give Sacramento homeowners some tips on how to lower their property taxes?

2012-07-27T16:52:11Z

By Kaushik Ranchod

Question: Could you give Sacramento homeowners some tips on how to lower their property taxes?

Good question – actually this was a recent question I was asking myself when I got a tax bill that looked like it needed some verification as to its accuracy. So I went looking for some resources for a deeper understanding of my property tax and what was involved in the dispute process.

After calling the assessor’s office, I found out about requesting an assessment pursuant to Proposition 8. This would allow the assessor to take into consideration factors that may have caused a decline in the current market value. Indeed, after requesting a reassessment, there came by mail a “Notice of Taxable Value of Real Property,” which readjusted the assessed amount and allows for further appeal if I believe my particular circumstances warrant it.

So now that I have a little practical experience, I do have advice for the newcomer to the property tax dispute process.

First, I believe the best first step is to review the Sacramento County Assessor’s website at http://www.assessor.saccounty.net/default.htm, which is ready to address questions and problems about almost any scenario. The home page clearly sets forth “HOT TOPICS,” such as:

My Property Value has Declined. How do I Lower My Property Taxes?

Decline In Value (Prop 8) Request for Assessor Review Form

Commercial Property Income Expense Addenda

Prop 8 Decline in Value Frequently Asked Questions (FAQ's)

Property-specific information is also outlined in the left column, providing information in map format, public records, ownership information and tax bills. For those who have specific assessment questions (what are exemptions and exclusions, form, fees and dates, as well as how to report the death of a property owner), there are handy links on this page of the website.

For an overview about California Property Tax as of August 2009, there’s a link on this page to a 42-page booklet at http://www.boe.ca.gov/proptaxes/pdf/pub29.pdf.

There are also links to other California offices related to property taxes at http://www.assessor.saccounty.net/LinkstoOtherOffices/default.htm, if you want to go deeper into the subject on your own.

So after having done the website review, here are my suggestions:

1) Contact the assessor’s office to request a review of the market value of your home based on Proposition 8 (do this after a complete review of the assessor’s website to become familiar with posted information and definition of terms).

2) Be sure to be aware of specific deadlines for filing either a dispute or an appeal. For most in Sacramento County, it will be July 2 through the end of the business day on Nov. For responding to other notices, the deadline may be set in the letter as being 60 days from the date of notice.

3) You may find some helpful videos on YouTube, but be sure you understand that blog posts and online video materials are not able to give legal advice. But if you want to check out one, here’s an example: “How to dispute property taxes in Sacramento area,” http://www.youtube.com/watch?v=gSM1pTgTNIE, which will cover topics such as:

· How do you know if you should appeal or not?

· Which application should you fill out?

· What do you to give the appeals board besides the application?

· Do you need a full appraisal when disputing your property taxes?

· What happens after you turn in your appeal?

To sum up: there’s no need to quietly accept the property tax assessor’s statement of what your property is worth and what you pay in property taxes. If you feel you are paying more than you should, you have options.

Kaushik Ranchod practices bankruptcy and immigration law in Sacramento and San Francisco. To learn more click here: www.california-bankruptcyattorney.com.

Vacation Savings Tips – How to plan a fun vacation without breaking the bank

2012-07-11T00:17:17Z

Surveys indicate that, as a general continuation of cost-cutting in everyday life expenses, vacationers will be spending less in terms of travel and lodging. So how do you get in on the best deals in keeping with this frugal trend? Here are a few suggestions for anyone looking for ways to get maximum value for your vacation dollars by using right “keywords” in internet searches.

Three examples of queries with keywords that give suggestions for vacation savings and extra fun

1) Be specific about the name of the location where you’ll be spending your vacation. For instance, for anyone coming to the Sacramento, Central Valley area, you can search online by using a search term like:

a. “tips for budget vacation in Sacramento California” [http://www.visitcalifornia.com/Explore/Central-Valley/] or

b. “frugal vacation in Sacramento, California” points to 10 ways to save money on your next vacation” http://www.stretcher.com/stories/03/03jun09c.cfm

2) Be general about the type of activities and use search term such as “family vacation package” which will give ideas for family fun applicable to every interest and age.

a. Here’s a site for local activities that includes ways for teaching about other cultures through local attractions and food: http://local.stretcher.com/Family_Vacation_Packages_West_Sacramento_CA-p1596554-West_Sacramento_CA.html

b. Don’t be shy about using a keyword like “cheap” in your query, it can lead to valuable information and ways to compare the high and medium price for essentially same experience. Here’s an example of a hit entitled “honeymoon like a celeb on the cheap” http://www.foxbusiness.com/personal-finance/2012/06/28/honeymoon-like-celeb-on-cheap/?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+foxbusiness%2Flifestyle_money+%28Internal+-+Lifestyle+%26+Money+-+Text%29

3) Be creative with vacation ideas by considering why you are taking time off from work in the first place and how to achieve your goal of relaxation custom-made for your needs. A search such as “vacation to balance work and play” yields plenty of ideas at http://www.wikihow.com/Balance-Work-and-Play

Couple of other points which may be of interest:

A. Point your vacation goals towards the quality of experiences, not quantity
If your vacation budget is too flexible, it is easy to increase the amounts of things to do and miss opportunities to relax and be more fully present to the joys of being with family, friends, and beauty, excitement and education of new places. Sometimes more can be less.

B. Know your budget and then plan to overspend intentionally on something special.
Ever notice how being completely practical is boring? Why not plan for a little impracticality at the beginning and go do something that may stretch your budget (but does not break the bank) but creates fun and memories that will always be considered truly worth it.

C. Learn frugal tips in advance and you can nix overspending
Pre-planning does cut down on expenses you could have avoided. Good packing tips can save you money and frustration when you don’t have to purchase items when away from your usual shopping deals. Unexpected circumstances can be expected if you study the road trips learned by previous travelers. Here’s website with 15 of such examples: http://beatofhawaii.com/frugal-hawaii-vacation-planner-15-ways-to-save/

What is the most valuable thing to YOU about taking time off from work? Is it more time for play, for time with family and friends, new experiences, opportunity for entertainment, education, enterprise? Or do you just want to zone out and contemplate. If you are looking for options online, you’ll find plenty of inspiration and advice. And sometimes you just want to know that there are others like you who have a hard time letting go of the work brain and getting on with doing things for the pure fun of it!:
http://www.pbs.org/mediashift/2006/08/balancing-work-and-play-on-summer-vacation216.html

In summary, here are the two best things about vacations:

1) Vacations are times of creating value in terms of refreshment, relationships, and renewal: and

2) The time and money we spend on them can give back a greater return than their cost.

Kaushik Ranchod practices bankruptcy and immigration law in San Francisco and Sacramento.

Ask the Attorney: Can debt collectors contact me?

2012-06-30T00:35:17Z

Before I delve into the question "Can debt collectors contact me at work?" I want to start off our discussion by asking the following question:

Do you have a plan of action to take when confronted with a debt challenge?

What is a debt challenge? It’s the temporary inability for whatever reason to make a debt payment on time, in the full amount due, or according to an existing debt repayment plan. Isn’t that what happens when you have to miss a payment or cannot pay the full amount owed on the due date?

We all have changes in our financial circumstances, which means ups and downs.
When a financial situation changes so that you are unable to pay all your creditors, this temporary situation can be addressed with a plan of action. The details may require steps taken over a span of time, but the essential three steps you can learn and take today.

Step 1: Recognize in advance that you will be contacted by creditors if you don’t contact them FIRST.

Step 2: Plan what you will say and do as a practical solution given the change in your finances, NEXT.

Step 3: Know your rights and resources under the law so you remain in control of situation, ALWAYS.

Step 1: Choose whether you will call first or reply to a call from a creditor.

As soon as you realize that your financial situation has changed so that you have less money available to make payments, you can decide what to do as far as communicating with creditors. If you choose to wait because there is a possibility that a financial situation will shift in your favor, just be aware that the creditor (or collection agency) will be persistent in trying to reach you because they are not aware of anything different in your ability to pay on a debt as previously agreed.

Step 2: Be ready to make an agreement that you can afford to pay over time to pay off your debt in full. A creditor is much more likely to settle on a lower amount than the total value of the debt, if the debt was sold to a collection agency.

Basically, calling a creditor is your attempt to renegotiate the terms of your agreement, taking into account what you can now actually afford. Whether you are the one making the first call or responding to a creditor’s call, if you are communicating about reducing your monthly payment, be sure you do two things:

1) Put your request in writing and keep a copy for your records. Explaining your situation in writing has a more persuasive effect and serves as a record of your good faith attempt to make payments, and

2) Know in advance what you can realistically afford to pay; don’t just make a one-time promise to get by, delay dealing with them for another month, and get rid of them. You lose credibility when you don’t keep your payments as renegotiated; the collector can cancel the agreement and demand payment of full amount.
Know the call restrictions that apply to California collections.
If your debt has already has gone to collection and you are just dealing with collection agency calls, you still have these controls, limitations and protections provided by federal and state laws (see “Your Rights Under California's Fair Debt Collection Practices Act” at the California Attorney General’s website at http://oag.ca.gov/consumers/general/collection_agencies10#responding):

Collection calls may occur only between 8 a.m. and 9 p.m. You or your employer can prohibit collection calls coming to you at work by informing the collection agency in writing that you only want to receive their communications via mail;
If these hours are inconvenient for you, you may ask the agency to contact you at other times, or only at certain phone numbers;
Repeated calls over a short period, which may be annoying or harassing, are prohibited;
If you prefer that the agency contact you only by mail, you may ask them to do that; it is best to make that request by certified mail and keep a copy for your records;
Your privacy is protected. Collectors cannot use postcards when contacting others, and envelopes must not contain information showing that they have been sent by a collection agency;
When contacting the person who owes the debt, the collector must give either his or her name, or the name of the collection agency, but when contacting someone other than the person who owes the debt, the collector must give his or her name but not the name of the collection agency, unless asked to provide that information;
A collector cannot represent themselves as anyone except a collector, and must tell the person who owes the debt that he or she is trying to collect the debt;
A collection agency cannot use any words or symbols in its notices to make the person who owes the debt think the notices are legal documents when they are not, or that they come from anyone other than a collection agency.

Times change along with resources for debt repayment. Know how to be on the best course to go through the current lack of resources, and maintain your confidence so you won’t feel helplessly stuck when you also could be moving forward with the changes.

Kaushik Ranchod practices bankruptcy and immigration law in Sacramento and San Francisco. Email him your financial legal questions for next week's column at info@california-bankruptcyattorney.com.

Kaushik Ranchod on "Financial News: Finances and worry"

2012-06-23T00:20:32Z

Attorney Ranchod answers all legal questions, general questions about Kaushik's pictures, education and background are occasionally answered by the office manager. Very Sorry.

Kaushik Ranchod on "Financial News: Finances and worry"

2012-06-22T08:07:27Z

Great advice Mark and thank you for the feedback. We will rotate in a picture of Mr. Ranchod and start including his credentials as well. We are relatively new at this and welcome input.

Kaushik Ranchod on "Financial News: Finances and worry"

2012-06-21T20:20:01Z

Mr. Ranchod has spoken at national legal conferences and the radio (KPFA, F.M.). He graduated from the University of Southern California as valedictorian of his major (first in his class) and was added to the Trojan Wall of Fame. He obtained his Juris Doctor from the University of California, Hastings, in San Francisco and was admitted to practice before the California Supreme Court in 1998. He is ready to help you with all of your legal needs.

Financial News: Finances and worry

2012-06-21T19:19:40Z

Question: The state of the global economy, and the Sacramento job market has me worried about my financial security. Do you have any suggestions about how to stop worrying about money?

Answer: Fortunately, you can solve your financial security issues by observing your emotions and worry.

I know, I know, this answer sounds flippant! I’m certainly not belittling the financial struggles and hardships people now face for all of the above reasons, but before you stop reading this article, please consider this about the activity of worrying: Worrying means you are not living in a fantasy of projected wealth promises that things will be fine “just around the corner.”

Worry, in controlled doses, is a factual sign that you are facing whatever music is playing loud and clear in your life, and you are sincerely concerned about what to do next.

When someone is worried or stressed about a situation, it means they are on high alert, physically, emotionally and intellectually. The body is ready for fight or flight, the emotions are highly charged to actually do something with all that energy and the brain is supercharged to think fast and show amazing practical and smart survival reasoning.

Transform your feelings of worry (awareness and motivation) into problem solving (planning) and taking action (behavior).

The trick to dealing with worry and stress is to not allow it to go on too long before actually doing something about the cause of it. Worry becomes your ally, and stress becomes your backup generator as you make the next best move to return to the normal, neutral gear of everyday feelings and activity. But if you let worry take control and put you out of balance, you will have consumed your energy and will remain simply stuck in the realm of worry.

Another principle that goes hand in hand with worries about money, about stressing out about being “short of cash” – or whatever lack you feel - is to realize that having money, in itself, doesn’t guarantee financial security. No doubt, adding cash to the short supply can temporarily relieve money worries, as in obtaining a “payday” loan or funding expenses by adding them to credit card debt, but in a matter of time, this economic plan will come full circle to eventually swing to the other end of financial security -- financial insolvency.

What then is real financial security?

Here’s the short answer without doubt or hesitation: living below your means. This definition applies to the millionaire or to the minimum wage earner. It is evidenced by the bankruptcies of lottery winners, celebrities and investors who didn’t hedge their investments with actual savings to cover losses.

Anyone can live according to their means, but when these temporary financial means change, they can plunge into financial chaos. With a sudden loss of job, health, or business return on investment, the whole picture of one’s financial security changes.

Unless . . . unless prior money worry has challenged you to create a plan B, C, D for your finances.

Back to the start of creating financial security: having a plan for changes and knowing in advance how to deal with money worries and stress.

The key to handling money worries is balance: being aware of money worries and having a plan for what to do about it.

Nobody wants to worry, but we have to face the fact that worry is a built-in factor of life. When it comes to worry about our present and future finances, we all tend to go off into fantasy land by believing that if we just had “enough” money, all our financial worries would be over.

If that was true it would make life so much simpler. All we would have to do is focus on acquiring more money consistently and with energetic determination, and all our money problems would eventually be over. But, true financial security doesn’t happen through accumulation of wealth any more than a completely stress-free life is a practical solution to perfecting health and happiness.

Welcome stress but kick out the intruder, fear.

There’s a difference between worry and fear, just as there’s a way to use stress to overcome problems that are stressing you out. The solution to overcoming worry and stress lies in balancing the feeling of worry with the actions you take to do something about it.

It is not possible to create a stress-free life by achieving financial security, but you can create a lifestyle where money is not a constant nagging concern, because you have balanced these two things: financial worry and what you do about it.

Balance is the key to financial health and security. How you create balance depends on how you choose to deal with the financial problems that worry you, cause stress and need solutions in order to move out of a state of being stuck.

Contact us at info@california-bankruptcyattorney.com with your legal questions concerning bankruptcy or immigration for next week’s column.

Kaushik Ranchod practices bankruptcy law and immigration law in Sacramento and San Francisco. To learn more visit our websites at wwwhttp://www.california-bankruptcyattorney.com or www.ranchodlaw.com.

Financial News: BALANCE, the Key to Reaching and Maintaining Your Goal of Financial Security

2012-06-15T22:53:02Z

WEEK 1 OF 3: HOW PRINCIPLES OF BALANCE in Nature Can Be Applied to Personal Finances –

Do you have a favorite place or activity where you get your best bright ideas? For some people it is the shower – for me it is watering the garden. It’s a simple act of giving the plants what they need – water. If I don’t water them (and if it doesn’t rain, which, here, is almost a sure thing), they will not survive.

Since watering isn’t a complex task, it’s easy to use this time to think and just allow my mind wander through the free-for-all place of ideas where it is easy, almost predictable to come upon ideas that have value in practical life scenarios.

For instance, a recent “watering contemplation” began with the awareness of the balance which exists between my contribution to the wellbeing of another and my personal happiness. I noticed how, by just the simple act of watering plants, I was participating in the “the give and take of life.”

That may sound way too dramatic, but the fact was: Here I am, giving water and receiving back a form of happiness, that is genuinely giving back to me a form of satisfaction. Yes, I had stumbled, quite accidentally too, upon “happiness” in the sense of accomplishment that comes with contributing to the ongoing life of my lawn and plants.

And then, I casually wondered if there was a way to apply this natural process of give and take to financial concerns. It seems like the “bottom line” (money) is the bottom line (the top priority) these days where the economy has unpredictable mood swings and there’s insecurity which leads to unhealthy financial pictures – not enough flow. There’s not enough “green” – money. And the jobs and other means of making income (water) – well, there’s a water shortage!

Not only is there a job and money shortage, there’s an overabundance of frustration, anger, and fear which certainly cannot be healthy when it comes to finding solutions to any problem, or finding strength just to cope – because sometimes that’s all that’s available to do – wait and see – find and collect your options before making the next move.

But in this space of waiting and collecting, I’d like to contribute this idea of balance to help with the task.

To discuss balance and apply it to financial health is going to take a series of articles – one to go into definitions and specifics about financial balance, and other to suggest some strategies for achieving and maintaining this in a world which is constantly changing.

For now, I’d just like to put some questions on the table for further ponderings and feedback.

1) When it comes to handling money in your household, do you try to achieve a balance between outgo and inflow (spending and income)?

2) Have you determined the amounts of actual dollars in income you need to keep this formula balance (again, income and outgo)?

3) Do you have a plan for handling an unexpected imbalance between income and expenses – do you know what needs “watering” first and what could wait?

4) How important is it for you to not “waste water”? Do you distinguish between needs and wants? For instance, are you watering a water-storing cactus as often as a new seedling with shallow roots?

5) Have you identified priorities which will give you the most happiness for the time and money spent on them?

Creating balance in our finances is about “tending” – it cannot be trusted to a “set-it-and-go” system. We need to be aware of what is changing and what will remain the same. A spending plan, a budget is certainly going to be different according to the seasons, the comings and goings of people in our lives, and our plans for the future which will require savings.

I look forward to hearing your comments and will incorporate them in future writings on this topic of balance.

Balance: the essential ingredient for health, security, peace, happiness – all these benefits come from balance, knowing that life is not an all-or-nothing proposition.

Kaushik Ranchod practices bankruptcy law and immigration law in Sacramento and San Francisco. To learn more visit our website at www.california-bankruptcyattorney.com and www.ranchodlaw.com.

Financial News: Five ways to deal effectively with any difficult task involved with obtaining debt relief

2012-06-09T02:18:55Z

Another way of asking this question is “how does one get things done when there are plenty of reasons to avoid getting them done?”

I don’t think there’s one person who is obtaining debt relief who finds the necessary document and data collection and its organization a particularly delightful task. Applying for a short sale, debt settlement and Chapter 7 or Chapter 13 bankruptcy requires important financial documentation that is required for debt relief. That’s why many people put off doing the necessary things, sometimes waiting for the last minute or even miss a deadline because they find the project unpleasant, even stressful.

But the actions that take you from debt overwhelm to financial freedom are not as dreadful as you might imagine. Here are a few tips in dealing with avoidance and procrastination that have already helped lots of people who face the same hurdle: to keep going when it’s tempting to move to a place called “Someday Aisle.”

Don’t confuse deadlines with something dreadful

Ever notice how productive you become when you have something to look forward to? How about preparing for a vacation – notice how much you get done the day before! You don’t want to leave and have undone work to take along or face later upon return. You discover how many things get done in a shorter amount of time when motivated by a sure reward.
Why not use the same principle when you’re collecting documents in preparation for debt relief, a stress relief that promises to deliver its reward just a few months away.

Here are some tips to help you tackle your bankruptcy project with rewards in mind.

1. Make a list. Having a list of everything you need to find or get done is a big part of “just doing it.” With a concrete and complete list, you can just stick to it – in fact, you can make your whole job to stay focused and be sure to reward yourself when you “don't go astray.”

2. Get help. No need to be a Lone Ranger. You’d be surprised to find family members and friends willing to assist, if not with the document collection and organization project, at least taking over other tasks on your “to-do” list which will give you more time. It also helps to divide overall project into tasks (“chunks”) so it doesn’t seem overwhelming. This project is probably going to take more than one session of work – be realistic and take it in steps – making “your job” to be just staying in action.

3. More about organizing by chunks and priorities. Just like you do when preparing to go out of town, itemize tasks by importance. Do the things that must get done first , tasks that absolutely can't be carried over to the next day without a penalty.

4. Next, get difficult things out of the way. After completing the “must do” tasks, then focus on the items you anticipate as being the most difficult. Again, avoid overload by making the task chunk no more than 30 – 60 minutes at one time. Once these hard tasks are out of the way, now the rest of your project will seem relatively easy. When you have the “easy stuff” to look forward to, it is much less likely you’ll put off getting it done.

5. Make the commitment to get it done, step by step. Getting serious about tackling your daily to-do list as if you were going out of town soon. If you were leaving for a week, what would you have to do right away? You could ask yourself: What project or person would be left hanging? Ideally, you are able to make a commitment to handle one task at a time and not stop until you've finished it. Do your best – and don’t let perfectionism stop you from starting.

Kaushik Ranchod practices Bankruptcy Law and Immigration Law in Sacramento and San Francisco. Visit our website at www.california-bankruptcyattorney.com for more information.

Ask the Attorney: What are your Options to Foreclosure?

2012-06-02T01:06:48Z

List of options expands as people facing foreclosure find solutions

Many thanks for submitting your questions about financial matters. Looks like foreclosure concerns are top of the list, so I’m going to run down a list of options, defining them in a general way so it covers a wide area of mortgage and foreclosure-related territory.

I realize that if you are falling behind on your mortgage payments, you are under greater pressure to take action than if you had time to carefully consider many details. But no need to let stress dictate steps that are unnecessary or even harmful, when a little more time gathering and considering your options may be the key to a better outcome.

The good news in June 2012 is, as more and more people face the reality of falling home prices and reduced income (the basis of this recession), there is correspondingly more experience-tested solutions to choose from by both borrowers and lenders. This means that the course of action you choose has a better chance of working out as expected. The problems of delays and disappointing results has declined with the rise of recognition of what is only a temporary “fix,” or an unworkable scheme, or even a scam.

First step: Make the decision about what home means to you

“Nobody wants to lose his or her home.” Hey, that has the ring of common sense. Yet it may not be true for someone who bought the home as an investment during the housing boom or for a family that has to downsize anyway due to changes in ages and stages of life.

How you see your home – just a place to hang your hat or a one-of-a-kind safe harbor – will determine your next steps. Ask yourself, ask your family:
Is this home “my castle” that must be defended through tough economic times; or
Is this just a house, an unaffordable asset that must be liquidated for sake of financial health?

Next step: When your decision is to do everything to avoid foreclosure

1. Communicate with lender

Contacting your lender when you cannot make a timely mortgage payment is important because it sets the stage for the future where you’ll definitely need an established two-way line of communication that’s up to date. When you avoid sharing your situation (and documenting it, too) you may miss out on opportunities that open up because of changes in the rules, the laws, even the banker’s staff.

Keep the lines of communication open, establish relationship, maintain flexibility in your next choices. You’ll also want to keep copies of conversation notes and correspondence shared. Be professional and you’ll increase your credibility.

2. Check out government programs for loan modifications and forbearance

So as not to overwhelm you with information, I’ll recommend two government agencies that can help you simplify your choices as you do everything you can to keep your house. Check out Consumer Financial Protection Bureau under Mortgage Help and the HUD’s website about Avoiding Foreclosure.

The CFPB will get you connected to a HUD-approved, no-cost housing counselor who can assist you in working with your lender, as well as help organize your finances and understand your mortgage options. The HUD website outlines options as well as information about organizations that can help contact lenders and servicers on your behalf.

Don’t feel that you have to go this alone – you need assistance and professional, experienced advice. These are a couple of good places to start.

3. Consider filing Chapter 13 bankruptcy

Chapter 13 bankruptcy is a powerful tool that may allow you to keep your home even if you are behind on your mortgage payments. This financial solution allows you to pay your arrears through plan payments during the life of the bankruptcy (three to five years).

Additionally, if your mortgage is greater than the equity in your home, you can “strip” off the second mortgage. To learn more about Chapter 13 Bankruptcy click here: http://www.california-bankruptcyattorney.com/chapter-13-bankruptcy.

Alternative next step: When your decision is to divest of your asset

1. Short sale / deed-in-lieu

Here’s where your prior decision to keep communication open with your lender can really pay off. You’ll need to know the current value of your home to determine whether your home is worth less than what you owe on it. If you’ve been speaking to your lender, this will not be a new topic of conversation.

Your goal at this point is to avoid having a foreclosure on your credit report. The dilemma is that when you are upside-down on your mortgage and want to sell your home, you need your lender’s permission to proceed with a sale. If you speak to them at the first sign that you are having trouble paying your mortgage, they may be able to offer solutions available to their customers only.

If you are unable to come up with a workable plan with your mortgage lender, then there are two main options, a short sale or a deed-in-lieu of foreclosure (DIL). Both of these options are preferable to a foreclosure because they do less damage to your credit rating. But, also in both cases, you may have to deal with a “deficiency balance,” as a debt still owed and/or possible tax implications. You’re going to need more guidance if you choose either of these paths.

2. Knowledge about foreclosure timeline – How much long can I stay in home?

In the case where foreclosure is your last option and you decide to leave your home behind in order to move forward unburdened by impossible payments that deprive you of other basic necessities, you’ll have at least two other questions: 1) What is the time line for remaining in your home before you have to move, and (for the sake of not being surprised) 2) what are tax consequences?

Both of these answers depend again on individual lenders, location of your home, and your financial situation – they need answered geared to your circumstances.

3. Chapter 7 bankruptcy

If you are unable to make your mortgage payments because you are drowning in unsecured debt such as credit card and medical bills, consider filing for Chapter 7 bankruptcy. By filing for Chapter 7 bankruptcy, you can discharge you unsecured debt (“wipe out” the debt) and free up money to pay your mortgage.

However, if you have significant equity in your home, Chapter 7 may not be a good option. Alternatively, if your mortgage is greater than the equity in your home, you could file for Chapter 7 bankruptcy and keep your home as long as you are current on your mortgage payments.

You should also consider filing for Chapter 7 bankruptcy if you want to divest yourself of your home and not be liable for the debt. If you have a second mortgage on your home, a foreclosure does not relieve you of your obligation to pay back your second mortgage. However, if you file for Chapter 7 bankruptcy, your second mortgage debt can be discharged. To learn more about Chapter 7 Bankruptcy click here: http://www.california-bankruptcyattorney.com/chapter-7-bankruptcy.

Turning the corner financially comes with life lessons that are in themselves valuable resources

Besides reviewing these general descriptions of your options, I recommend following up with more plain language articles about the specific avenue that appears open to you considering your individual circumstances. The more you learn about various choices, the more you’ll make an informed choice knowing how these decisions will affect you.

The path to successfully face and overcome a foreclosure has been already traveled by many homeowners before, especially in the five years since the market began to unravel. There is a solution for you too.

Please email us at info@california-bankruptcyattorney.com for your questions for our next Question and Answer series.

Kaushik Ranchod is a local bankruptcy and immigration law attorney who has been practicing since 1998. His offices are located in Sacramento and the San Francisco Bay Area. For more information visit our website at www.california-bankruptcyattorney.com

Ask the Attorney: Watch out for information overload – even information anxiety

2012-05-21T19:36:22Z

Seeking information can be dangerous – as anyone who has ever opened an email with a virus can attest. Valuable information is best when it’s local and timely, when it addresses real-life concerns and comes from a trusted source. And it doesn’t hurt if it comes packaged so it is easily consumed – meaning in a format that is handy and “hits the spot.” That’s what I was thinking when I decided to start this weekly question-and-answer “Financial News” – as a reader who wants to share timely information about financial issues I find newsworthy and trustworthy.

And since this is the first article of the series, I will ask the first question, which we imagine to be: What do readers really want to know about money and finances?

Maybe it needs to be something more personal like, “How can I get out of debt given so many changing and uncontrollable factors in the economy?” Yes, that’s more like it, even if it is a huge subject which requires at least a book chapter to answer.

How about if we narrow the focus instead to information about the Sacramento area economy– would readers like that? Not necessarily – readers are not always scouting for information that informs, even if it contains scientific data, especially if it paints pictures of contradiction, ambivalence, or gloom. Hey, cliche or not, no news is still good news!

How about information that is upbeat, entertaining, inspirational and motivational. . . whoa! This is a possibility, and I will be sharing some interesting information about current financial topics which make particular sense to you because it’s filtered through my education and experience in the bankruptcy law field. We can talk about how to stop wage garnishment, foreclosure, how to rebuild your credit and much more.

So send me your specific financial questions. Let’s focus on a topic together, specifically financial issues that you are facing if you are facing financial stress. You can email your questions to feedback@sacramentopress.com.

Kaushik Ranchod is a local bankruptcy and immigration law attorney. His offices are located in the Sacramento and San Francisco Bay Area. For more information please visit www.california-bankruptcyattorney.com.