WASHINGTON, Dec 27 -  The top Democrat in the Senate warned on Thursday that the United States looks to be headed over the "fiscal cliff" of tax hikes and spending cuts that will start next week if squabbling politicians do not reach a deal.
Majority Leader Harry Reid told the Senate in a speech that "it looks like that is where we're headed.
He called on the Republicans who control the House of Representatives to prevent the worst of the fiscal shock by getting behind a Senate bill to extend existing tax cuts for all except those households earning more than $250,000 a year.
RELATED: US consumer confidence falls on 'fiscal cliff' fears

I don't know about you but the above news sends shivers down my spine.  It seems like congress is still doing nothing about the financial crisis.  Some economist say that the pending fiscal cliff could result in another recession with unemployment reaching 11% or more.  If you are facing financial uncertainty or are currently experiencing financial difficulties Richards & Godfrey, P.C. can help you get out of your financial stress.  We are one of northern Utah's most respectable law firms for consumer bankruptcy .  Richards & Godfrey, P.C has excellent attorneys and staff  here to assist you through these troubled times.  You can read more about bankruptcy on our website:  richardsgodfrey.com.

New Year Resolutions

As we are all preparing for the holiday season, we at Richards & Godfrey, P.C. want to wish everyone a merry Christmas and a happy New Year!  It is a great time of the year to reflect upon our families and spend time with them.  It is also a time for many of us to reflect over the past year and set new goals for the upcoming year.

It's funny how every new year we each establish goals for ourselves, our families, and our careers.  It's funny how we all do this.  We all start out with good intentions and within a few weeks we soon fall off our schedule. 

Family and individual finances are on most every one's mind this time of year.  Perhaps more so as we hear daily of the looming "financial cliff".  Many are worried about how the country's economic hardships will effect your personal finances.  For those who are self -employed there is a concern about whether or not your business will survive.  As you contemplate your goals for the upcoming year and financial future I would like to share some thought with each of you.

1.  Make a budget for your personal finances and for your business.  If you fail to tell your money where it needs to go it will go to whomever is asking.

2.  In your budget try the following formula:  After tax income or adjusted gross try to divide your money each month as follows:  A) 10% for long term savings and investment; B) 10%  for short term fun, movies, entertainment etc.;  3) 10% for education including continued education;  4) 10% for charitable giving.  Study after study has shown that those who provide some of their income for charitable giving be it church, community or other charitable organization, tend to be happier and more prosperous, and lastly 5) the other 60 % is for your household expenses.  As a side note, every time I have a $5.00 or $10.00 bill in my pocket I put that in a jar.  If I was planning to go to a restaurant but instead decided to stay home and eat, the money I would have spent also goes into the jar.  You will be amazed how fast your savings adds up.

3.  Does the above seem difficult?  Let me share a story.  A client that I know was on the verge of bankruptcy.  She was in debt way over her head, living with her parents and still barely making it from pay check to pay check.  After I explained the above formula for success she decided she could do it but it would have to be modified.  She decided she could follow the above formula with $1.00 so with her next pay check to took $1.00 and divided into the four different accounts the other 60 cents went back to cover her everyday expenses.  A few weeks later she took $2.00 and did the same thing. The $2.00 then increased to $5.00 and so on.  With each passing week she saw instant success.  Her saving started to grow, in fact it was the first time she even had a savings account.  Her mind started changing and so did her thinking.  She found more ways to save money and at the same time was able to pay on her debt.  Within three years she was out of debt, paid a  down payment on a home and had considerable savings for investing.  The main point I want to make is that she started telling her money where it needed to go instead of everyone else telling it where it was to go.

4.  Einstein's definition of insanity to keep doing the same thing over and over again and expect a different out come.  Are you tired of your financial roller coaster?  Give the above formula a try, even if it is modified to begin with as she did but give it a try.  You will be amazed by the results and will be thankful you did.

May each of you have a wonderful holiday season and a happy and prosperous New Year!!

Debt & Credit Problems

I am writing this to those of you who are experiencing debt and credit issues.  Many do not know if filing a bankruptcy is the right choice for them.  This is understandable, after all it is a big step and creates many questions.  Some of these questions are:  Will I lose everything I own?  What will happen to my credit?  Can I recover from bankruptcy?  Will I be able to buy a house in the future?  These are all valid questions.

I am not going to answer all of these questions because you will think I am trying to sell you on the idea of filing a bankruptcy.  Instead, I would like to refer you to a great non-profit company that I have come across and can highly recommend.  The company name is Fair Credit and you can contact my friend, Preston@faircredit.org.  This company can be your personal unbiased advisor.  The company can advise you about reverse mortgages, credit management, credit repair after filing bankruptcy, even debt reduction plans, and yes, if needed they can tell you whether or not bankruptcy is right for you and what to expect.  I trust these guys and you can too!  faircredit.org 

Don't fail to Plan

Is your Will up to date?  Do you even have one?  Who would take of your children in the event of an untimely death?  If you are like me these are all questions we would rather avoid.  But the issue does not go away simply because we ignore it.  The truth of the matter is if we fail to plan then we fail to make  sure are loved ones are taken care of.  The courts or the State could make decisions concerning the care of your children or the distribution of your estate.  Failure to plan means you are planning to fail.

At our firm we have  helped hundreds of individuals and families plan for the future from simple Wills to complex trusts.  We can help ensure that your family is not left with the uncertainty of who would take care of  your children.  We can make sure that your wishes are followed.  We can remove the uncertainty of  not being prepared.

Contact the firm of Richards & Godfrey  this month and receive a free estate evaluation and review.  If we can help you we will tell you exactly what we recommend and the costs.  If nothing is needed you owe Richards & Godfrey nothing.  Also, if you see Richards & Godfrey in the months of September and October if Richards & Godfrey can provide a service you will receive a 10% discount. Recommend Richards & Godfrey to a friend who contacts us or likes our page on Face Book and receive an additional 10% off.  Please share us  with your friends.richardsgodfrey.com

This country is passing through some very difficult times.  Many people are losing their jobs or have had their hours cut.  Some have even had their salaries or hourly wages reduced.  We are now hearing news that gasoline could reach $5.00 per gallon this summer putting additional financial strains on family budgets.

Many families are facing losing their homes to foreclosure even though they have tried loan modifications through their mortgage company.  They are given a "trial period" with a reduced payment only later to be told they do not qualify for the loan modification and "oh by the way"  you are now in foreclosure because of the reduced mortgage payment.  What is a family to do?  Is there a way out?  How can we save our home?

There are options!  One of the most viable options is to seek protection from the mortgage company by filing a chapter 13 bankruptcy.  A chapter 13 bankruptcy can save your home from foreclosure by taking the payment arrearage and putting the arrears into a chapter 13 plan.  The plan gives the individual any where from 36 months (3) years to 60 months (5) years to pay the back amounts.  There is the requirement to make your on going house payment starting the month following the filing of bankrucpty but many times by restructuring the debt the ability to make the payment becomes easier.

If you are facing financial difficulties be sure to consult with a competent bankruptcy attorney.  He or she will be able to assist you in developing a plan that works making it possible to maintain your home.  richardsgodfrey.com