REPO DEFICIENCY CAUSES SENIOR TO SEEK CHP 7 RELIEF; DEBTOR OPTS FOR CHP 7 TO SET AFFAIRS IN ORDER DUE HEALTH REASONS

Client no. 1 is 75. Her husband passed 4 years ago and left her with $30K of credit card debt. She has been making minimum payments on their credit cards for the last 15 years as far as she can recall at the rate of $800 a month. So in one year she pays about $10K of minimum payments to keep the $30K current. In 10 years she paid $100K to keep them current. In the last 15 years, she has paid $150K to keep her credit card masters happy. Mastercard and Visa are very happy with her. They lent her $30K, fifteen years ago. After 15 years she paid them $150K, and she still owes them the same $30K! Well, of course, that a great business profit for mastercard and visa, right? Borrow $30K and pay back $150K in 15 years but still owe the same $30K!

Just imagine client was only 60 when she got her $30K of credit cards with her husband. Now, her husband has gone on ahead of her. Together, they have paid $150K on the $30K starting at her age of 60. At 75, she has paid $150K and still owes the very same $30K. Never mind that she could put the $150K to much better use now at 75, if she did not owe the $30K in the first place. Now that she is retired and receiving social security of $1,300, forking over $800 a month to make these minimum payments to mastercard and visa means that 61% of her retirement income goes to minimum payments. Now that doesn’t sound good, does it? She rents a room for $500 a month, so just the credit card payments and the rent use up all of the social security of $1,300!

So get this, at 75 she has to get part time work at Walmart, to have money for food and other necessities. Without the $800 paid to credit cards, she literally would not have to work anymore. $800 a month after rent is paid is more than enough for food and other necessities for a single person. 

Client has been living this way, until two months ago, when her 2015 Lexus RX330, which she leased for $450@ month was repossessed. She thought she wouldn’t owe Toyota anything since they took the car back. But last week, Toyota sent her notice that, she owed them a lease deficiency of $18K. This of course is the proverbial last straw that broke the camel’s back. Mastercard and Visa already takes more than half her social security, forcing her to continue working at Walmart at the age of 75, but now owing another $18K to Toyota for a car that she has already returned to them that she can’t drive anymore, these circumstances put her financial situation into a more accurate perspective. At the age of 75, she needs a complete make over of her finances. 

Chapter 7 will wipe out the $30K of credit card debt, and the $18K owed to Toyota. She will wipe out $48K of debt that she totally doesn’t need to be burdened with at 75. We are talking about quality of life here. Nobody wants to live like this. Her creditors own her life! This is no way for anyone to live, no matter what age. I am sure that her beloved husband would agree that that they should have filed for Chapter 7 at least ten years ago, so that now, client at least would have saved $100K in retirement funds instead of being saddled with debt.

Client no. 2 is still young. She is barely 50. Her husband suffered a stroke 2 years ago. His hospital bill is $200K. Well, that obviously is one problem. And he owes about $40K of credit cards. That’s another burden you don’t want to have even if you are completely healthy and able to work. She needs $1200 a month to keep her husband’s $40K of credit cards happy and current. The problem is that husband cannot work anymore because of the stroke. Husband is still ok in that he is still able to talk and not paralyzed, but I believe he is depressed because of his condition. He’s a lot younger than I am, but I feel that he’s lost the will to continue living. I feel bad for him and her. 

I can help him discharge the $200K of medical bills and $40K of credit cards. That’s a no brainer. But I wish I could do more for him healthwise. But that’s now between our Almighty Father in heaven and him. I can suggest that he reads Psalm 91 written by Moses: “Whoever goes to the Lord for safety, whoever remains under the protection of the Almighty, can say to Him, ‘You are my defender and protector. You are my God; in you I trust.’ He will keep you save from all hidden dangers and from all deadly diseases… God says ‘I will save those who love me and will protect those who acknowledge me as Lord. When they call to me, I will answer them; when they are in trouble, I will be with them. I will rescue them and honor them. I will reward them with long life; I will save them.” 

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

“YOU HAVE MADE THE LORD YOUR DEFENDER, THE MOST HIGHT, YOUR PROTECTOR, AND SO NO DISASTER WILL STRIKE YOU, NO VIOLENCE WILL COME NEAR YOUR HOME. GOD WILL PUT HIS ANGELS IN CHARGE OF YOU TO PROTECT YOU WHEREVER YOU GO…” 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.