BUSINESS FAILURE CAUSES DEBTOR WITH GOOD INCOME TO SEEK CHAPTER 13 RELIEF

Client is a single mom and a professional with good six figures income. In 2018 a friend approached her with a business for sale. Client had never been in business before but was interested in the prospect of making more money. According to the sellers of the business, it makes a net profit of $10K a month. Business is an established local retail that provides a service. Enticed by making another $10K a month, client bought the business. She obtained a working capital line of $100K and put in another $25K of improvements. In addition, she took over the commercial lease of $6K a month with 4 more years to run. Her friend acted as the industrial partner to run the business since client was employed full time in her profession. She was off to a rocky start.

The net profit of $10K a month was nowhere to be seen. At best, the business was breaking even. Then, in 2020, the pandemic came and wiped out small retail businesses. Client’s business was not spared. It was in the hole $5K a month which had to come out of client’s pocket. Even with her six figures income from her profession, doling out $5K a month to keep the business afloat was daunting and stressful for her. In addition, the business line of credit required a monthly payment of $2K. That’s $7K of out of pocket expenses that client did not have before when she had no business. Well, you know how it is. This is how life is. You make a mistake, thinking you will create $10K more of net income for yourself with the business, but instead, it is sucking $7K out of your wallet. Since she kept the business alive by shouldering the loss for 3 years, she has lost $250K of her hard earned money from this simple mistake. Well of course, she now takes a long hard look and decides that she enough is enough, and that even if the business is now improving a bit as co-vid becomes under control with the vaccines, she doesn’t want to have the business in her life anymore. Time for a divorce.

Of course, she would like to get Chapter 7 relief to just wipe out the $100K business credit line and $150K more of commercial lease for the next two years, but due to her above median income, she would not be eligible for Chapter 7 relief even if the equity in her house is way below the exemption amount of $600K.

Chapter 13 will allow her to pay a portion of what she owes which will be much less than her $7K monthly loss that she has been experiencing for 3 years.

How much she pays in her Chapter 13 plan will depend on her monthly deductible expenses under the means test. It can be as low as $150 a month. If she had a family of four, she would have more allowable expenses to deduct so she would pay less, than if she had a family of two because she would then have less allowable expenses to deduct.

Each case is different. The actual payment plan depends on many factors.

PRAYING ALWAYS HELPS

It also helps to pray to our God, His beloved Son, Jesus Christ, and the Blessed Mother Mary for divine protection against financial problems, because we have a God who loves us and His beloved Son, Jesus Christ, showers us with infinite mercy. All we have to do is humble ourselves and pray to the Sacred Heart of Jesus for a drop from his ocean of infinite mercy. Jesus revealed in 1930’s to Saint Maria Faustina Kowalska of Poland that all sinners which we all are and those who do not believe in God and those who do not yet know Jesus, should all be brought to His sacred heart and be submerged in the ocean of His infinite mercy, for the sake of His Sorrowful Passion. Anything you ask for when you pray the chaplet for His divine mercy will be granted, if compatible with His will. Moreover, you are guaranteed a peaceful death.

What is the current proof that God and Jesus are divine and all powerful? I refer you to exhibit A, the incorruptible body of Carlo Acutis!

CURRENT ONGOING PHYSICAL PROOF GOD IS ALMIGHTY

INCORRUPTIBLE BODY OF CARLO ACUTIS DIED 2007 AT AGE OF 15

Look at the incorruptible body of the blessed Carlo Acutis who died at 15 in 2007. You can look at his body in Rome, Italy, now 14 years after his death. He looks like he’s just asleep in his jogging suit and rubber shoes! That is a perfect example of an ongoing sign on earth that the God of Moses, our God, my God, is almighty and all-powerful that He even suspends the natural laws of biology and physics without any effort. He resurrected His one and only beloved son from death on the cross. Indeed, He has power over death.

I have actually thought, “What would the other religions believe if they actually saw the incorruptible body of the blessed Carlo Acutis? I think even Buddha, if he were alive today, would truly believe that Yahweh is the one True God.” No need to think about reincarnation and nirvana because his incorruptible body is available for all to see in Rome, Italy. We won’t need any kind of explanation on the efficacy of modern day mummification. Come on, man, that’s all bull. The truth is in plain sight. Believe your own eyes that the one true God is all-powerful and His name is

Yahweh, “I am who Am.” He is the alpha and the omega, the beginning and the end.

DISCLAIMER: NONE OF THE FOREGOING IS CONSIDERED LEGAL ADVICE FOR ANYONE. EACH CASE IS DIFFERENT. THERE IS NO ABSOLUTELY NO ATTORNEY CLIENT RELATIONSHIP ESTABLISHED BY READING THIS ARTICLE.

“ETERNAL FATHER, WE OFFER YOU THE BODY, BLOOD, SOUL AND DIVINITY OF YOUR DEARLY BELOVED SON, JESUS CHRIST, OUR LORD AND SAVIOR, IN ATONEMENT FOR OUR SINS AND THOSE OF THE WHOLE WORLD, FOR THE SAKE OF HIS MOST SORROWFUL PASSION, PLEASE HAVE MERCY ON AMERICA AND THE WHOLE WORLD.”

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.