NEW CHAPTER 13 DEBT LIMITS INCREASED TO $2.75M

On June 21, 2022, Pres. Biden signed into law the Bankruptcy Threshold Adjustment Act. It increased the Chapter 13 debt limits to a total of $2.75M without secured or unsecured separate categories.

The old limit for Chapter 13 before this amendment was $1.395M for secured debts and $465K for unsecured debts.

With many individuals being forced to borrowing significantly more to survive the pandemic, especially individuals with small businesses, the old limits were not practical to provide reorganization relief.

For example, client borrowed $500K business loans so his business can continue operating despite losses caused by the pandemic, he would not qualify for Chapter 13 because the unsecured debt limit was only $465K. His alternative would have been Chapter 7 where his house would be at risk if the equity was near $600K, or Chapter 11 which costs a lot more than Chapter 13 in legal fees. Chapter 11 would cost ten times more in legal fees than Chapter 13.

In client’s case, he can propose a Chapter 13 plan that pays a small portion of the $500K. Depending on his equity on the house, his Chapter 13 plan can be very small. If his equity in his residence does not exceed $600K and he lives in Los Angeles county, he may even be able to get a plan payment for only 2% of $500K, that’s about $200/month plan payment for 60 months. It’s a great reorganization for client. After paying only $10K of the $500K in 60 months, the court will discharge or wipe out $490K of the $500K business loans.

This law will expire in 2 years from June 21, 2022. So, it will be effective for one more year from now until June of 2024, unless it is extended or made permanent. Considering next year is election year, the chances of extension of being made permanent is good. Besides, $495K for unsecured debts is actually forcing debtors into unpleasant options.

If you have too much debt and need relief, please set an appointment to see me. I will analyze your case personally. If you have a small business that increased your debts to survive the pandemic, now is the time to seriously consider Chapter 13 to reorganize. It’s the right step to take.

Disclaimer: None of the foregoing is considered legal advice for anyone. There is absolutely no attorney client relationship established by reading this article.

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.

“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 or 1000 S. Fremont Ave., Mailstop 58 Building A-10 South Suite 10042 Alhambra, CA 91803.