SENIOR ABOUT TO RETIRE SEEKS DISCHARGE OF $85K CREDIT CARD DEBT; CLIENT FILES CHAPTER 7 TO STOP EVICTION AND DISCHARGE $70K SECOND TRUST DEED; OBAMA FIGHTS BACK TO LIFT INJUNCTION ON AMNESTY

SENIOR WILL DISCHARGE $85K CREDIT CARDS

Client has been working as a registered nurse for 30 years, and is now 65 years old. Her pay scale is good. She grosses $10K a month, and nets after taxes and 401K deductions about $7,500. Ten years ago, her 25-year marriage ended in divorce when her then husband decided that he did not want to be married anymore. He suffered a heart attack when he was visiting his country of origin. There, a young nurse, 15 years younger than him, took very good care of him. Since he had to stay and recuperate, husband hired the young nurse for full time care. They stayed in a family home near the beach for 3 months. The beach life appealed to him greatly and slowly but surely he fell in love with his caregiver. The heart attack made him think a lot about his mortality. He decided that he did not want to return to America any more. He just wanted to live by the beach with his caregiver girlfriend, and forget about his hectic lifestyle in America.

He filed for divorce from Client, and agreed to pay for half of their $50K of credit card debt in the marital settlement agreement. Client kept their residence in Torrance, which had a mortgage of $500K. He relinquished his claim on client’s $200K retirement account. Back in the islands, he forgot about his obligation to pay for half of their credit cards, and did not pay a single cent on these cards. As a result, client had to pay $1700 monthly for the last 10 years to keep these cards current.  Client’s mother became ill with cancer 5 years ago in her home country. She had no medical insurance. Client used her credit cards to pay for mother’s medicals and hospitalization. When mother died last year, Client paid for her burial and had to send more money to her brothers and sisters who had families but insufficient income. All told, client’s credit card debt increased to the current level of $85K requiring $2600 a month of minimum payments.  Her house, which has equity of $150K, requires a mortgage payment of $3K. Client remarried 3 years ago, also to a younger man who made a third of her income. Let’s just say that she’s the major income earner.

Client will be 66 in 4 months, and will retire. When she retires her income will be $2500 a month. As you can readily see, even the credit card payment on $85K of debt is more than her retirement income. Client now seeks a Chapter 7 discharge of all her credit card debt. Thereafter, she will sell her house in Torrance, and keep the $150K of equity. Her 401K is now worth $300K. So, she will have $450K of cash and liquid investments. She has decided further, to retire in her home country after obtaining her discharge. She intends to buy a condo there paying a cash price of $120K and enjoy her retirement with her new husband. I guess new husband got a sweetheart deal with client being as it is that he won’t have to work anymore and live a life of ease in the islands.

STOPPING EVICTION & DISCHARGING 2ND TD OF $70K

Client purchased a house in Los Angeles for $500K zero down. The 2nd of $70K was used to finance the down payment of the house. Client purchased house with joint tenant. They live in the house together but are not legally married to each other. 1st mortgage payment is $3K a month. 2nd TD payment is $800 a month. Client lost his job 4 years ago. Partner is not able to pay the first and 2nd by herself. They used to split the payments half/half. Partner who is still employed and makes $5K a month with a government job requested for loan modification, which was denied by bank twice. So, mortgages have not been paid for 3 years. No mortgage or rent for 3 years, not too bad.  Last week, the first mortgage files a lawsuit for eviction since the residence was foreclosed in December 2015 against client and his partner. Client has minimal credit card debt but now owes the $70K 2nd TD as unsecured debt. Client decides to file Chapter 7 to stop eviction in the meantime, and to discharge the 2nd TD of $70K.

OBAMA FIGHTS BACK TO LIFT INJUNCTION ON AMNESTY

The OBAMA AMNESTY which allows people who are here without legal status provided they have a qualifying child who is an American citizen or legal permanent resident, to get a work permit valid for 3 years and renewable for periods of 3 years per renewal is temporarily stopped. People who entered as minors below the age of 16 and who graduated from a US high school or obtained a GED also qualify. Applications will be decided by the USCIS on a case-by-case basis. Documented entries with passports and I-94’s, or undocumented entries through the border, or otherwise undocumented, it doesn’t matter as long as AMNESTY requirements are met.

Last week, A Federal judge in Texas decided to issue an injunction to stop the implementation of the executive order. The President states that the Department of Justice will ask the judge for an emergency stay in the next few days, asking him to reverse himself. Will he reverse himself, probably not? The next step will be to appeal the injunction to the 5th Circuit. If the Injunction is lifted, both DAPA and DACA will be going full blast. DACA will proceed immediately, and DAPA by May 28. What are the chances that the 5th Circuit will lift the stay? Most legal experts expect that Court of Appeals will lift the injunction, although this may take a couple of months, and even though the majority of the 5th Circuit are conservatives because the weight of legal authority supports the executive order.

Prospective applicants should continue preparing and collecting documentary and other proof to show that they comply with requirements under DACA or DAPA.

ONE SERAPHIM CRIED TO ANOTHER AND SAID: “HOLY, HOLY, HOLY IS THE LORD GOD OF HOSTS; HEAVEN AND EARTH ARE FULL OF HIS GLORY!” – ISAIAH 6:3.

Lawrence Bautista Yang is a graduate of Georgetown University Law Center and has been in law practice for thirty years.  He specializes in bankruptcy, business and civil litigation and has handled more than five thousand successful bankruptcy cases in California.  He speaks Mandarin and Fujien and looks forward to discussing your case with you personally.  Please call (626) 284-1142 for an appointment at 1000 S Fremont Ave, MAILSTOP 58, Building A-1 SUITE 1125, Alhambra, CA 91803 OR at 20274 Carrey Road, Walnut, CA 91789.