Client is in his fifties or late forties. It’s hard to tell since clients now wear facemasks when I talk to them. I require them to wear a facemask and I also wear one. It’s the right thing to do. I also observe the 6 feet distancing required when I talk to them. It’s really safer this way for both clients and me. We may be both asymptomatic and of course, we don’t want to get killed by the virus or get disabled by it. 

My classmate in San Francisco checked into ICU on March 3, and he’s still there, even though he no longer is co-vid positive. His bodily functions have normalized such that he no longer needs dialysis. But he’s still unconscious as if asleep. The doctor has said that if he wakes up, his mental ability may be compromised as he’s had several mini strokes while fighting the virus. My wife and I have been praying for his full-recovery as his family still needs him to be around. If it’s God’s will, he will recover with all his faculties. After all, Jesus resurrected Lazarus who was already dead for several days. Further, Jesus also raised the young son of the widow of Nain from the dead.

Maybe you’ve never heard of Jesus resurrecting the son of the widow of Nain from the dead. This is recorded in the Gospel of Luke. Jesus arrived at the village of Nain during the burial ceremony of the son of a widow, and there raised the young man from the dead (Luke 7:11). The location is the village of Nain, two miles south of Mount Tabor. This the first of 3 miracles of Jesus in the canonical gospels in which he raises the dead, the other two being the raising of the daughter of Jairus, and of Lazarus. Lazarus, of course, was a friend of Jesus.

I hope and pray that Jesus will raise our friend from his comatose state soon. Then that miracle will be for the greater glory of God if He deems it right that our friend should continue living in our world where racial hatred is being confronted. Racial hatred has no place in our hearts. What did Jesus say? He said, “Love each other as I have loved you.” So don’t pretend to be a Christian if you have racial hatred in your heart.  All of us, each one of us are human beings and Jesus died for all of us, irrespective of race. He died for all races so that all races may enter heaven to spend eternity with him and God the Father and God the Holy Spirit. Jesus loved all of us, no matter what our race is. 

Going back to client. He owned a retail business for some time. The business was located in a good location so the lease was for $10K a month. The company that he owned which operated the business signed a lease for 20 years worth $2.0M. Three years ago, client sold the business to a third party. So he doesn’t operate the business anymore and he doesn’t own the business anymore. However, he personally guaranteed the commercial lease and landlord did not release him from the lease when he sold the business. Since the business was sold 3 years ago, client did not hear from the landlord since the new owner had been paying the lease. However, a couple of days ago, landlord emailed client and asked him for the rent payment for March, April, and May 2020. Is client still liable on the lease? Yes, of course he is. He did not have the landlord release him for his personal guarantee on the lease, so he is liable for the unpaid balance of the lease of close to $2.0M!

Aside from this $2.0M “surprise” liability, client also owes about $50K of credit cards. But he doesn’t own a house, so in this way he is fortunate because he can do a Chapter 7 and wipe out the $2.0M unpaid lease, and the $50K credit cards for a fresh start in life without accumulated debt. 

What are his other concerns?

1. Does his wife have to file Chapter 7 also with him? NO. 

2. Will wife be negatively impacted in any way by his Chapter 7 filing? NO.

3. Can he travel in and out of the country if he files Chapter 7? YES, OF COURSE. 

4. Should he be in LA to attend the hearing? NO. RIGHT NOW BECAUSE OF COVID, HEARINGS ARE DONE TELEPHONICALLY OR BY ZOOM. SO YOU CAN ATTEND THE HEARING EVEN IF YOU ARE ABROAD. THIS IS THE WAY IT IS UNTIL THE VIRUS IS GONE.

5. Can he keep the car lease? YES.

6. Will his credit score improve after filing Chapter 7?  Absolutely.  Score will be 500 upon filing, 620 on the first or second year after. Over 700 if new debts are handled properly on year 3 or 4. Tenth year, no record of filing in credit report, automatically removed.

7. Can he buy a car after Chapter 7? Yes, as soon as you get the discharge, you will be able to get a car loan but interest rate is higher. To buy a house, wait two years.

8. Can he get into business again after filing Chapter 7? Absolutely. There is no restriction or limit. Walt Disney filed twice Chapter 7 before Disney business became successful.

DISCLAIMER: NONE OF THE FOREGOING IS CONSIDERED LEGAL ADVICE. EACH CASE IS DIFFERENT.

“THOUGH TEN THOUSAND ARE DYING AROUND YOU, THESE EVILS WILL NOT TOUCH YOU…IF YOU MAKE THE MOST HIGH YOUR SHELTER, NO PLAGUE WILL COME NEAR YOUR DWELLING…” 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.