【破产法】WHAT IS A ‘HARDSHIP’ DISCHARGE IN CHAPTER 13? | 楊清泉律師事務所
12/20/2021 楊清泉律師事務所Chapter 13 is a reorganization of your financial affairs where you pay a portion of your debts over 36 months or 60
months depending on where your household income is. If it’s over the state median for the same size family as
yours following current government statistics, then it’s 60 months. If not, it’s 36 months. But in reality, as bankruptcy
law is practiced, even if your household is below median, the Chapter 13 trustee normally wants all of your available
disposable income and can and will object to a proposed 36 months plan on the basis of good faith or lack thereof.
Simply put, if you have $500 of disposable income are below median and propose a 36 months plan, it’s not a slam-
dunk case to have your plan confirmed by the court. Trustee will object to the 36 months plan saying that good faith
requires you to propose a 60 months plan because creditors can get paid 24 months more at $500 a month, or
another $12,000 so your 36 months plan should be denied on the ground of lack of good faith.
What happens if you are now on a 60 months plan paying $800 a month and currently you’re on the 38 th month, and
tragedy has just struck. By tragedy I mean, you just got Co-vid 19 despite having your 2 shots, have been intubated
and on a respirator for a month.
SACRED HEART OF JESUS GIVES YOU YOUR LIFE BACK
So you pray like you’ve never prayed before as if your very life depended on it, because it does. And the Sacred
Heart of Jesus, in its infinite mercy answers your prayers and gives you back your life! A week from now, you’re out
of the ICU and sent back home to recuperate. Two weeks from now, your test is negative. You’re Co-vid free.
But even though your Co-vid free, you’ve lost 30 lbs., can barely walk straight & looks like you went on a hunger
strike for a month. Skin and bones is what you look like now and you need a walker. Hey, but you’re alive and happy
to be alive. The problem is you can’t go back to work just yet, and you don’t know if you can continue making the
$800 a month Chapter 13 plan payment.
THE ‘HARDSHIP’ DISCHARGE
At this time, there are two kinds of “Hardship” discharge that you might be able to access. In both kinds, you may be
able to get a discharge without actually finishing all plan payments.
The first kind is a normal part of bankruptcy law which provides that if you have been permanently disabled that
drastically changes your ability to pay, and have already paid a substantial portion of your Chapter 13 plan, you
might qualify for a ‘Hardship” discharge. What is a substantial portion of your Chapter 13 plan? Most courts consider
at least a 70 percent payment of your plan substantial.
The other kind sunsets at the end of this year-unless it is extended. It is pandemic related relief for those debtors in
Chapter 13 that have been negatively impacted by Co-vid, provided for in the CARES ACT, and the CAA. If certain
conditions apply, debtors can request the court for a discharge without complying with the substantial portion
requirement. Specifically, if you are at least two months behind on your mortgage after a certain date during the
pandemic era and are negatively impacted by the pandemic, you can file a motion to request for discharge. If you
qualify for instance and you still owe $50K on your plan payments, you can now, before the law expires at the end of
the year ask for a discharge of the $50K without any further payments. Apparently, courts are given temporary
discretion to disregard the best interest of creditors, and disregard the fact that the current market has increased
home equities to the moon, beyond the exemptions applicable, and still give the eligible debtor a discharge.
From something bad comes something good. God is in control
Don’t worry God has a good plan for you, even if something very bad has happened to you. God can and does use
something done by the evil one to you to bring about something very good for you and other people. What does this
mean?
Joseph is sold into slavery
In Genesis 50:20, the brothers of Joseph throw him into a well and sell him into slavery because they are jealous of
him, being their father’s favorite. Their father is Jacob who is the grandson of Abraham, the father of the Israelites.
Joseph is 17 years old when he is sold into slavery. He is brought to Egypt as a slave, but in Egypt, he is falsely
accused of rape and is imprisoned for 13 years.
Clearly, the evil one has done a number on Joseph. But God gave Joseph the gift of interpreting dreams. The big
boss in Egypt, the pharaoh keeps dreaming about 7 fat cows, which are eaten by 7 thin cows. He’s going nuts trying
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to understand what this means. So he puts up a show, Egypt’s got talent, to see if anyone can interpret his dream.
No one is able to give him the right answer. Finally, the chief butler of the pharaoh tells him that there’s this guy in
prison who can interpret dreams, Joseph. The pharaoh summons Joseph to his palace.
7 fat cows are eaten by 7 thin cows
Joseph tells the pharaoh that there will be 7 years of extreme abundance followed by 7 years of extreme famine.
Then Joseph proposes to pharaoh that during the years of abundance the extra produce must all be stored in huge
barns so that the stored produce will be used to feed the people during the 7 years of famine.
Joseph appointed CEO of Egypt
Pharaoh appoints Joseph as CEO of Egypt and in charge of the storing and distribution of produce. During the years
of famine, the brothers of Joseph go to Egypt to get their ration of food because there’s no food anywhere. Joseph
forgives his brothers and takes care of them.
So there you are, from something evil done to him, Joseph is elevated to become the CEO of Egypt and he is able
to save the lives of many people including his brothers who sold him into slavery!
This is why Genesis talks about God’s plan for us, that He can turn something evil meant to harm us instigated by
the evil one, into something good for us that helps not only us by many people. “As for you, you meant evil against
me, God meant it for good in order to bring about this present result, to keep many people alive.” Genesis 50:20
God is truly awesome and all-powerful!
God’s plans are to prosper you not to harm you
Despite all your problems, you can rest assured that our God’s plans are to prosper you and not to harm you. “For I
know the plans I have for you”, declares the Lord, “plans to prosper you, not to harm you, plans to give you hope
and a future,” Jeremiah 29:11. What can be clearer than this that God loved as so that He sent His only beloved
Son, Jesus Christ, who also loved us so, to die for us, to give us a chance to spend eternity with them in heaven.
What an awesome and glorious plan for us underserving humans!”
Our God can and does wonders beyond our imagination. When you think all is lost, divine intervention springs out of
nowhere to resolve your problems. “Do not call to mind the former things, or consider things of the past. Behold, I
am going to do something new, now it will spring up; will you not be aware of it? I will even make a roadway in the
wilderness, Rivers in the desert,” Isaiah 43:18-19.
Believe it or not, Walt Disney, filed for Chapter 7 not once, but twice before his Disney global empire became
successful. He went on to become a billionaire after getting rid of all his debt twice. Milton Hershey, of Hershey
chocolates, the biggest chocolate business in the world, also filed for Chapter 7 once before he became successful
and a billionaire.
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 Joseph, 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.”
If you need debt relief, set an appointment to see me. I will analyze your case personally.
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Disclaimer: None of the foregoing is considered legal advise for anyone. There is absolutely no attorney
client relationship established by reading this article.
“HAVE I NOT COMMANDED YOU? BE STRONG AND COURAGEOUS. DO NOT BE TERRIFIED; DO NOT BE
DISCOURAGED, FOR THE LORD YOUR GOD WILL BE WITH YOU WHEREVER YOU GO. JOSHUA 1:9
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.
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