Clients are seniors and they have a house in LA County where the homestead exemption is $600K. The exemption amount refers to the equity in their house. Equity means fair market value minus all mortgages and liens on the house. The house current market value is $1.1M, while the mortgage balance is $650K and there are no other liens on the house, so the equity is $450K. Since the homestead exemption is $600K, the entire equity of $450K is covered by the exemption. 

Clients owe $417K of unsecured debt. A portion of that debt is contingent and unliquidated, about $200K. Contingent and unliquidated means that how much is really owed is not yet determinable legally because certain things have to happen first. In their case, a lawsuit has been filed against them claiming $200K but there is no trial yet and no judgment saying what they owe the plaintiff is $200K. This factor is relevant because $417K is just a single digit from the Chapter 13 limit but contingent and unliquidated debts are not part of the limit calculation. Well that’s good for clients, as otherwise, a higher claim by any one creditor can push them beyond the limit for Chapter 13, and they would be forced to choose between 7 and 11, not the convenient store mind you. Chapter 11 is a lot more expensive than Chapter 13, while a 7 puts their house at risk of being lost to the Chapter 7 trustee.

In Chapter 13, the trustee has no power to sell their house. The most the trustee can do is try to increase the proposed plan payment. Since their equity is fully covered by the homestead exemption of $600K, the liquidation analysis in 7 is entirely in their favor. Their plan payment can go way low depending on their disposable income. In this case, clients have proposed a 5% plan. This means they only pay 5% of the $417K of debt they owe over a period of 60 months, and there is absolutely no risk of them losing their house to the Chapter 13 trustee. They only pay $20K out of $417K over 5 years. That’s a great deal no matter how you look at it, even for Mr. Scrooge. 

On the other hand, if clients filed a Chapter 7, they would be on needles and pins and rightly so. Even if the petition states that the equity is $450K and fully exempt, at the 341A hearing, the Chapter 7 trustee may say this: My realtor says he can sell your house for 1.4M. He has 4 interested buyers who are competing with each other. If this happens, the equity will become $750K, that’s $150K over the $600K exemption.  This means that the trustee’s realtor will put a “for sale” sign on their front yard as soon as the day after the hearing, and will put their house on the MLS on the same day. Clients will lose their house. Trustee will give them $600K in cash from the sale proceeds and use the rest of the money to administer the case and pay some of the debts. 

Then here comes another big problem for debtors. The trustee will give them a notice saying that they will have to invest the $600K in a new house and must actually move into the new house within 6 months of their receipt of the $600K. If this does not happen, debtors will have to pay back the $600K to trustee! This is the truth, it’s absurd and insane and pure unadulterated nonsense, but it’s bankruptcy law at its finest. Not many people know this. I have one client right now who has moved back to her home country and fortunately for her, she purchased and moved into a new homestead abroad within the six-month period.

REJOICE FOR TOMORROW IS CHRISTMAS, 

THE BIRTHDAY OF OUR BELOVED LORD AND SAVIOR JESUS CHRIST

The whole world, most of humanity will be celebrating the birthday of our beloved Lord and Savior Jesus Christ in a few days. His birth into our world is confirmation of His love for us, and His Father’s love for us. Imagine the creator of the universe, of all things, all creatures, sending his beloved Son to us to redeem us from the consequences of sin when our ancestor, Adam and Eve at of the forbidden fruit. What a blessing indeed for humankind to have a loving and merciful God and whose son, Jesus, willingly follow the will of God for Jesus to save us from eternal damnation by His death on the cross, to redeem us, and to give us a chance to enter heaven and have everlasting life with them for eternity! It’s just such a joyous circumstance that our God and His Son, loving us so very much!

JESUS IS BORN IN A MANGER NOT A PALACE

Just remember God chose for Jesus to be born in a manger. St. Joseph and the Blessed Virgin Mary, who was about to give birth to baby Jesus, were rejected from the inn that they tried to get into. So they had to go to the manger, a place where the sheep and goats were kept, and a place for animals. Baby Jesus was going to be born in a place for animals. The Son of God was going to be born in such a humble place? Incredible. Yes unbelievable. God could have chosen for his son to be born the son of the king and queen of the most powerful country in the world then, to be born in a magnificent palace, but that was not His choice. St. Joseph was a carpenter and his wife, the Blessed Mother Mary was just a young housewife with no skills, yet God entrusted them to be the guardian of Jesus! I dare not say more at this time.

Yes, Kobe is there in heaven singing praises to our Lord with all of our loved ones who have passed on. 

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 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.

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.