楊清泉律師專欄：CLIENT SEEKS CHAPTER 7 RELIEF AGAIN FOR $48 CREDIT CARDS

CLIENT SEEKS CHAPTER 7 RELIEF AGAIN FOR $48 CREDIT CARDS;

CLIENT SEEKS CHAPTER 13 AGAIN FOR DEFAULT ON RESIDENCE

Who said that, first is chance, twice is coincidence and third is habit? I have two new clients who are actually previous clients. The first is 55 and she filed jointly with her husband 12 years ago for chapter 7 relief of credit card debt. To tell you the truth, I still remember mostly everything about client and her husband one and a half decades ago. At that time, my main office was on Figueroa and 2^nd street in downtown LA, and it was just the next building from where the bankruptcy trustee hearings were being heard. I would just walk with clients from my office to the hearing. That was so convenient. Creditor reps would pass by my office for coffee after the hearings and talk about reaffirmation, and possible objection to discharge of claims. Creditor would sometimes show me the pattern of credit card usage of the last month, and say look, debtor’s income is only so much; how in the world can he pay his credit card debt, implying that there was some kind of fraud and absence of intent to pay for credit card debt inferred from insufficiency of income. Or, sometimes creditors would offer to keep the credit line open despite bankruptcy.

I remember this client clearly because her husband was a famous sports personality and actually held a world champion title in his sport. World champions are rare indeed, few and far in-between, and they stand out from the regular Joe or Mary. At that time, they had racked up about $60K of credit card debt. The minimum payment of $1,800 was putting a lot of strain on their finances. So, they opted for a fresh start without the $60K credit cards.  A fresh start is what they got on the financial side, but husband had other personal problems, and addiction to alcohol was one of them. When you start with beer for breakfast, beer for lunch and beer for every hour of the day and night, your liver just cannot process the alcohol quick enough. When push comes to shove, cirrhosis of the liver is the result after a decade and a half more of this kind of drinking. That’s when the whites of your eyes turn yellow, then you know you’ve met the end of your drinking days because you will soon die because your liver doesn’t work anymore.

Client tells me that her husband died two years ago from too much drinking. He just could not stop. He literally drank himself to death. What a sad way for a world champion to die. Once an epitome of good health to such an extent he become a world champion but he ends up dying the sad death of a drug addict. What a change of fortune. He had the background to be productive for the rest of his life just by teaching kids in his community how and what it takes to become a world champion like himself. This would be maximizing his God given talents. But alas, the “spirit is willing but the flesh is weak” – This is what Jesus said to Peter as He agonized on that night thinking about what He had to do to fulfill the will of God the Father, to redeem mankind from the consequences of sin. He said of his anticipated torture and death on the cross, Jesus prayed to the Father as He perspired blood, “Father, if it is possible that I pass on this cup, but nevertheless, Thy will be done, not mine!”

Client managed to get a divorce just a month before husband died, so technically she was not a widow. At any rate, client’s new credit card debt post fresh start 15 years ago, now reached $48K. So since this is her second time to seek a fresh start without debt, it’s just a coincidence. It’s not yet a habit. But client is such a positive outlook in life, her second fresh start, includes a new husband! She remarried last year. Our God, Adonai, and His one and only Son who died for ours sins, blesses her indeed!

My second old & new client filed a Chapter 13 case to cure arrears in his house 20 years ago. At that time, there was still the 6-month rule concocted by the bankruptcy judges in the central district of California to protect mortgage holders from debtors who file a 2^nd Chapter 13 case. If debtor filed a 2^nd Chapter 13 case, he would have to bring to the first hearing of creditors, all of the mortgage payments due in the last 6 months. So, if the mortgage is $2K a month, debtor would have to bring $12K in certified funds to be paid to mortgagee. For most debtors who were even having a hard time paying one mortgage payment, the 6-month rule, pretty much rooted out a lot of debtors from being able to get to second base. Client was one such debtor. He got hit hard with the 6-months rule. But fortunately for him, the first mortgage on which he had arrears went bankrupt, and the bank that took over the loan did not surface for a very long time. I believe the new bank did not appear for 3 or 4 years. By that time, debtor had set aside enough funds to get current on his mortgage and all went well for him until recently when he retired. He’s now behind 4 months on the mortgage. Now, Chapter 13 again is required to help him cure the default. He will be give 5 years to pay the default in 60 equal monthly installments, thus protecting his house from foreclosure.

Again, this is client’s second time, so it’s just a coincidence. It’s not yet habit.

Judas betrays Jesus with a kiss; “ The man I shall kiss is the one; arrest Him and lead Him away securely. He came & immediately went over to Him and said, ‘RABBI’. AND HE KISSED HIM. AT THIS, THEY LAID HANDS ON HIM AND ARRESTED HIM.” MARK 14:43-46

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 1000 S. Fremont Ave., MAILSTOP 58 BUILDING A-1 SUITE 1125, Alhambra, CA OR at 20274 Carrey Road, Walnut, CA 91789.