SENIOR HAS $900 S.S. VS $35K CREDIT CARDS; BUSINESS CAN’T PAY $30K IT OWES

SENIOR HAS $900 S.S. VS $35K CREDIT CARDS;

BUSINESS CAN’T PAY $30K IT OWES

Client is 63. She divorced 20 years ago. Now, she lives by herself. Last year, at 62, she decided to get her social security. At 62, you only get 70% of what you would get if you got your social security at 66. You get full social security benefits at 66, but at 62, you get only 70%. At 70%, client only gets $900. If she waited 4 more years until she turned 66, she would get $1,200. That’s the way it works. Why do some people wait until 66 while others apply at 62?

GET SOCIAL SECURITY AT 62 OR 66?

I’ve asked many clients about this matter. Those who apply at 62 think that at least their still alive now at 62 so might as well get social security. What if they died at 64? Might as well get back some of your money now since you’ve contributed so long to get your money back. Every paycheck an amount is deducted from your salary as your social security contribution so you’re just getting your money back. If you died at 65 and not married, the money you contributed to social security just goes back to the government. If you’re married and your social security is higher than your spouse, then your surviving spouse gets your higher social security, but get this, your spouse looses her own smaller social security benefit. I mean, that sucks and totally unfair. Both you and your spouse worked a lifetime to contribute to social security and just because one of you dies, the other loses his or her own social security. This is just one of the ways you get shafted by your Uncle Sam. So the only viable way you can beat this absurd outcome is this: both you and your spouse have to stay healthy and safe until ripe old age of 98.

LIVING TO 98 WITH YOUR SPOUSE& BLM

Of course, this is easier said than done. God has to allow you and your spouse to live until 98. And by living up to 98, I mean, you’re both healthy and well all the way up to 98 and just suddenly die in your sleep. I know couples that live this long and just die one week apart. Now that’s a full life. We all know how fragile life is. One day you’re alive and well, the next day you’re gone. Kobe comes to mind, right? Accidental death. Or, George Floyd, Rayshard Brooks, and Breanna Taylor who are now the focus of the BLM protests. These are all very young people who did not have to die only if the police had love in their hearts, not racial hatred.

WHAT DID JESUS SAY?

What did Jesus say? “Love one another as I have loved you”. Only love can conquer hate. Jesus also said: “Do unto others as you would them do unto you”. So police reform has been a long time coming and way overdue. But any kind of reform will not work, unless there is a real change of heart from hate to love. I mean if you hate the guy, there’s nothing the guy can do to make him treat you well& with respect, right? He doesn’t like the way you look, the way you talk, the way you breathe, the way you eat, the way you smile, the way you laugh. He just hates everything about you. He hates that you exist and are standing in front of him. You can reform everything, but without a change of heart from hate to love, police reform may improve things a little. Sure, ban the chokehold that helps a little. But if this guy hates your very being, your very guts, your very existence no amount of police reform is going to work.

BACK TO CLIENTS

Back to client: Her social security is $900. She doesn’t work anymore. But she owes $35K of credit cards. Here’s the problem: She needs $1,100 of minimum card payments every month to keep the $35K of cards current. This is like David vs. Goliath. David was a teenager vs. Goliath who was the 8-foot tall warrior of the Philistines. Lucky for David, God was on his side. God told David to use his slingshot to hit Goliath on his forehead with a smooth stone. That’s how David killed Goliath.

Now how is client going to wipe out her $35K of credit cards now that her social security is only $900 and not even enough to pay $1,100 of minimum card payments? She has decided to use Chapter 7 as her sling shot to kill the credit card giants. Yes, God is on her side too. She survived cancer ten years ago so God still wants her to live on because God still wants her to stay here on earth to do some things for Him.

Second client is still young. Maybe 40. She is part owner of a corporation that has been affected negatively by the virus. The company owes $30K, which it can no longer pay because there is just no business coming in. Creditors have been sending the company demand letters for payment. You know how nasty creditors can get. They want their money and they want it now, the virus notwithstanding. When push comes to shove, it’s time to have the company file for Chapter 7. The company doesn’t have major assets anyway. It still has some cash, about $20K. That cash can be used to pay employee salaries. When the salaries are paid, then it’s time to file the case. Creditors will be given notice by the court to file their claims in the bankruptcy case. The trustee will administer the assets, if any. If there are no viable assets, then the case will end with the finding that there are no assets to distribute to creditors.

Owners can set up a new company to do the same business and service the same clients when things get back to normal and business goes back to normal.

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.