【破产法】WHAT IS A 100% PLAN IN CHAPTER 13? | 杨清泉律师

Clients are husband and wife in their fifties. Their combined household income is a gross of $140K annually. They

own a house with equity of $300K in LA. They have no dependents. At this point, I don’t see much of a financial

problem because they’re grossing almost $12K a month. Even with a mortgage payment of $3200 monthly, there

should be more than enough disposable income at the end of each month. Even with two car payments totaling

$900, they should still be able to save some money every month.

But they tell me that they have about $25K of credit card debt on which they try to pay $1K a month but try as they

would, for the last 3 years, they can’t bring the principal down. After paying $36K of interest from 2019 up to now,

they still owe the same $25K.

Under the means test, clients will not qualify for Chapter 7. They will qualify for Chapter 13. Applying the liquidation

analysis, they can actually propose a low plan payment, but they are way over the median income in LA for a family

of two. Consequently, in Chapter 13, they will have to propose a 100% plan. What does this mean? This means that

the $25K of credit cards they owe must be paid in full (meaning the principal of $25K) without interest over a period

of 60 months in equal monthly payments. This is about $450 a month for 60 months or 5 years. If clients timely pay

all plan payments, then after 60 months has transpired, the court will enter a DISCHARGE ORDER. That means

that clients will no longer owe anything on the $25K of credit cards. Those are legally deemed fully paid. How does

that work out in real life?

How the discharge order works

Well, let’s say that they owed American Express $5K when they filed their Chapter 13 case. After the court enters

the discharge order, AX files a lawsuit to collect the unpaid interest of 5 years while they were in Chapter 13. That

lawsuit is illegal because it contravenes the discharge order of the bankruptcy court, a Federal court. The AX lawsuit

will be dismissed because it violates the discharge order and AX can be sanctioned by the Federal court in an

amount in the court’s discretion. The bankruptcy court may penalize AX say $50K for filing the lawsuit to collect

interest from clients because AX is in contempt of the court’s discharge order.

After applying the means test to clients’ circumstances, they have at least $1500 a month of disposable income.

Therefore, it is undisputable that clients will have to propose a 100% plan in their Chapter 13 case.

I am aware that after having represented thousands of clients in bankruptcy cases clients always have what I call

“the fear factor” in doing a bankruptcy. They get nervous. “Is this the correct path for me?”

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 on dreaming about 7 fat cows, which are eaten by 7 thin cows. He’s going nuts

trying 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.

2 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.

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 advice 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

PRAYING ALWAYS HELPS

It also helps to pray to our God, His beloved Son, Jesus Christ, and the Blessed Mother Mary for divine protection

against financial problems, because we have a God who loves us and His beloved Son, Jesus Christ, showers us

with infinite mercy. All we have to do is humble ourselves and pray to the Sacred Heart of Jesus for a drop from his

ocean of infinite mercy. Jesus revealed in 1930’s to Saint Maria Faustina Kowalska of Poland that all sinners, which

we all are and those who do not believe in God and those who do not yet know Jesus, should all be brought to His

sacred heart and be submerged in the ocean of His infinite mercy, for the sake of His Sorrowful Passion. Anything

you ask for when you pray the chaplet for His divine mercy will be granted, if compatible with His will. Moreover, you

are guaranteed a peaceful death.

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

3 perfect example of an ongoing sign on earth that the God of Moses, 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.” He is the alpha and the omega, the beginning and the end.

“ETERNAL FATHER, WE OFFER YOU THE BODY, BLOOD, SOUL AND DIVINITY OF YOUR DEARLY BELOVED

SON, JESUS CHRIST, OUR LORD AND SAVIOR, IN ATONEMENT FOR OUR SINS AND THOSE OF THE

WHOLE WORLD, FOR THE SAKE OF HIS MOST SORROWFUL PASSION, PLEASE HAVE MERCY ON

AMERICA AND THE WHOLE WORLD.”

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.