IS THERE A DIFFERENCE BETWEEN COMPANY CHAPTER 7 AND INDIVIDUAL CHAPTER 7?

The common belief is that a Chapter 7 for a company, or LLC, or any fictitious legal entity works the same way and ends the same way as a Chapter 7 filed by an individual person. Well let’s just say that after 4 years of not knowing the difference between lies, facts and truth, we’ve become numbed to truth and facts. We’ve been told, time and again, that this virus is nothing to worry about, that it would go away by summer with the warm weather, that it’s not serious or lethal. But here we are today with 27 M infections and 460,000 deaths. Seniors over 60 are getting the brunt of this pandemic with 75% of those who died by the virus being seniors over 60. Sure, we’ve got the Pfizer and Moderna vaccines being distributed; but good luck getting the jab even if your priority over 65. Try getting an appointment using Myturn.gov. It’s more like your turn to get screwed. Let’s see if you’re eligible. Are you a health care worker or over 65? Great, what’s your occupation? What’s your zip code?  Oh, ok, you can get an appointment at Pomona just go check availability. Then it goes to a calendar with today’s date highlighted, and that’s about the end of it. Click on that and nothing happens. You can call a phone number if you need help setting the appointment. Call the number and you’re on hold with a steady stream of info that ends with sorry all our representatives are busy doing whatever. This is the famous Myturn.gov. 

The extreme irony I see here is that you’ve masked up and keeping your social distance and keeping to yourself, but somehow that sneaky virus gets to you just before you get your appointment to get your jab. So sorry if you’re over 65, your chance of dying from the virus is a whopping 75%. The vaccine could have protected you 95% from getting infected but too bad, the gov’t has been left in too much of a mess by that stable genius that they just can’t get the vaccine from the source to your arms on time. See you in the next life!

In the meantime, aside from masking up and keeping your social distance, I really suggest that you keep on praying the rosary and Psalm 91 and beg the Blessed Mother Mary, Jesus and God the Father, to keep you and your loved ones safe and healthy, and away from the virus. And as I said before, say 3 Hail Mary(s) and Psalm 91 when you get your jab for divine protection from any serious adverse effects from the vaccine. You’ve got nothing to lose except your life.

Now the news is that CA has contracted with Blue cross to distribute the vaccine through the pharmacies to our arms. That’s great! When? First, Dr. Faucci says Pfizer and Moderna vaccines are the same, there’s no difference between them. In fact, Dr. Faucci himself got vaccinated with Moderna. They are both 95% effective. That is so cool. But now J&J has its new just approved vaccine, which only takes one dose. The problem is the J&J vaccine is only 65% effective. So given a choice, wouldn’t you rather get Moderna or Pfizer and be 95% immune, than J&J, the one dose but only be 65% immune? Well, whatever. I don’t think we get to choose. And the problem is J&J is ready to ship their vaccine. And what happens if you get J&J, instead of the other two? You won’t feel that confident about being protected is what the problem is. But they’re more concerned about herd immunity, you see. If 75% to 80% of the population gets the vaccine, whether it’s Pfizer, Moderna or J&J, then that naughty virus won’t be able to survive since most people will then be immune. There won’t be enough host bodies to infect. So sorry virus, it’s your turn to die.

I’d rather get Pfizer or Moderna, but who knows, we might end up with J&J. That’s the roll of the dice. Sure 65% immune is better than no immunity, right? Sure but 95% immune is still better than 65% immune, isn’t that just common sense? You don’t need to be an MD to understand that 95% is better than 65%. I mean, come on man, whom are you kidding here? If you had a choice, why choose the 65% one? You have to be a retard to do so. 

And the side effects are something else. Out of 24M vaccinated in the USA, there have been 130 deaths. Well, they could be related to the vaccine or not. Everyday 7,800 people die in the USA from whatever causes, so who’s to say that the 130 died from causes unrelated to the vaccine? Sure that sounds logical. On the other hand, there’s news about this family that celebrated Thanksgiving and two brothers and an uncle got infected and they all died. This is really very sad for the affected family. It just should not have happened at all. Infections in Singapore are one a week. And there are no deaths from the virus. Something is really wrong. We were not protected from this virus. 

Let’s go back to business. When a company or any other fictitious legal entity files for Chapter 7, there are no exempt assets. The trustee determines if there are any viable assets to administer, liquidate, and distribute to creditors of the company. After all is said and done, the trustee informs the court that he is done and makes a report of what happened. The court then issues an order of “termination” ending the bankruptcy proceedings. The trustee determines that there are no viable assets to administer and creditors get nothing. This is not a discharge order that wipes out the debts of the company. The termination order and the trustee report of no assets taken together means that the company has not assets to speak of so this company is bankrupt. Most creditors will forget about suing the company because the judgment they obtain will be useless since there are no assets to enforce judgment on. Creditor may get a judgment for $1.0M but there is nothing to attach because the company has no assets. 

On the other hand, when an individual person files for Chapter 7, he or she gets a “discharge” order from the court. That order from the court wipes out all dischargeable debts of the debtor. For example, the bank has a $2.0M judgment against debtor. The discharge order wipes out that $2.0M judgment. The debtor is thus given a “fresh start” in life, with no debt. Debtor keeps all his exempt assets. Most of the time, debtor is able to exempt completely the residence, everything in it, the cars, and the retirement accounts, everything that he or she owns. So debtor starts life again with all his assets but without debt. 

In a company Chapter 7, the company gets a “termination” order. In an individual Chapter 7, the debtors get a “discharge” order. 

In an individual Chapter 7, the debtor is literally resurrected from near death by too much debt. Debtor is resurrected free of debt and given a fresh start in life with no previously accumulated debt. It works quite well for the individual debtor as it worked very well for Walt Disney who filed for Chapter 7 twice as an individual before his Disney Empire became a global success, as well as for Milton Hershey who filed for Chapter 7 once before his Hershey chocolate empire became a global success. Both became billionaires after they filed for individual Chapter 7. I’m not saying you too will become a billionaire after Chapter 7, but certainly, you will have a very good chance of making good money and become rich as well without accumulated debt. You will have a fresh start in life and become productive again.

If you need debt relief, please set an appointment to see me. I will analyze your case personally.

“WHOEVER REMAINS UNDER THE PROTECTION OF THE ALMIGHTY CAN SAY TO HIM, YOU ARE MY DEFENDER AND PROTECTOR, A THOUSAND MAY FALL DEAD BESIDE YOU, TEN THOUSAND ALL AROUND YOU, BUT YOU WILL NOT BE HARMED. YOU NEED NOT FEAR THE PLAGUES THAT STRIKE IN THE DARK…” PSALM 91.  Written by Moses a long time ago, maybe 3000 years ago. 

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.