Client is 66. He says he is now old all of a sudden. He migrated here in 2004 so that’s 15 years ago. When he deplaned in LAX, he was just 51 and single. He says he’s been working hard since he arrived, but hasn’t really been able to amass any wealth. He worked various jobs paying $10 to $15 per hour and never bought a car. He only rents a room for $400 a month. He uses public transportation to get around and to get to work. Mostly, he uses the bus.

So he has to do some walking from the bus stop to wherever he is going. About 4 years ago, he treated for some kind of cancer. Chemotherapy worked and he has been cancer free so far. The problem of course is that for 5 years you are under observation to see for any recurrence. If there is a recurrence, you have to battle the cancer again. Another problem is that his knees are becoming a problem. They hurt when he walks. I said why don’t you use a cane? He said he’s going to have some surgery done on them.

His general feeling is that he’s not as strong as before. He feels weaker than before. So he doesn’t want to keep on working anymore. He says he owes $20K of credit cards. He has timely paid these cards for the last 10 years at $500 a month. That is the minimum payment required which pays all interest and a miniscule of principal. After paying $60K for minimum payments for the last 10 years, he said, would you believe, I still owe the very same $20K. I said, I know, doesn’t make any sense that you should pay $60K but still owe the same $20K. But that’s the way those cards work with minimum payments. You’re forever on the hook.

I asked if he is now on social security.  He said, not yet. I guess he’s waiting for the day he stops working to claim full social security benefits plus some. As you probably now, after 66, social security benefits will increase by about 7% a year until you reach 70, at which time, your social security benefits will be bigger, maybe 30% bigger than at age 66.

I’ve heard stories about this waiting game with social security. My friend was 68 and still waiting. Then he died unexpectedly from complications from diabetes. He was able to manage his diabetes for well over 20 years. But who knows what happened. One day, his blood sugar just shot up and they could not bring it down, then his heart failed.

He was never able to claim his enhanced social security. Life’s not fair, really.  People die when they don’t expect to die. You may be all young and strong with your whole future ahead of you. You get married in the Maldives with your sweetheart. Then you both go snorkeling; the current is too strong, you’re both swept further away into the ocean. You both try to swim back, but it’s too far. You both drown, and so sorry, you both die on your honeymoon. Did you plan on this happening? Nope. Or, you go to Phuket for your honeymoon. But the Tsunami kills you while your bride is safe in the hotel; totally unexpected. Life is short even if you live up to 96.

So the question is why saddle yourself with debt and be miserable every day when life is so short? Just get rid of all your debts if you qualify for Chapter 7, or Chapter 13.

Going back to senior client, he says he wants to retire now but his social security will only be $700 a month. Just the minimum monthly payment on the $20K of credit cards is already $500. He won’t have enough to pay his rent if he doesn’t get rid of the credit cards now. If he gets rid of the $20K cards now and moves to a senior housing room, he might be able to rent a room for $250. With $700 of social security, he will still have about $500 left for food and public transportation.

Second client is only 60. His wife left him some time ago. So he is now living by himself. His rent is about $800. His son works but lives by himself and doesn’t help him. Right now, he has zero income. Don’t forget, to get early social security, you have to be 62, and you only get 70% of full benefits. I don’t know where his income is coming from. This is what I call no visible means of support, but there’s some income coming in from somewhere.

He says that he started a business that requires him have an office here in LA and another office abroad. It’s a service related business. So he has two office rents to pay monthly. Total monthly office rent here and abroad is $5K. He financed this business with loans consisting of credit cards, bank business credit lines totaling $120K, and some personal loans. He got these loans 10 months ago. This is month eleven and the business doesn’t have enough cash flow for him to pay the $5K office rent. He has been paying the loans of $120K with minimum monthly payments for the last 8 months. He stopped paying on month 9. So, the business is now dead in the water. “Kaput.”

His creditors are calling and asking for payment, which he can’t do. I examined his financial situation and told him that he can do a Chapter 7 to start again fresh by wiping out the $120K and the personal loans. The matter at issue here of course is was there any intent to defraud creditors since all these loans are “very new,” all of them less than a year old. He needs an experienced bankruptcy lawyer to assure success of his Chapter 7. I would expect some opposition perhaps from several of his creditors. Maybe Michael Cohen might volunteer to testify against him? I hope not. Mr. Cohen’s testimony was very credible and pretty damning of POTUS, and to top it all, Mr. Cohen presented copies of checks signed by POTUS. Well, whatever will happen, will happen. I hope our democratic institutions can survive this massive earthquake. We pray to our God for guidance and protection. It took a lot of courage for Mr. Cohen to do what he did. Kudos, Michael Cohen!

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

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.