DEBTS WHICH ARE DISCHARGED OR NOT IN CHAPTER 7 BANKRUPTCY

The constitution of the United States of America allows bankruptcy to its citizens and residents to allow them to become productive again if they are saddled with accumulated debt. The Supreme Court calls Chapter 7 bankruptcy as “the fresh start”. You may have good income but debt repayment could be eating up all of your disposable income. In this case, you are compared to Sisyphus, the character in Greek mythology who is condemned to roll a rock up to the top of a mountain, only to have the rock roll back down to the bottom every time he reaches the top. The debtor with too much debt is the same as Sisyphus because no matter how much his income is, he pays his minimum required payments each month, left with no disposable income every month, only to have to pay out the same amount to his creditors next month and forever, leaving nothing for the debtor himself in savings. The debtor becomes a hamster running inside the wheel. It goes nowhere.

Are you a modern day Sisyphus?

The myth of Sisyphus prompted the French philosopher and Nobel-prize winner, Albert Camus, to say that an eternity of futile labor is a hideous punishment.  But debtors with too much debt in reality are the modern day Sisyphus. 

“Busting out of debt”

To break out of the debt cycle, or in bankruptcy slang, the Chapter 7 “bust out” of debt allows debtors to petition the court to grant relief from debt by “discharge” of debt by court order. The discharge order prohibits the creditor from collecting the debt, in effect wiping it out.

But what debts are discharged and what debts are not discharged? 

Dischargeable debts

The bankruptcy code states that a debt is dischargeable, unless it is excepted from discharge. §523 of the bankruptcy code contain a list of debts, which are not discharged. Generally speaking, most debts are discharged. For example, credit card balances up to any amount, medical bills, unpaid rents, payday loans, any kind of unsecured or secured loans or credit lines, bank loans, utility bills, car loans, even home mortgages are discharged in Chapter 7. Even hundreds of millions of court judgments for collection of debt is wiped out.

Non-dischargeable debts

What kinds of debts are not discharged? Child support, alimony, student loans (unless 3 prong test of hardship is proven in an adversary proceeding), HOA for the house where you live (not HOA for your rental property which is dischargeable), damages caused by intentional torts (willful intent to cause damage to the person or property is proven, income taxes owed where the requirements for discharge are not met (income taxes are dischargeable if specific requirements for discharge are met.)

Therefore, if you have too much credit card debt, for instance, you owe $40K of credit cards, a judgment for unpaid rent of $200K, owe $1M to the casino in Pechanga, owe a $2M in a civil lawsuit say for breach of contract, a Chapter 7 discharge will wipe all of your debts away. But if you owe $300K of student loans, unless you can prove hardship under the 3-prong test in an adversary proceeding, you are stuck with the student loans until you die, unless Uncle Biden gives you a way out it.

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 the virus, and 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 of his infinite mercy. Jesus has 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.

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 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.

Seven of my high school classmates passed away in 2021. They have all gone to meet their creator. I would like to mention their names here: Ricardo A, Victor Y, Jerry L, George C, Jimmy G, Edward N and Ricardo D. Three died of co-vid, one slipped and fell in the bathroom, one of heart attack, two of cancer. I pray all of them are in heaven with our Lord enjoying eternity with their loved ones as they must have all relied on the infinite mercy overflowing from the Sacred Heart of Jesus who died for us to redeem us, for the sake of his sorrowful passion.

Disclaimer: None of the foregoing is considered legal advise for anyone. There is absolutely no attorney client relationship established by reading this article.

“ETERNAL FATHER, WE OFFER YOU THE BODY, BLOOD, SOUL AND DIVINITY OF YOUR BELOVED SON, JESUS CHRIST, IN ATONEMENT FOR OUR SINS AND THOSE OF THE WHOLE WORLD, FOR THE SAKE OF HIS MOST SORROWFUL PASSION.”

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.