Chapter 13 discharge of $330K judgment
CLIENTS are young seniors in their early sixties who have good income at $200K annually. Both husband and wife are in the medical field. Thinking that house values would keep escalating in 2007, they invested in an expensive house, which required them to have a second trust deed of $300K. When the real estate market collapsed, that investment house was foreclosed. Although the first mortgage had no foreclosure deficiency, the 2nd mortgage of $300K was left unpaid. In 2012, creditor filed a lawsuit to collect the $300K. As a result, a judgment for $330K against clients ensued late 2013. The judgment became a wage garnishment against both husband and wife. Since their monthly gross income was $16K month, their wages were garnished at $4K a month. With a new house mortgage payment of $3,800, FICA & SS deductions of $5,500, and a wage garnishment of $4,000, and 2 car payments of $1,000, the total deductions from is $14,300.
Thus, even at a gross of $16K, minus deductions of $14,300, clients are left with only $1,700 for the rest of their monthly necessities. The $4,000 monthly wage garnishment was a very heavy burden indeed. I filed a Chapter 13 for clients, which got confirmed at $3,500. That paid less than $200K of the $330K judgment, which shaved off $130K. It also paid the entire 2nd trust deed of $40K. Since the entire judgment would be paid at 60% with 40% being discharged after 60 monthly payments, that was a good deal. That was a lot better than paying interest on $330K at 10% yearly. That means money made that should have gone to their retirement is being used to pay a judgment for the rest of their lives. That was a depressing proposition for clients.
But what happened last week was nothing short of a miracle. Trustee sent a notice that the case was complete after one year of payments. The 2nd Trust deed had been completed paid off, and all claims had been paid. What this means is that the judgment creditor did not file a proof of claim for $330K within the prescribed time. Since judgment was unsecured (no judgment lien filed), the entire $330K would be discharged with zero payment!! The next step was to request for discharge. Once the discharge order is entered, the $330K judgment is discharged! God works in mysterious ways.
Praise be to Him in the highest! He shines light into the darkness to show you the way out of your problem, always.
GOP ponders position on Obama amnesty
The OBAMA AMNESTY which allows people who are here without legal status whether or not their entry was documented or not provided they have a qualifying child who is an American citizen or legal permanent resident, to get a work permit valid for 3 years and renewable for periods of 3 years per renewal is getting into higher gear because the USCIS was directed to start accepting applications by February 19, 2015. Aside from having red states file Federal lawsuits to challenge the constitutionality of the President’s executive order, the GOP is now regrouping to focus on how to respond to OBAMA AMNESTY. To do not like the President’s unilateral action to give 5 million illegals work permits. Perhaps he should have waited to work out a deal with Congress, a bi-partisan legislation good enough for him to sign into law this year providing a clear path for 11 million illegals to get work permits, permanent residency and citizenship. This is the much-awaited CIR, comprehensive immigration reform, that 11 million illegals are waiting for. OBAMA AMNESTY is the first step towards that direction.
The GOP is considering accepting filing fees for the work permits but not funding USCIS next month. It looks like a dishonorable tactic. I don’t think that will gain traction with the majority of Republican lawmakers who are conservative but forthright, a lot of them at least. Whatever the final outcome is, it looks like 2015 is going to be the year when CIR will come into being. In the meantime, I suggest you apply for your work permits now pursuant to OBAMA AMNESTY. This is the right step for you and your family. Come and see me for a free consultation to see if you qualify.
“I bow my knees to the father…that christ may dwell in your hearts through faith,” – Ephesians 3:14.
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Lawrence Bautista Yang specializes in bankruptcy, business, real estate and civil litigation and has successfully represented more than five thousand clients in California. Please call Angie, Barbara or Jess at (626) 284-1142 for an appointme nt at 1000 S Fremont Ave Mailstop 58 Bldg A-1 Suite 1125 Alhambra, CA 91803.