Fong Law Group

Online Survey Helps Older Adults Assess Their Financial Vulnerability

All older Americans are vulnerable to financial abuse, but there are certain circumstances that make someone more likely to be scammed. An online survey can help older adults (or their caregivers) assess their risk of being exploited based on how they make financial decisions. 

It is hard to ascertain the exact number of people affected by financial exploitation because studies show that elder abuse is underreported. However, one study found that monetary loss from financial elder abuse could be close to $3 billion a year. 

Experts have found that there are certain risk factors that can help indicate when someone is more likely to fall prey to a financial scam.  Peter Lichtenberg, director of the Institute of Gerontology at Wayne State University, found that older adults’ physical and mental health, along with their family and friend network, help predict their financial vulnerability. 

Lichtenberg has created a website (www.olderadultnestegg.com) with resources for professionals, older adults, and family members to assess whether someone is at-risk. He provides trainings for caregivers on how to determine if a loved one is experiencing cognitive decline and how to spot financial mismanagement. The website also includes a financial vulnerability survey that assesses a person’s risk of exploitation by asking 17 targeted questions. At the end of the survey, participants get a low, moderate, or high risk assessment. There are also resources to direct older adults and caregivers on how to get help. 

To take the survey and see the resources, click here.  

Online Survey Helps Older Adults Assess Their Financial Vulnerability

All older Americans are vulnerable to financial abuse, but there are certain circumstances that make someone more likely to be scammed. An online survey can help older adults (or their caregivers) assess their risk of being exploited based on how they make financial decisions. 

It is hard to ascertain the exact number of people affected by financial exploitation because studies show that elder abuse is underreported. However, one study found that monetary loss from financial elder abuse could be close to $3 billion a year. 

Experts have found that there are certain risk factors that can help indicate when someone is more likely to fall prey to a financial scam.  Peter Lichtenberg, director of the Institute of Gerontology at Wayne State University, found that older adults’ physical and mental health, along with their family and friend network, help predict their financial vulnerability. 

Lichtenberg has created a website (www.olderadultnestegg.com) with resources for professionals, older adults, and family members to assess whether someone is at-risk. He provides trainings for caregivers on how to determine if a loved one is experiencing cognitive decline and how to spot financial mismanagement. The website also includes a financial vulnerability survey that assesses a person’s risk of exploitation by asking 17 targeted questions. At the end of the survey, participants get a low, moderate, or high risk assessment. There are also resources to direct older adults and caregivers on how to get help. 

To take the survey and see the resources, click here.  

Will Bankruptcy Affect My Job or Future Employment?

If you want to file for bankruptcy, you might be concerned about how it could impact your career. Bankruptcy will sometimes have a negative consequence on your future employment, depending on where you apply for a position. There are some employers that may interpret it as evidence that you're disorganized or bad with money, although this isn't always the situation.

It is essential to understand your responsibilities, and which employees are most prone to be influenced by a bankruptcy case, and which companies are likely to find out about it.

What Impact will Bankruptcy Have on Your Job and Career?

There are several factors to keep in mind before declaring bankruptcy. One of the most crucial concerns you must address is how bankruptcy can affect your work or career.

Bankruptcy can sometimes have an impact on some kinds of jobs vs others. Bankruptcy can influence employment if you operate in the finance industry, including banks, or if you serve in a role where you manage money.

Bankruptcy and Employment

When you declare bankruptcy, most jobs are unaffected. However, bankruptcy may have serious effects on some kinds of jobs, so it's a good idea to verify first with Fong Law Group.

A bankruptcy history may result in dismissal, suspension, or other complications in a few designations such as the ones mentioned. Sometimes you won't be able to join recognized companies in some cases.

If you operate in one of the following fields, you need to see if bankruptcy may affect your job:

• Armed Force
• if you work in a bank
• Accountants, mortgage lenders, stock traders, and financial advisors are examples of financial services.
• Medicine, like a GP and dentist
• A realtor or a property manager

Is it Possible to Lose Your Employment if You File for Bankruptcy?

If you have to file bankruptcy, the employer cannot fire you, suspend you, or even take any other action towards you; your employer is prohibited from targeting you. Your boss, on the other hand, may terminate or penalize you if they believe you acquired the position in an irresponsible manner and that it is affecting your job.

It may be difficult to prove that you were unlawfully fired if the company suspends you after finding the bankruptcy but claims you were fired due to poor job performance.

You may consult Fong Law Group, in Monterey Park California and surrounding areas for assistance, and we can guide you. 

The Impact of Bankruptcy on Career Seekers

Private businesses are not bound by the same rules, and people discover that possessing a bankruptcy on the record haunts them.

Bankruptcy and Job

When applying for some positions, a credit check is performed by private companies. The credit history will inform the employer of the bankruptcy. Those seeking employment that might include the handling of finances, like bookkeeping, budgeting, payroll, etc., can face issues as a result of their bankruptcy filing.

While a company wants your consent to perform a credit report, if you decline, they may avoid hiring you. If you're asked for this permission, think about being open about what the company will see in the file. Most employers are sympathetic about bankruptcies, and hard times, especially over the last two years since the epidemic, so it is better to be honest than try to hide it.

Call Fong Law Group at (626) 289-8299 for a FREE consolidation, and talk to an attorney today. We are here to help you get through this difficult time in your life, and help you with a Fresh Start.

Social Security Shortfalls Are Predicted to Begin a Year Earlier Due to the Pandemic

The Social Security trustees are projecting that due to the economic downturn caused by the pandemic the Social Security trust fund will be depleted in 2033 -- one year earlier than the previous estimates. Once the fund is depleted, Social Security benefits will be reduced unless Congress acts in the interim. 

Social Security retirement benefits are financed primarily through dedicated payroll taxes paid by workers and their employers, with employees and employers splitting the tax equally. Employers pay 6.2 percent of an employee's income into the Social Security system, and the employee kicks in the same. Self-employed individuals pay the entire 12.4 percent Social Security payroll tax. This money is put into a trust fund that is used to pay retiree benefits. 

The trustees of the Social Security trust fund now predict that if Congress doesn’t take action, the fund’s balance will reach zero in 2033. The coronavirus pandemic has caused job losses, lowered wages and interest rates, and a drop in gross domestic product, which means payroll taxes declined. Sadly, an increase in deaths of older Americans due to Covid helped to keep Social Security from losing as much money as some had feared.  The impact of the pandemic over the longer term is still unclear, and the trustees said they are making no long-range assumptions “given the unprecedented level of uncertainty.”

Once the fund runs out of money, it does not mean that benefits stop altogether. Instead, retirees’ benefits would be cut. According to the trustees’ projections, the fund’s income from payroll taxes would be sufficient to pay retirees 76 percent of their total benefit (or 78 percent if the Disability Insurance fund is included).

The trustees recommend that Congress take immediate action to address the problem, but Social Security reform is not a top priority in Washington right now. Steps Congress could take to shore up Social Security include eliminating the cap on income subject to tax. Right now, workers pay Social Security tax only on the first $142,800 of income (in 2021). That amount can be increased, so that higher-earning workers pay more in taxes. The Social Security tax or the retirement age could also be increased.

For more on what the trustee’s report means, click here.  

Will Bankruptcy Stop the IRS From Collecting Tax Debts?

While the bulk of taxes are unavoidable in bankruptcy, some are. Fong Law Group can review your situation to see whether the tax bill can be forgiven. Though complicated, applying for Chapter 7 bankruptcy and determining if your obligations are dischargeable may help you get rid of some unpaid taxes.

Bankruptcy and IRS

There is a distinction between tax debt and liens. Tax debt is money owed to the state or the IRS. A lienholder is a judicial judgment that is lodged against the assets to fulfill a tax debt owed to the state and federal government. If you file for bankruptcy and complete all of the requirements, earlier tax levies will not be removed.

The amount will be dismissed, but not erased, from your duty to pay it back. So, the IRS can't seize your assets or bank accounts.

But, if you declared bankruptcy before a lien was issued, the lien may stay on the land. If you wish to sell the home in the future, you'll need to settle the lien first.

Automatic Stay

A device known as the automatic stay halts most legal processes and prevents lenders from pursuing collection methods once you apply for bankruptcy. It ensures lenders can't charge you, seize your wages, charge you, or contact you to recover the money you owe. The IRS is also subject to the auto-stay. The IRS can't issue you collecting debt notifications, garnish the income or savings balance, or even credit the tax refund when an effective system is in effect.

Debt Accrued after Declaring Bankruptcy is Not Subject to the Automatic Stay

The auto-stay protects you against creditors who are attempting to recover the debt that you accrued before filing bankruptcy. The automatic stay doesn't preclude creditors from attempting to collect the debt you acquired after filing for bankruptcy, known as "post-petition debt." The automatic stay will not prohibit the IRS from seeking to recover if you acquired tax liability after declaring Chapter 7 or 13 bankruptcies.

What Occurs to a Tax Liability That Isn't Dischargeable?

If you reside in Monterey Park California and surrounding areas, contact Fong Law Group for more information on the case.

If you declare bankruptcy, your tax liabilities are addressed differently.

• Chapter 7 bankruptcy. Excluding the obligatory stay, bankruptcy proceedings have little impact on non-dischargeable tax debts. The bankruptcy matter will be closed by the court clerk when the bankruptcy judge approves the dismissal. The IRS would be allowed to continue collection operations if the bankruptcy filing does not dismiss the IRS tax liability.
• Chapter 13 bankruptcy. You may employ a Chapter 13 repayment plan to deal with non-dischargeable debt. You'll suggest a 3- to 5 year payment plan for the IRS obligation (together with other bills). Your previous unpaid IRS obligation will still be discharged, and the non-dischargeable bill will be fully paid.

Call Fong Law Group at (626) 289-8299 for a FREE consolidation, and talk to an attorney today. We are here to help you get through this difficult time in your life, and help you with a Fresh Start.

Will Bankruptcy Stop the IRS From Collecting Tax Debts?

While the bulk of taxes are unavoidable in bankruptcy, some are. Fong Law Group can review your situation to see whether the tax bill can be forgiven. Though complicated, applying for Chapter 7 bankruptcy and determining if your obligations are dischargeable may help you get rid of some unpaid taxes.

Bankruptcy and IRS

There is a distinction between tax debt and liens. Tax debt is money owed to the state or the IRS. A lienholder is a judicial judgment that is lodged against the assets to fulfill a tax debt owed to the state and federal government. If you file for bankruptcy and complete all of the requirements, earlier tax levies will not be removed.

The amount will be dismissed, but not erased, from your duty to pay it back. So, the IRS can't seize your assets or bank accounts.

But, if you declared bankruptcy before a lien was issued, the lien may stay on the land. If you wish to sell the home in the future, you'll need to settle the lien first.

Automatic Stay

A device known as the automatic stay halts most legal processes and prevents lenders from pursuing collection methods once you apply for bankruptcy. It ensures lenders can't charge you, seize your wages, charge you, or contact you to recover the money you owe. The IRS is also subject to the auto-stay. The IRS can't issue you collecting debt notifications, garnish the income or savings balance, or even credit the tax refund when an effective system is in effect.

Debt Accrued after Declaring Bankruptcy is Not Subject to the Automatic Stay

The auto-stay protects you against creditors who are attempting to recover the debt that you accrued before filing bankruptcy. The automatic stay doesn't preclude creditors from attempting to collect the debt you acquired after filing for bankruptcy, known as "post-petition debt." The automatic stay will not prohibit the IRS from seeking to recover if you acquired tax liability after declaring Chapter 7 or 13 bankruptcies.

What Occurs to a Tax Liability That Isn't Dischargeable?

If you reside in Monterey Park California and surrounding areas, contact Fong Law Group for more information on the case.

If you declare bankruptcy, your tax liabilities are addressed differently.

• Chapter 7 bankruptcy. Excluding the obligatory stay, bankruptcy proceedings have little impact on non-dischargeable tax debts. The bankruptcy matter will be closed by the court clerk when the bankruptcy judge approves the dismissal. The IRS would be allowed to continue collection operations if the bankruptcy filing does not dismiss the IRS tax liability.
• Chapter 13 bankruptcy. You may employ a Chapter 13 repayment plan to deal with non-dischargeable debt. You'll suggest a 3- to 5 year payment plan for the IRS obligation (together with other bills). Your previous unpaid IRS obligation will still be discharged, and the non-dischargeable bill will be fully paid.

Call Fong Law Group at (626) 289-8299 for a FREE consolidation, and talk to an attorney today. We are here to help you get through this difficult time in your life, and help you with a Fresh Start.

Medicaid's Attempt to Ensure the Healthy Spouse Has Enough Income: The MMMNA

When most of a couple's income is in the name of the spouse who is receiving Medicaid, the spouse remaining in the community may wonder what he or she will live on. Medicaid has created some protections for the community spouse.

Although Medicaid limits the assets that the spouse of a Medicaid applicant can retain, the income of the “community spouse” is not counted in determining the Medicaid applicant’s eligibility. Only income in the applicant’s name is counted. Thus, even if the community spouse is still working and earning, say, $5,000 a month, he or she will not have to contribute to the cost of caring for a spouse in a nursing home if the spouse is covered by Medicaid. In some states, however, if the community spouse’s income exceeds certain levels, he or she does have to make a monetary contribution towards the cost of the institutionalized spouse’s care. The community spouse’s income is not considered in determining eligibility, but there is a subsequent contribution requirement.

But what if most of the couple's income is in the name of the institutionalized spouse and the community spouse's income is not enough to live on? In such cases, the community spouse is entitled to some or all of the monthly income of the institutionalized spouse. How much the community spouse is entitled to depends on what the local Medicaid agency determines to be a minimum income level for the community spouse. This figure, known as the minimum monthly maintenance needs allowance or MMMNA, is calculated for each community spouse according to a complicated formula based on his or her housing costs. The MMMNA may range from a low of $2,177.50 to a high of $3,259.50 a month (in 2021). If the community spouse's own income falls below his or her MMMNA, the shortfall is made up from the nursing home spouse's income.

Example: Joe and Sally Smith have a joint income of $2,600 a month, $1,900 of which is in Mr. Smith's name and $700 is in Ms. Smith's name. Mr. Smith enters a nursing home and applies for Medicaid. The Medicaid agency determines that Ms. Smith's MMMNA is $2,200 (based on her housing costs). Since Ms. Smith's own income is only $700 a month, the Medicaid agency allocates $1,500 of Mr. Smith's income to her support. Since Mr. Smith also may keep a $60-a-month personal needs allowance, his obligation to pay the nursing home is only $340 a month ($1,900 - $1,500 - $60 = $340).

In exceptional circumstances, community spouses may seek an increase in their MMMNAs either by appealing to the state Medicaid agency or by obtaining a court order of spousal support. Contact your attorney to find out about these options.

It’s Medicare Open Enrollment Time: Is Your Plan Still Working for You?

Every year Medicare gives beneficiaries a window of opportunity to shop around and determine if their current Medicare plan is still the best one for them. During Medicare's Open Enrollment Period, which runs from October 15 to December 7, beneficiaries can freely enroll in or switch plans. 

During this period, you may enroll in a Medicare Part D (prescription drug) plan or, if you currently have a plan, you may change plans. In addition, during the seven-week period you can return to traditional Medicare (Parts A and B) from a Medicare Advantage (Part C, managed care) plan, enroll in a Medicare Advantage plan, or change Advantage plans. 

Beneficiaries can go to www.medicare.gov or call 1-800-MEDICARE (1-800-633-4227) to make changes in their Medicare prescription drug and health plan coverage.

According to the New York Times, few Medicare beneficiaries take advantage of Open Enrollment, but of those who do, nearly half cut their premiums by at least 5 percent. Even beneficiaries who have been satisfied with their plans in 2021 should review their choices for 2022, as both premiums and plan coverage can fluctuate from year to year. For example: 

• Are the doctors you use still part of your Medicare Advantage plan’s provider network? 
• Have any of the prescriptions you take been dropped from your prescription plan’s list of covered drugs (the “formulary”)? 
• What are your total out-of-pocket costs? 
• Could you save money with the same coverage by switching to a different plan?

For answers to questions like these, carefully look over the plan's "Annual Notice of Change" letter to you. Prescription drug plans can change their premiums, deductibles, the list of drugs they cover, and their plan rules for covered drugs, exceptions, and appeals. Medicare Advantage plans can change their benefit packages, as well as their provider networks.   

Remember that fraud perpetrators will inevitably use the Open Enrollment Period to try to gain access to individuals' personal financial information. Medicare beneficiaries should never give their personal information out to anyone making unsolicited phone calls selling Medicare-related products or services or showing up on their doorstep uninvited. If you think you've been a victim of fraud or identity theft, contact Medicare. 

Here are more resources for navigating the Open Enrollment Period:

• Medicare Plan Finder, which helps you find a plan to match your needs: www.medicare.gov/find-a-plan 
• Medicare coverage options: www.medicare.gov/medicarecoverageoptions/
• The 2022 Medicare & You handbook, which all Medicare beneficiaries should have received. The handbook can also be downloaded online at:  medicare.gov/forms-help-resources/medicare-you-handbook/download-medicare-you-in-different-formats
• The Medicare Rights Center: www.medicareinteractive.org
• Your State Health Insurance Assistance Program, which offers independent counseling: www.shiptacenter.org

Five Things You Should Know Before Filing Bankruptcy

When you are undergoing financial stress, it's natural to do what it takes for alleviating the anxiety and pressure of the situation. Right from rent to mortgage to other regular payments, you can feel dreaded to release yourself from the debt.

On average, around 1.2 million Americans are compelled to file bankruptcy for various reasons like medical expenses, marital issues, and severe poverty. So before you consider filing bankruptcy, here goes the top 5 things to consider.

1. Bankruptcy can have an impact on the outcome

It's highly likely that you will either file Chapter 13 or Chapter 7 bankruptcy. And even though there are other kinds of bankruptcy, you may not be eligible to benefit from those.

In Chapter 7 of Bankruptcy, all your assets will be liquidated while the debts will be discharged. This implies that when the bankruptcy will come to an end, you are likely to be left with no debts unless you owned any assets that weren't eligible for discharging.

On the flip side, in Chapter 13, the debts will be reorganized in such a way that it becomes a pay plan. As a result, you are not compelled to liquidate the assets.

2. Bankruptcy can have a positive effect on the credit

Even though you are worried about the credit ranking delay that may be brought about by filing bankruptcy, it will remain in the records for some time. After that, you can actually improve your credit score. As the dischargeable debts get cancelled, you can move forward with a clean financial slate and start rebuilding the credit profile positively.

3. Getting an automated stay against creditors

When you file for bankruptcy, the court will surely issue a sty order against all debt collecting activities. Even though your debt is not suspended, it will definitely delay the proceedings until the case comes to an end or the stay has been lifted.

4. Bankruptcy is a safe and easy option

Contrary to popular belief, a bankruptcy is a relatively easier and fast process to get you rid of the unworthy financial situation. In most cases, you are likely to be awarded an automatic discharge within 9 months. Moreover, when you don't have any non-exempt assets or extra income, bankruptcy filing is surely the most cost-effective option.

5. You can keep a part of your property

When you are filing bankruptcy, you will be able to keep a small amount of the property as an exemption. These are assets that you can shield from liquidation. In most cases, exempt properties include pension, household belongings, motor vehicles, furnishing and other things as per your individual situation.

It's worth noting that these are also the primary causes why you should consider working closely with a bankruptcy lawyer. He is proficient and skillful enough to support you through the challenges and make sure that the case goes as it has been planned. If you are facing such an undesirable situation, contact us today and settle it with the best backup you can think of.

Call Fong Law Group at (626) 289-8299 for a free consolidation, and talk to an attorney today. We are here to help you get through this difficult time in your life, and help you with a Fresh Start.

Reasons to Consider Filing for Bankruptcy

Considering bankruptcy is not really a desperate move; rather it's the second chance all of us deserve for rebuilding our finances. Many people believe it to be the last resort that's only to be tapped when you have tried all the available debt alternatives but fail to come out of the maze.

Top reasons why bankruptcy can be the solution to your crisis

If you take a look at the picture from a distance, you will see that bankruptcy gets cleared up and gradually fades away. That's the primary reason why bankruptcy laws are drafted so that you get another scope in your life, a fresh start. If you are going through a harrowing financial situation, it's time to consider filing bankruptcy for the following reasons.

Unmanageable medical expense

In 2019, the American Journal of Public Health published a report that stated that around 66.5 percent of bankruptcy cases in the US stemmed from medical problems. It included the inability to pay high bills or loss of duration from work. Even when most people are equipped with health insurance, copays and job loss is affecting the finances of Americans.

When you are afflicted by serious injury or some rare disease, or health issues, it can result in excessive medical bills which won't take much time in wiping off your savings. Once all the funds have been exhausted, filing bankruptcy can be the only way out left, and the only way to give you peace again by getting rid of your debt.

Loss of jobs

No matter whether it's due to resignation or termination or layoff, a complete stoppage to the income can be extremely overwhelming. While some people are fortunate enough to get severance packs, in most cases you are likely to receive a pink slip on the work desk without any prior notice.

Without an exigency fund from where you can draw money and having to depend on the credit card alone can be a disastrous experience. Many people do not have enough savings for emergency situations that can help them buffer a job loss or similar financial problems. Those who are not able to gain employment cannot recover from the pecuniary crisis. Filing bankruptcy can help curb the negative impact of the situation.

Excessive use of credit

It's no secret that some people have no control over their expenses. Installment debt, credit card bills along with other loan repayments can subsequently go out of control till the borrower comes to a position from where they are not able to make the minimum payment.

When you cannot get access to required funds from friends or other members of your family, then considering bankruptcy can be your best bet. If you take a look at the prevailing statistics, you will see that debt consolidation often fails owing to several reasons. It's true that home-equity loans can help in some instances, but as soon as it is exhausted, you can face foreclosure on your home. Needless to say, a bankruptcy lawsuit can save the day for you.

With the help of an experienced and adept lawyer, you can file a bankruptcy lawsuit that can help you stop repossession, foreclosure, and wage garnishment. Wait no further. If you're going through a similar situation, talk to a bankruptcy lawyer today.

Call Fong Law Group at (626) 289-8299 for a free consolidation, and talk to an attorney today. We are here to help you get through this difficult time in your life, and help you with a Fresh Start.