Fong Law Group

Finding the Right Hospital Bed Rental

If you are caring for a loved one at home, you may need to rent a hospital bed. Here are the ins and outs of hospital bed rentals. 

The benefit of a hospital bed is that it adjusts to allow people with limited mobility to more easily get in and out of the bed. The adjustable features include the raising and lowering the head and foot of the bed as well as changing the bed’s height. The beds usually have the option to add side rails to keep patients from falling out of bed. The following are the main types of hospital beds:

• Manual. A manual hospital bed is the cheapest type of bed. It adjusts with a hand crank, and requires a certain amount of physical strength to adjust. 
• Semi-electric. A semi-electric hospital bed uses electric controls to adjust some components (for example, raising the bed’s head and foot) and a manual crank to adjust other components (for example, the height of the bed). 
• Electric. A full electric hospital bed has all electric controls. The patient has the ability to control all the adjustable features with a remote control. 
• Special beds. There are also beds that serve special purposes. A bariatric bed is a hospital bed that is specially designed to be sturdier and more comfortable for heavier patients. A low bed is set closer to the floor to prevent falling out of bed. A Trendelenburg bed provides even more adjustable features than a regular hospital bed, including the ability to stand straight up or turn into a chair. 

Hospital beds can be rented from medical supply companies and usually cost $200 to $500 a month to rent. There are a variety of ways to pay for rentals, including: 

• Insurance. Most private insurance policies cover hospital bed rentals. You will need to check your insurance policy to see how much is covered and under what circumstances. You will likely need a doctor’s prescription in order to get coverage. 
• Medicare. Medicare covers durable medical equipment, including hospital beds. Medicare will pay 80 percent of the cost of the bed rental. In order to get coverage, you must be enrolled in Medicare Part B, have a prescription from a Medicare-enrolled physician saying that the bed is medically necessary, and rent the bed from Medicare-enrolled medical equipment supplier. Medicare will cover hospital beds with variable height functions or electric functions only if deemed medically necessary.
• Veterans benefits. Health benefits from the Veterans Administration also cover medical equipment like hospital beds. Again, a doctor must prescribe the bed as medically necessary. 

Medicaid. If you are eligible for Medicaid home care services, Medicaid may pay for a hospital bed rental. Because Medicaid is a joint federal and state-run program, the rules vary depending on the state.

Repossessions and Bankruptcy

Repossessions and Bankruptcy

Repossession occurs when a lender takes back property that was used as collateral or leased in a transaction.  If you are behind on a car payment, the lender that financed your vehicle can repossess it at any time. California law does not require any special notice of repossession.  This is a unique area of the law, and one of the more aggressive collection actions in California.

When you purchased your vehicle, you probably signed a purchase contract or credit contract to finance the car.  In these contracts, the buyer agrees that the seller, also known as the “lien holder,” may repossess the property if the buyer falls behind on payments at any time.  Most lenders allow for a small grace period, but some jump at the chance to repossess your vehicle.  These contracts may also include fines and penalties the buyer must pay to cover the costs of the repossession, as well as the depreciated value of the vehicle, and most of the time they also can get awarded court costs associated with the repossession.

Repossession Process

When your lender chooses to repossess the vehicle, they will usually work with a repossession agent.  Most repossession agencies focus on auto repossession.  The agent typically uses a tow truck to repossess the vehicle, although some agencies will notify the owner and try to facilitate an amicable return without any surprises.

Many of our clients have lost their vehicles through the repossession process.  Some of them were only late by a few days. Small lenders and banks are typically very aggressive and will exercise their repossession rights in a timely fashion.

Bankruptcy Can Save Your Vehicle

Once your car is repossessed, your options are extremely limited.  You can try to pay the balance owed at that point (which is probably not an option) or you can file an emergency Chapter 13 bankruptcy.  Unfortunately, time is not on your side once they repossess your car.

You have ONLY 10 DAYS usually after the repossession to file for Chapter 13 bankruptcy and save the vehicle.  After this window expires, the vehicle will be sold at auction.  If the lender fails to recoup the amount owed on the vehicle at auction, you may be responsible for the balance owed.

To maintain possession of your vehicle and avoid repossession, please contact Fong Law Group today for a free consultation at (626) 289-8299.

Can an IRA Affect Medicaid Eligibility?

For many Medicaid applicants, individual retirement accounts (IRAs) are one of their biggest assets. If you do not plan properly, IRAs can count as an available asset and affect Medicaid eligibility.

Medicaid applicants can have only a small amount of assets in order to be eligible to receive benefits ($2,000 in most states). Certain assets -- i.e., a house, car, and burial plot -- are exempt from eligibility determinations. Whether your IRA counts as an exempt asset depends on whether it is in "payout status" or not.

At age 72 (or if you turned 70 ½ in 2019 or before), individuals must begin taking required minimum distributions from their IRAs, which means the IRA is in payout status. You may also be able to choose to put your IRA in payout status as young as age 59 ½ if you elect to take regular, periodic distributions based on life expectancy tables. If an IRA is in payout status, depending on your state, it may not count as an available asset for the purposes of Medicaid eligibility, but the payments you receive will count as income. Medicaid recipients are allowed to keep a tiny amount of income for personal use and the rest will go to the nursing home. 

If the IRA is not in payout status, the IRA is a non-exempt asset, which means the total amount in the IRA will probably be counted as an asset, affecting your Medicaid eligibility. In order to qualify for Medicaid, you will need to cash out your IRA and spend down the assets. Alternatively, you could transfer the money to your spouse or someone else, although there will likely be an income tax penalty for doing this. (Roth IRAs have no required minimum distributions and cannot be put in payout status, but they are usually counted as assets.)

The rules for a 401(k) are similar to an IRA. If the 401(k) is not in payout status, Medicaid may count as an asset any funds you are eligible to withdraw from the 401(k)--even if you have to pay a tax penalty to withdraw the funds. 

Note that the rules for a Roth IRA may be different. If you have a Roth IRA, depending on the rules in your state, it may not be exempt at all because Roth IRAs do not require minimum distributions.

The rules regarding IRAs and Medicaid are complicated and vary from state to state. You should talk to your attorney about your IRA to determine the best course of action for you.

Debt Defense

Debt Defense

Contact a Fong Law Group Bankruptcy Lawyer

You may have gotten into debt on your own, but you don't need to get out of it on your own. Fong Law Group is Board Certified in California Consumer Bankruptcy Law by the California Board of Legal Specialization; we have years of experience in helping residents of the Monterey Park and surrounding areas get out of debt, and start fresh.

RETAIN US         

1. After you retain us, we will sit down with you, and analyze your debt, and determine your property exemptions. We will make sure you are eligible, and figure out the best options for you.

CASE DEFENDED              

2. Once retained, we will get papers filed, and let your creditors know you have retained us which most of the time stops the harassing phone calls and wage garnishments. We will file your answer with the Court to prevent any further default judgments. We will appear for you at any Court hearings and handle any motions that are filed.

CASE RESOLUTION         

3. The vast majority of our collection lawsuits that we fight are either dismissed by the creditor or dismissed during bankruptcy by the courts depending on the type of bankruptcy filed. The resolution of your case depends on a variety of factors including: The Court; The Creditor, The Creditor Attorney/Law Firm, and the Documents that the Plaintiff is prepared to show the Court.

A variety of options are available for bankruptcy in California. 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.

IRS Announces That Face Masks and Related Purchases Are Tax Deductible

The IRS has announced that the tax deduction for medical expenses includes amounts spent on face masks, sanitizer and other products purchased to prevent the spread of the coronavirus. 

If you have significant medical expenses, you may be able to deduct them from your taxes. Many types of medical expenses are deductible, from long-term care to hospital stays to hearing aids. This year, the IRS has made clear that “medical expenses” also includes amounts paid for personal protective equipment, such as masks, hand sanitizer, and sanitizing wipes, as long as they were used for the primary purpose of preventing the spread of COVID-19. 

However, this deduction will be irrelevant to most taxpayers. To claim the deduction, your medical expenses have to be more than 7.5 percent of your adjusted gross income and your other deductions have to be sufficient to justify itemizing rather than taking the standard deduction. This may be the case if you have large home care, nursing home or assisted living expenses (the latter only deductible if you’re there for medical reasons), in which case the cost of your face masks, etc., is going to be a drop in the bucket. In addition, you can only deduct medical expenses you paid during the year, regardless of when the services were provided, and medical expenses are not deductible if they are reimbursable by insurance.

Due to the ongoing coronavirus pandemic, the deadline for filling 2020 taxes has been extended to May 17, 2021.

For the IRS’s press release on deducting personal protective equipment, click here.  

For more information on what you can and cannot deduct, see Publication 502 on the IRS Web site.

Collection Defense

Collection Defense

 

Judgment Collection Defense Law Basics:

Sometimes consumers have difficulty paying on legal judgments levied upon them from a court of law or as part of a settlement. Individuals who have been sued in court and lost may often wind up owing thousands of dollars, or more to the plaintiff or creditor.

Judgements and Bankruptcy

Just because there is a court judgment against an individual does not, however, mean that the individual actually has enough money to cover payment of the judgment. Sometimes these plaintiffs will accept a payment for less than the entire judgment and settle the debt, thereby avoiding a bankruptcy. Those that will not work with you, can majority of the time be eliminated through bankruptcy as long as it is not a secured debt. 

Determining the Best Course of Action

Fong Law Group can answer your important questions about judgments, collections and bankruptcy law in California. We will be able to evaluate each form of debt that you have to determine the best course of action. You may need to file for Chapter 7 bankruptcy or Chapter 13 bankruptcy, but we are here to help you through this difficult time and get you back on the road to recovery and a fresh start.

Contact Fong Law Group

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 get back on your feet, and having a fresh start

Medicaid Recipients Have a Little More Time to Spend Down Their Stimulus Money

The one-year deadline for nursing home residents on Medicaid to spend down their first round of stimulus checks is here, but they may have a little extra time. 

In March 2020, the Coronavirus Aid, Relief, and Economic Security (CARES) Act authorized $1,200 stimulus checks to most Americans, including Medicaid recipients. Another round of $600 checks was authorized in December 2020, and $1,400 checks were ordered in February 2021. The stimulus checks are not considered income for Medicaid recipients, and the payments have been excluded from Medicaid’s strict resource limits for 12 months. 

While the one-year deadline for spending down the first round of checks is here, another COVID-19 bill gives beneficiaries more time. The Families First Coronavirus Response Act passed in March 2020 provides that if you were enrolled in Medicaid as of March 18, 2020, the state cannot terminate a recipient’s benefits even if there is a change in circumstances that would normally cause the benefits to be stopped. The law states that the recipient’s Medicaid coverage must continue through the end of the month in which the Secretary of Health and Human Services declares that the public health emergency has ended. The public health emergency is set to end April 20, 2021, but it will likely be extended. 

While Medicaid recipients may have a little extra time, they shouldn’t delay too long in spending down the money if it has pushed them over the resource limit, which is $2,000 in most states. The following are examples of what a Medicaid recipient may be able to spend the money on without affecting their eligibility:

• Make a payment toward paying off debt.
• Make small repairs around the house. 
• Update personal effects. Buy household goods or personal comfort items. Buy a new wardrobe, electronics, or furniture.
• Buy needed medical equipment, see a dentist or get eyes checked if those items aren't covered by insurance.

While Medicaid recipients usually cannot gift money or assets and remain eligible for benefits, recipients in at least some states should be able to make gifts from the stimulus money during the first 12 months following receipt. If you have questions about how you or a family member in a nursing home can spend the money, contact your attorney.

Foreclosure

Foreclosure

If you own a home, this is probably your largest and most valuable asset and losing it can be devastating. If you are facing a foreclosure in California, Bankruptcy can be an option to prevent you from losing your home. Filing for bankruptcy of any type generally stops the foreclosure on your home. The automatic stay of bankruptcy goes into effect the moment you file a bankruptcy case which will stop most collection efforts against you. Your mortgage lender, the taxing authority, a homeowners association or whoever is foreclosing on you must cease their foreclosure actions immediately. You will then have some time to decide what to do.

Bankruptcy Petition

A bankruptcy petition stops the foreclosure of your home – it stops foreclosures on any type of physical property that you own. The lender has no option once a bankruptcy case is filed. The bankruptcy also allows you to restructure the amount you are behind and pay the past due amount over a period of up to 5 years. Even if you do not think you can afford your home, a bankruptcy may restructure the debts on your house to make it affordable.  

Foreclosure Defense

Defending your home against foreclosure may seem daunting, and in some cases it can be, but there are options to help you resolve mortgage debt problems and stop a foreclosure. At Fong Law Group, we know that your home is your most cherished asset and we want to help you keep. We have helped hundreds of hard working people just like you secure a forbearance agreement, loan modification, and more.

Contact Fong Law Group

When you are facing foreclosure it can feel as if your life is unscrambling. At Fong Law Group, it’s our goal to help people with their financial difficulties and provide professional legal advice for everyday living. Financial difficulties usually arise out of an unexpected crisis, such as loss of job, major medical emergency, divorce or business failure. We want to be available to our clients through these difficult times and help them move forward.

Working with Fong Law Group is your best chance at a successful defense against foreclosure. We negotiate with your mortgage lender and work to ensure your home is protected while we develop a plan that fits your needs. You won’t need to worry about lengthy phone calls to your lender and stubborn refusals to help with your mortgage problems.

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.

What is the Bankruptcy Means Test?

The Means Test is an income qualification tool used to determine if you are allowed to file a Chapter 7 bankruptcy or if you must file a Chapter 13 bankruptcy. Individuals with more than a certain income must file a Chapter 13 bankruptcy. A Means Test can determine who can file for Chapter 7 bankruptcy.

The Formula

The law now uses a standard mathematical formula to determine whether you can file for Chapter 7 — or, to put it in legal terms, whether filing for Chapter 7 would be an 'abuse' of the bankruptcy system. (Those who fail the means test are left with a Chapter 13 repayment plan as their only bankruptcy option.)

The bankruptcy means test is actually a two-part test and you only need to pass one of them to qualify for Chapter 7.

Test 1 - "Median Income"

This is a very simple test that compares your average household income for the past six calendar months to the median income for your state, if your income is below the median, you qualify for Chapter 7. If it is above the median, you must pass Test 2.

Test 2 - "Disposable Income"

This test deducts expenses from your income to determine how much you can pay your unsecured creditors over the next five years: for example (this example is just an example, each county and state is different);

• If you can pay at least $10,000 ($167 per month), you can't file for Chapter 7.
• If you can pay at least $6,000 ($100 per month) and that is at least 25% of what you currently owe your unsecured creditors, you can't file for Chapter 7.
• If your disposable income is less than $100 per month, you can file for Chapter 7.

Certain deductions are standard allowances based on the number of vehicles you operate, the number of people in your household, and the cost of living. Depending on which county you live in California, the amounts may change but the method of calculation will not.

In addition, to these standard deductions, you can also deduct the full amount of certain actual expenses such as mortgage and vehicle loan payments.

 

Are You Ready?

Contact Fong Law Group today for a free consultation at (626) 289-8299, and we will help determine which type of bankruptcy you qualify for.

Debt Relief and Bankruptcy

Are You Struggling and Stressed Because You Have Too Much Debt?

 

Perhaps you have missed a mortgage or car payment or simply cannot keep up with credit card bills. You may be receiving threatening collection calls or facing a lawsuit, and are afraid every time your phone rings. You are far from alone. Solid, hardworking people throughout the country have these same problems.

We live in times that we are offered credit everywhere, whether it is with credit cards, home loans, car loans, gas cards and store credit cards, making it very easy to get buried in debt. While we are opening up credit in all these places, sometimes bad things happen to good people, and we lose a job, are injured, or just over extend ourselves.

Many people have enough money to make monthly payments on these debts at the time they incur them. Sometimes, though, the random incidents in life get in the way. When you live paycheck to paycheck, one shift in your everyday life can have a severe impact on your finances. Suddenly, the bills you could just barely keep up with have become impossible burdens.

If you are in a situation where you are in need of debt relief, contact Fong Law Group. We have experience with all forms of debt, including:

• Credit Card Debt
• Foreclosures
• Student Loans
• Unpaid Taxes
• Vehicle Loans
• Wage Garnishment

Determining the Best Course of Action

We will be able to evaluate each form of debt that you have to determine the best course of action. You may need to file for Chapter 7 bankruptcy or Chapter 13 bankruptcy, but we are here to help you through this difficult time and get you back on the road to recovery and a fresh start.

If you are facing overwhelming debt and harassing telephone calls from debtors, contact Fong Law Group today for a free consultation at (626) 289-8299.