Fong Law Group

Student Loan Programs: 4 Questions to Ask Before Refinancing Your Student Loan

Majority of student loan lenders offer some of the best loans you could find. The interest is usually fairly low, and the loans are pretty simple to get. To their credit, student loan lenders are some of the fairest in the country. 

Student Loan Lenders:

• Allow you to go into forbearance when your financial situation becomes unmanageable;
• They will work out fair payment plans with you; and 
• Their interest rates are manageable if you're not experiencing financial difficulty

Those student loans, on the other hand, will not go away no matter what. Even if you are unable to obtain a good job as a result of the education they provided, you must repay your student debts. They'll continue to accrue interest even if they're in forbearance. Student loan refinancing and debt consolidation organizations, on the other hand, are finally giving borrowers new hope.

By asking the appropriate questions, you may find the right student loan option for your debt consolidation. We have put together some questions you should ask when considering the right student loan program.

First and foremost, you should inquire as to what you would need to perform in order to be qualified for loan forgiveness. You can get some or all of your student debt forgiven if you work in specific industries, such as education, public service, or the military. Consult your agent to determine if a vocation you're interested in falls into one of these categories, and if so, you may be eligible for forgiveness. A government program is also available.

Do they accept payments on a biweekly basis? It's extremely uncommon that you'll come across a company that does not accept automatic bill payment. In addition, most lenders will give you a.25 percent interest rate reduction if you sign up for automated bill pay. However, you will not be able to make bi-weekly payments with everyone. Some companies will allow you set up automatic payments once a month and accept a check or money order at any time during the month. However, keep in mind the following:

1. Bi-weekly payments equal out to about 26 more payments a year,
2. You're paying the same amount of money, but making more frequent payments, so you pay less interest and you're shaving off years of repayment time

What are your financial goals in the long run? Before you sign up with a company, be sure you understand exactly what you'll be paying each month and for how long. You may decide that you don't want to pay off your student loan debt for another ten years, or that your payments are too large to manage due to upcoming personal commitments.

Remember that interest rates can add up quickly, so listen to your agent's advice but don't let him or her pick your answer for you. Before you choose the best option for you, make sure you consider all of your options for changing payment plans, refinancing, and pre-paying.

Are you able to refinance your home? If you've gained a better job or have a more manageable budget, many firms may allow you to refinance rather than consolidate. Refinancing your loans can save you over $11,000, so it's the best option for many people if they qualify.

If you find you are unable to refinance your loans due to job loss, an injury or any other reason, call Fong Law Group at (626) 289-8299 for a free consolidation. You can depend on Fong Law Group to provide clear information on bankruptcy law, each step you must complete, and how to best approach and manage life after bankruptcy.

Three Steps to Improving Your Credit Report after Going through Financial Debt

There are three procedures to follow while trying to get your credit report back on track. Because many debt relief organizations are just not competent, it is critical to contact a Fong Law Group attorney to handle this for you. Because effective debt settlement may also include legal expertise and experience, having a bankruptcy attorney on your side increases your chances of a successful resolution.

Stronger credit management will require you to:

1. Refute incorrect information. If you uncover anything on your credit report that you believe is incorrect, you should dispute it with the credit reporting companies directly. They must either verify disputed information or remove it from your credit report within a reasonable amount of time.
2. Work out a payment plan for the remaining debt. You'll talk to your creditors and try to come up with a plan to pay off a portion of your debt in one lump sum or over time with a payment plan. You should also request that any true negative information be deleted at this time. If the creditors are resistant, having an attorney there during the negotiation process is extremely beneficial; the lawyer may be able to uncover some faults on the creditors' end that you may use as a "bargaining chip."
3. Establish a good credit history. There is no legal way to improve your credit by eliminating negative information that you couldn't resolve with your creditor. It's critical to start building good credit after you've settled your present debt. You must demonstrate that you have the current ability to pay bills and that you have paid other accounts on time since your previous issues.

Remember, the credit agencies actually want to lend you money. You just need to show them that you are capable of paying them back.

At Fong Law Group, our experience allows us to provide advice to help you protect your assets, avoid wage garnishments, etc.  Fong Law Group will give you insight into the special provisions of the California bankruptcy code, ensuring your decisions have the minimal impact on your financial future. We will evaluate your circumstances, and help you choose the best option for your unique situation.

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.

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.

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.

Wage Garnishment

What Is Wage Garnishment?

Wage garnishment is when you owe a debtor and you have not paid your bill, so they go to the courts to sue and place a wage garnishment on your wages to collect their money.

How Does a Wage Garnishment Work?

Most creditors cannot garnish your wages without first suing you in court and getting a money judgment. Upon suing you, and getting a judgment, the creditor can then get an order to garnish your wages from the court. (There are a few exceptions, for example, for student loans, taxes, and child support.)The sheriff then forwards the order to your employer, who then holds back a portion of your wages each pay period and sends that amount to the creditor. There is however limits to how much the employer can garnish from your paycheck each month. And you may be able to protect even more using exemptions.

Preventing Wage Garnishment

Hiring a Fong Law Group attorney does not consequentially trigger an automatic stay, nor does it stop a creditor from garnishing your wages. Once you receive notice that your wages are about to be garnished, you can contact an attorney at Fong Law Group and we can assist you in filing for bankruptcy quickly, before your wages are actually garnished. Filing quickly, with the assistance of an attorney, will put your automatic stay in place before your creditors get a chance to take your wages.

Hiring a Fong Law Group Attorney

When you hire Fong Law Group to file bankruptcy for you, we may choose to send a letter of representation to your creditors, identifying us as your attorney. While such a letter does not automatically stop garnishment proceedings, your creditors may choose to stop garnishment because of your pending bankruptcy case since they know garnishment must stop once your case is filed.

Voluntary Halt to Garnishment

When your creditor receives a letter of representation from Fong Law Group, particularly if the letter states that you are about to file bankruptcy, the creditor may decide against pursuing a garnishment order since it more than likely may end up costing him/her more than it is worth. By the time the creditor considers paying court costs and attorney fees, the creditor may decide the hassle and cost of garnishment is too much when balanced against the low chance that the creditor will get paid. However, this is the creditor’s choice, and the only thing that guarantees a halt to garnishment is an automatic stay from a bankruptcy filing.

If you are facing a wage garnishment, contact Fong Law Group today for a free consultation at (626) 289-8299.

Bankruptcy – What Type of Bankruptcy is Right for You?

Main Types of Bankruptcy

Bankruptcies fall into basically two types of categories – discharge of debts with no payments (chapter 7) and repayment plans for different types of debts (chapter 13).

What is a Bankruptcy and How Does it Work?

Bankruptcy is conducted in the federal courts. Bankruptcy is effectively a lawsuit that is filed against creditors. In order to file a bankruptcy, you must complete documents for filing with the court, you must complete a credit counseling course, and you must provide financial information for the court. After a case is filed, you will be required to meet with a trustee about 30 days after your case is filed. The process is different for chapter 7 and 13 cases. The bankruptcy process should be completed for a chapter 7 in approximately 4 to 6 months from the date of filing. A chapter 13 case goes from 3 to 5 years.

What Type of Bankruptcy is Right for You?

What type of bankruptcy is best for you, and that you qualify for depends on a variety of factors that include income, expenses, and types of debts, along with long term goals and restrictions in various chapters. For instance, if you own your own home, and your home has less than $600,000 equity, then a chapter 7 is not for you. If you principally have credit card or medical bills and are current on your house and car payments, then chapter 7 may be the best solution. In order to accurately assess the best bankruptcy chapter for your needs, you should consider seeing a board certified Bankruptcy attorney at Fong Law Group.

Bankruptcy should be someone’s “last resort”. Prior to filing a bankruptcy, you should consider debt negotiation with your creditors. At Fong Law Group, we assist people in debt negotiation. We also assist people with loan modifications through bankruptcy chapter 13.

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.

Bankruptcy Basics: 3 Types of illegal Asset Transfers during a Bankruptcy

Bankruptcy Basics: 3 Types of illegal Asset Transfers during a Bankruptcy

The desire to protect your assets from creditors is natural, and it’s the main reason debtors file bankruptcy. But there are certain types of asset transfers that are simply illegal when done right before filing bankruptcy. Let’s take a look at a few:

1. Transferring your property into someone else’s name. Some debtors unwisely transfer their assets into the name of a relative or friend because they don’t want to lose the asset in bankruptcy. However, such actions are illegal, and in many cases it’s unnecessary. If you transfer property into someone else’s name, especially in the year before your bankruptcy filing, the bankruptcy trustee may attempt to reclaim the property and deny your bankruptcy discharge.

2. Selling your asset for less than its market value. If you sell an asset for significantly less than its market value, this may be considered an illegal transfer by the bankruptcy trustee, especially if the property is not exempt in bankruptcy. For example, selling your used vehicle to your son for 50% of its value may be considered an illegal transfer by the bankruptcy trustee depending on the asset’s value, the timing of the sell, and whether or not the vehicle is considered exempt property.

3. Paying off family loans.The bankruptcy trustee will disallow any payments you’ve made to family members within 90 days before filing bankruptcy. These types of preferences are disallowed in bankruptcy because it leaves other creditors at a disadvantage. If you paid off a family loan right before filing bankruptcy, depending on the amount, the trustee may demand that the family member return the cash to the bankruptcy testate.

If you want to transfer or sell assets before filing bankruptcy, talk to an attorney at Fong Law Group at (626) 289-8299 to find out if you can do so without negative consequences.

What Type of Bankruptcy Do I Qualify For?

What Type of Bankruptcy Do I Qualify For?

There are two main types of bankruptcies for consumers:

Chapter 7 allows you to eliminate most unsecured debts in a matter of months in return for giving up all "non-exempt" property -- if you have any.

Most people, who file for Chapter 7, have no available non-exempt property or equity. Whatever they still own by the time they file is either protected by exemption laws, or pledged to a secured creditor as collateral for a debt and therefore not available to pay off unsecured creditors.

These are known as "no asset" bankruptcies, and most Chapter 7s are of this type.

Chapter 13 takes 3 to 5 years. Instead of giving up property, you repay a portion of your debts and live within a strict budget that is monitored closely by the bankruptcy court trustee. If you can't make the required monthly payments, your Chapter 13 bankruptcy fails and your debts will remain (unless you convert to a Chapter 7 bankruptcy).

Chapter 13 is commonly used by people who are behind on secured debt payments (e.g., mortgages) and want to propose a Chapter 13 plan to catch up on these payments over time.

Under the new bankruptcy law, which took effect in October 2005, a mathematical formula called the "means test" establishes an initial determination of the kind of bankruptcy you qualify for: Chapter 7, Chapter 13, or either. This formula takes into account:

• your monthly income
• the amount and kind of your debts, and
• other aspects of your financial situation

If your annual income is less than the California median income for your household size, then you can file for Chapter 7 or Chapter 13, (assuming you meet other qualifications). If your income is higher than the state median, you must first complete a long list of expense deductions to estimate what your 'disposable income' will be over the next five years. The result of this calculation determines whether you can file for Chapter 7, or are left with Chapter 13 as your only option.

Take the Bankruptcy Means Test to see if you qualify.

Contact Fong Law Group today for a free consultation at (626) 289-8299

Don’t Fall Prey to These Estate Planning Myths 不要成為這些資產規劃謠傳的犧牲品 (中英對照)

“Estate planning myths can make an already complex process, even more complicated.”

Most people think that wills are a “one and done” sort of document. However, tax laws change and so do family dynamics. People who have minor children, really need to make sure that their will includes the naming of a guardian, as well as a trustee to manage assets on the children’s behalf. Just because you have a will, advises the Cleveland Jewish News in the article “Estate planning myths common, but debunkable,” doesn’t mean your work is done.

One common myth is that a trust is completely creditor protected. While there are some trusts that achieve this goal, there are many that don’t.

Another myth is that once an estate plan is completed, there’s no need to revisit or make changes.

Perhaps the biggest myth around estate plans, is that they are only needed by wealthy people. Actually, everyone needs a will.

People chat with their friends and neighbors and pick up snippets of information, which is usually incorrect. As with any kind of story, once a piece of information has moved through a few different people, it becomes confusing, even if it started out accurate.

Unless it comes from an estate planning attorney, don’t get any legal advice at a neighborhood or family gathering. The results can be disastrous.

If you think having a trust alone is enough to prevent your heirs from having to pay any taxes, your kids will be in for a big and expensive mistake.

If you don’t set up guardianship for your minor children, then the court will appoint a guardian. It’s entirely possible that it may be a person you would never have wanted to raise your children. If a separate financial trustee is not named, there won’t be any checks and balances on how the money left for your children is spent.

If you don’t have an estate plan in place, and especially if your family includes minor children, make an appointment to speak with an estate planning attorney soon. They’ll talk with you about your family, your hopes for what would happen if you should pass and create a series of legal documents that will protect you, while you are living (like a power of attorney and a medical power of attorney) and after you have passed.

Don’t let the myths keep you from planning for the future and protecting your family.

Reference: Cleveland Jewish News (Sep. 20, 2018) “Estate planning myths common, but debunkable”

“資產規劃謠言可以使一個已經很複雜的過程更複雜。”

大多數人認為遺囑是一種“一勞永逸”的文件。但是，稅法改變，家庭改變。有未成年子女的人，確實需要確保他們的遺囑包括監護人的命名，以及代表子女管理資產的受託人。在Cleveland Jewish News的文章中“Estate planning myths common, but debunkable,” 說僅僅因為你有遺囑，並不意味著你的工作已經完成。

一個常見的誤解是信託完全可避免債權人的追討。雖然有一些信託是可以達到這個目標，但有許多信託並不可以。

另一個謠言是，一旦資產計劃完成，就沒有必要重新審視或做出改變。

也許關於資產計劃的最大謠傳是，只有富人才需要。實際上，每個人都需要。

人們與他們的朋友和鄰居聊天，並獲得零碎信息，這通常是不正確的。跟其他故事一樣，一旦信息通過不同的人傳開，即使開始是準確，後來也會變得混亂。

除非是來自資產規劃律師，否則不要在鄰里或家庭聚會上接納任何法律建議。結果可會是嚴重的。

如果你認為只有信託便可以防止你的繼承人支付任何稅款，那麼你的子女將會遇到一個重大而又昂貴的錯誤。

如果您沒有為未成年子女設立監護權，那麼法院將指定一名監護人。他完全有可能是一個你永遠不想撫養你子女的人。如果未有指定財務受託人，則不會對您的子女留下的資金進行任何制衡。

如果您沒有資產計劃，特別是如果您的家中有未成年子女，請盡快與資產規劃律師聯繫。他們會和你談談你的家庭，你的意願及制定一系列法律文件(如授權書和醫療授權書）在你在世時及去世後去保護你。

不要讓謠傳讓你無法規劃未來並保護你的家人。

參考 : Cleveland Jewish News (Sep. 20, 2018) “Estate planning myths common, but debunkable”