Fong Law Group

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.

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

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.

The Bankruptcy Process

The Bankruptcy Process

Deciding whether to file for bankruptcy is a major decision, which should not be taken lightly. It must be made with a clear understanding of the steps you will need to take, what will happen and the obligations you will have. At the Fong Law Group, we take great care to explain the bankruptcy process to each client we serve.

Your Lawyer Will Answer All Your Questions about Filing for Bankruptcy

The bankruptcy process will begin with a thorough analysis of your overall financial situation. We will help you determine whether you should file a Chapter 7 or Chapter 13 bankruptcy filing. While some aspects of the process are similar, the type of protection you choose will outline many steps that must be taken.

Key points to consider include:

Once you hire Fong Law Group to file your case and represent you, you can direct all collection calls to our office and gain some immediate relief from your stress.

If you have an immediate need to stop a foreclosure, wage garnishment or another severe action against you, we can move quickly to do so once we have the necessary documents and information.

It is critical that you are truthful in the financial information you provide, including disclosing all your debts, and that you attend all court hearings unless your attorney tells you otherwise.

Chapter 7 bankruptcy is often a fairly straightforward process that can be wrapped up within a few months, resulting in a discharge (forgiveness) of all unsecured debts. If you file Chapter 13, you will be required to meet all the terms of the repayment plan approved by the trustee — over a period of three to five years. Your bankruptcy attorney will remain responsive to your needs and questions every step of the way.

Fong Law Group Will Be by Your Side

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.

To schedule your free consultation, contact Fong Law Group today for a free consultation at (626) 289-8299.

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

How Bankruptcy Can Be Positive

How Bankruptcy Can Be Positive

Facing overwhelming debt and financial hardship can be a particularly stressful time in one’s life. As you try to navigate the coming days, weeks, and months, you will be faced with tough decisions, including whether or not you should consider filing for bankruptcy. While this can be an important time to consult an advisor such as a bankruptcy attorney, you may want to take this time to reflect on how bankruptcy can actually be positive, and provide you and your family with certain benefits. Here are just a few of the positive benefits of filing for bankruptcy, and how doing so can help get you out from under your crippling debt by giving you a fresh start.  

Dismissed Unsecured Debt

One way in which bankruptcy can help give you a fresh start is through the dismissal of any unsecured debt. When filing for bankruptcy, any debts you have which are not backed by an asset, such as a home or business, are discharged. These debts include debt acquired through medical and credit card bills.

Relief from Debt Collectors

When struggling with debt, encounters with creditors and collections agencies can become a daily reality. Getting back on one’s feet can be difficult enough without the stress of constant reminders of one’s debt. One of the benefits of filing for bankruptcy is that once you file, there is a stay period where creditors are not allowed to contact you and can be penalized if they do, which can give you a break from the harassment.

Protection of Certain Property

Filing for bankruptcy in a timely manner can actually help to protect you and your family by giving you a chance of keeping your home. Depending of the jurisdiction in which you live, when you file for bankruptcy, and the value of your home’s equity, your home could be protected from liquidation by filing for bankruptcy.

While filing for bankruptcy can be a scary, overwhelming process, for many individuals, doing so can be a positive experience as well. Filing for bankruptcy allows you to get a fresh start financially, and can help to distance yourself from the stress and anxiety of your previous financial struggles. Call Fong Law Group at (626) 289-8299 and talk to an attorney today.

How to Be Smart about an Inheritance

“If you were to receive a sizable inheritance, what should you do with it? This money could help you achieve some of your important financial goals , so you’ll want to think carefully about your choices.”

While there’s no one way that is right for everyone, there are some basic considerations about receiving a large inheritance that apply to almost anyone. According to the article “What should you do with an inheritance?” from The Rogersville Review, the size of the inheritance could make it possible for you to move up your retirement date. Just be mindful that it is very easy to spend large amounts of money very quickly, especially if this is a new experience.

Here are some ways to consider using an inheritance:

Get rid of your debt load. Car loans, credit cards and most school loans are at higher rates than you can get from any investments. Therefore, it makes sense to use at least some of your inheritance to get rid of this expensive debt. Some people believe that it’s best to not have a mortgage, since now there are limits to deductions. You may not want to pay off a mortgage, since you’ll have less flexibility if you need cash.

Contribute more to retirement accounts. If the inheritance gives you a little breathing room in your regular budget, it’s a good idea to increase your contributions to an employer-sponsored 401(k) or another plan, as well as to your personal IRA. Remember that this money grows tax-free and it is possible you’ll need it.

Start college funding. If your financial plan includes helping children or even grandchildren attend college, you could use an inheritance to open a 529 account. This gives you tax benefits and considerable flexibility in distributing the money. Every state has a 529 account program and it’s easy to open an account.

Create or reinforce an emergency fund. A recent survey found that most Americans don’t have emergency funds. Therefore, a bill for more than $400 would be difficult for them to pay. Use your inheritance to create an emergency fund, which should have six to 12 months’ worth of living expenses. Put the money into a liquid, low-risk account, so that you can access it easily if necessary. This way you don’t tap into long-term funds.

Review your estate plan. Anytime you have a large life event, like the death of a parent or an inheritance, it’s time to review your estate plan. Depending upon the size of the estate, there may be some tax liabilities you’ll need to deal with. You may also want to set some of the assets aside in trust for children or grandchildren. Your estate planning attorney will be able to provide you with experienced counsel on the use of the inheritance for you and future generations.

Reference: The Rogersville Review (March 21, 2019) “What should you do with an inheritance?”

Due Diligence Needed, If Retirement Depends on Inheritance, Selling Business

“I am 60 years old, divorced and have never taken an active interest in my finances. I’ve never worried about saving for retirement. I felt that when I retired, I’d be able to sell my business and that along with the inheritance I would receive from my parents, I would be in good shape.”

The first sentence in this article from Hometown Life, “Playing off charge card debt a major priority,” tells the entire story: “I…have never taken an active interest in my finances.” The person never had his business evaluated by a professional and learned at age 60 that his business had no resale value. In addition, he learned that his parents were supporting a sister and any inheritance he was anticipating would not be enough to live on.

Making matters worse, he has more than $80,000 in credit card debt on various cards, at interest rates between 18% and 21%. With next to no equity in his home and a home equity loan and a mortgage, this person has only one asset: an IRA worth around $100,000.

At some point in their lives, most people realize that they must be active participants in their financial lives. They need a budget to contain spending and a savings plan, so they can enjoy their retirement and control of their credit card debt. It sounds like this man just got a wake-up call.

He wonders how to resolve his credit card debt, but it seems there are a number of other issues that need to be addressed.

First, he should pay off his credit card debt. At 18% to 21%, there is no investment he could make that would come near that rate. One way to do this, is to increase his monthly payments. It may take many years to knock down such a large debt, so another option is to use his IRA to pay off the money immediately.

Equally important is for him to commit to use the money he would have otherwise used to pay off credit card debt and invest that into a retirement fund. It doesn’t matter if he uses an IRA, a SEP or a Roth, but he needs to be disciplined and start putting money away for his retirement.

Potential inheritances are troublesome for people who count their chickens before they hatch. Until the inheritance is safely in your own bank account, you cannot count on it. In a time where living expenses are high and people are living longer, fewer and fewer people are expecting to receive inheritances. Basing a lifestyle around an expected inheritance, can only lead to financial disaster.

Preparing for retirement and taking an active role in managing your finances, is a life-long task and part of our responsibility as adults. Another responsibility is to have an estate plan in place, so even people who die in debt, can be assured that what assets they do have will go to their heirs.

Reference: Hometown Life (March 3, 2019) “Playing off charge card debt a major priority”

How to Deal With Student Loan Debt as You Age

Sadly, learning how to deal with this debt is now a fact of life for many seniors heading into retirement.

According to a study by the Consumer Financial Protection Bureau, the number of older borrowers increased by at least 20 percent between 2012 and 2017. Some of these borrowers were borrowing for themselves, but the majority were borrowing for others. The study found that 73 percent of student loan borrowers age 60 and older borrowed for a child’s or grandchild’s education.

Before you co-sign a student loan for a child or grandchild, you need to understand your obligations. The co-signer not only vouches for the loan recipient's ability to pay back the loan, but is also personally responsible for repaying the loan if the recipient cannot pay. Because of this, you need to carefully consider the risk before taking on this responsibility. In some circumstances, it is possible to obtain a co-signer release from a loan after the loan recipient has made a few on-time payments. If you are a co-signer on a loan that has not defaulted, check with the lender about getting a release. You can also ask the lender for payment information to make sure the borrower is keeping up with the payments. 

If the borrower defaulted and you are obliged to pay the loan back or you are the borrower yourself, you will need to manage your finances. Having to pay back student loan debt can lead to working longer, fewer retirement savings, delayed health care, and credit issues, among other things. If you are struggling to make payments, you can request a new repayment plan that has lower monthly payments. With a federal student loan, you have the option to make payments based on your income. To request an "income-driven repayment plan," go to: https://studentloans.gov/myDirectLoan/index.action. 

Defaulting on a student loan may affect your Social Security benefits. If you have a private student loan, a debt collector cannot garnish your Social Security benefits to pay back the loan. In the case of federal student loans, the government can take 15 percent of your Social Security check as long as the remaining balance doesn't drop below $750. There is no statute of limitations on student loan debt, so it doesn't matter how long ago the debt occurred. If you do default on a federal loan, contact the U.S. Department of Education right away to see if you can arrange a new repayment plan. 

If you die still owing debt on a federal student loan, the debt will be discharged and your spouse or other heirs will not have to repay the loan. If you have a private student loan, whether your spouse or estate will be liable to pay back the debt will depend on the individual loan. You should check with your lender to find out the discharge policies. Depending on the loan, the lender may try to collect from the estate or any co-signers. In a community property state (where all assets acquired during a marriage are considered owned by both spouses equally), the spouse may be liable for the debt (some community property states have exceptions for student loan debt). 

A Note to Younger People: Heed the Voice of Experience

“If you could, what financial advice would you give your younger self?”

We like to think that we live without regrets, but it’s not always easy to do, especially when it comes to planning for retirement, says The Washington Post in “The top regrets of retirees.” A study looking at retirees found that many, and especially women, admitted that they had made mistakes in their retirement planning. The report from Global Atlantic was based on data from more than 4,200 retirees and pre-retirees in America. The company wanted to learn how expectations for retirement costs lined up with reality.

The expectations often did not.

The risk of running out of money is real, said the report, noting that 39% of retirees said they had planning regrets. Here are the top reasons for regret:

They found themselves relying too much on Social Security for income.

They did not pay down debt before retiring. Many people today are retiring with a mortgage. People used to pay off their mortgage before retiring, but it’s less and less common now.

They didn’t save enough. Most people didn’t start saving for retirement, until they turned 31. Missing almost a decade in saving can make a huge difference over time. Let’s say an employee puts away $50 every time she gets a paycheck—twice a month—and puts the money into an account with a 6% annualized return. If she started saving at age 23, by retirement age she’d have $227,150 in that account. If she waited to start saving until age 31, the account would be worth $128,578—$88,572 less. If she was able to save $100 per paycheck, by retirement, she’d have $434,299 versus $257,156.

The power of time and compounding makes a huge difference. Compounding is the process through which an asset’s earnings are reinvested to earn additional earnings over time. The more time your assets have to grow, the most compounded growth can occur.

Age 31 seems relatively young to start thinking about retirement, but by waiting that long, workers are missing out on almost a decade of savings, asset accumulation and the associated potential of compound returns.

The survey also revealed that women are more likely than men to have retirement planning regrets. How’s this for a difference: 62% of women had retirement regrets, versus 47% of men. The women also noted that once they realized their mistakes, more women than men adjusted their lifestyles to increase savings, by cutting expenses, like traveling or eating out.

If you have retirement regrets, your best course of action is to do the best you can now, without worrying about what you didn’t know in the past.

Reference: The Washington Post (Dec. 10, 2018) “The top regrets of retirees.”