Fong Law Group

How Much Long-Term Care Insurance Should You Purchase?

Long-term care insurance helps you prepare for financial costs associated with aging, such as nursing home care, assisted living, or in-home care. Yet long-term care insurance policies vary widely in terms of the amount of coverage and how long the protection lasts.

The Average Costs of Care

The 2021 Genworth cost of long-term care survey provides national median monthly costs for the following:

• Nursing home care = $9,034 (private room); $7,908 (semi-private room)
• Adult day health care = $1,690
• Assisted living = $4,500
• Homemaker services = $4,957
• Home health assistance = $5,148

Whether you have a health condition that you know will require care in a skilled nursing facility or prefer to prepare for unexpected medical events, you may consider purchasing a certain amount of long-term care insurance to account for future care.

Evaluate which services you expect to need. Although many individuals need nursing home care, others can avoid nursing home costs by combining assisted living services with in-home care or day health services.

How to Calculate Your Monthly Benefit

Most policies provide between $2,000 and $10,000 of funds per month. To estimate how much long-term care insurance you will need:

1. Review how much you can expect to spend on long-term care.

2. Subtract the cost of services from the amount of money you can budget toward your long-term care expenses; the remainder is the amount you need long-term care insurance to cover.

Suppose you have a monthly income of $2,500 and plan to move into an assisted living facility that costs $4,500 per month. In that case, you will need a minimum of $2,000 per month in long-term care insurance to cover the cost of assisted living.

In addition to determining how much coverage you need each month, think about how long you want your plan to last. Long-term care insurance that lasts longer can be relatively more expensive, yet it provides increased protection.

The Department of Health and Human Services states that most people need long-term care by age 65. The majority of people need care for two years, but 20 percent require care for longer than five years. Most people should obtain at least two years of coverage and contemplate purchasing additional coverage.

Medicaid Planning

As you plan for your future, consider purchasing long-term care insurance that protects you for five years if you intend to apply for Medicaid. Since the Medicaid lookback period is five years, you may transfer your assets to your family and begin to spend down your assets so that you can qualify for Medicaid after your five-year coverage ends. After five years on private insurance, you may be able to transition to Medicaid.

The amount of long-term care insurance you buy should fit your unique circumstances. 

Speak with your attorney to learn more about preparing for your future with long-term care insurance.

Requiring Adult Children to Pay for Aging Parents' Care

Did you know you could be responsible for your parents' unpaid bills? More than half of all states currently have laws making adult children financially responsible for their parents, including their long-term care costs. However, these laws are rarely enforced.

Filial responsibility laws obligate adult children to provide necessities like food, clothing, housing, and medical attention for their parents who cannot afford to take care of themselves. States may allow a civil court action to obtain financial support or cost recovery, impose criminal penalties on children who do not support their parents, or allow both civil and criminal actions. 

Generally, most states with such laws do not require children to provide care if they lack the ability to pay. States also vary on what factors they consider when determining whether an adult child is able to pay. Children may not be required to support their parents if the parents abandoned them or did not support them.

With regard to long-term care, most low-income parents qualify for Medicaid, making it unnecessary for a nursing home to pursue the resident's children for payment. When the Deficit Reduction Act of 2005 made it more difficult to qualify for Medicaid, experts predicted a wave of lawsuits by nursing homes under state filial responsibility statutes, but that has not happened. However, in 2012 a court in Pennsylvania ruled that a son was responsible for his mother’s $93,000 nursing home bill under the state’s filial responsibility law. 

While in most instances adult children are not held responsible for their parents’ long-term care bills under these laws, they may have to pay a nursing home in other circumstances. In some cases, children have been held liable if their parent transferred assets to them, making the parent ineligible for Medicaid. Additionally, there are cases in which children who signed an agreement affirming that they would assist their parent in paying for a nursing home have been sued for breach of contract by the nursing home. After a parent dies, Medicaid estate recovery allows the state to recoup Medicaid benefits from the parent’s estate, reducing the amount the children can inherit. 

If your parent needs long-term care, be sure to consult with your attorney to make certain you are not creating a situation in which you might be liable for your parent’s care. 

Should You Prepare a Medicaid Application Yourself?

Navigating the Medicaid application process can be complicated, especially if you are applying for long-term care benefits. Hiring an attorney to help you through the process can be extremely helpful. 

Whether you should prepare and file a Medicaid application by yourself or should hire help depends on answers to the following questions:

• How old is the applicant?
• How complicated is the applicant's financial situation?
• Is the individual applying for community or nursing home benefits?
• How much time do you have available?
• How organized are you?

Medicaid is the health care program for individuals who do not have another form of insurance or whose insurance does not cover what they need, such as long-term care. Many people rely on Medicaid for assistance in paying for care at home or in nursing homes.

For people under age 65 and not in need of long-term care, eligibility is based largely on income and the application process is not very complicated. Most people can apply on their own without assistance.  

Matters get a bit more complicated for applicants age 65 and above and especially for those of any age who need nursing home or other long-term care coverage. In these cases, availing yourself of the services of an attorney is practically essential.

Medicaid applicants over age 65 are limited to $2,000 in countable assets (in most states). It's possible to transfer assets over this amount in order to become eligible, but seniors need to be careful in doing so because they may need the funds in the future and if they move to a nursing home, the transfer could make them ineligible for benefits for five years. Professional advice is also crucial because there is a confusing array of different Medicaid programs that may be of assistance in providing home care, each with its own rules.

All of that said, the application process itself is not as complicated for community benefits (care that takes place outside of an institutional setting, such as in the beneficiary’s home). In short, those over 65 may need to consult with an elder law attorney for planning purposes, but they or their families may be able to prepare and submit the Medicaid application themselves.

But submitting an application for nursing home benefits without an attorney's help is not a good idea. This is because Medicaid officials subject such applications to enhanced scrutiny, requiring up to five years of financial records and documentation of every fact. Any unexplained expense may be treated as a disqualifying transfer of assets, and many planning steps -- such as trusts, transfers to family members, and family care agreements -- are viewed as suspect unless properly explained. Finally, the process generally takes several months as Medicaid keeps asking questions and demanding further documentation for the answers provided.

Many elder law attorneys offer assistance with Medicaid applications as part of their services. This has several advantages, including expert advice on how best to qualify for benefits as early as possible, experience in dealing with the more difficult eligibility questions that often arise, and a high level of service through a long, grueling process. The one drawback of using an attorney rather than a lay service is that the fee is typically substantially higher. However, given the high cost of nursing homes, if the law firm's assistance can accelerate eligibility by even one month that will generally cover the fee. In addition, the payments to the attorney are generally with funds that would otherwise be paid to the nursing home -- in other words, the funds will have to be spent in any event, whether for nursing home or for legal fees.

Is Bankruptcy Considered Financial Hardship?

There is no doubt that bankruptcy can be difficult for people. No one wants to declare being bankrupt unless and until they have no way out of the debts. So, if you are asking whether or not bankruptcy is considered as a financial hardship, then the answer is - definitely, YES! A bankruptcy can cause a very lasting impact on the creditworthiness and life as well, to ensure that you are rectifying the situation and getting back to normal, you have to restructure your debts and cut back on the costs. To do that you will need the best bankruptcy attorneys by your side.

We, at Fong Law Group, can ensure that you are getting the best legal help to go through the bankruptcy procedure and all the legal proceedings and meetings efficiently. We offer the best legal services related to bankruptcy in Monterey Park, California and in the surrounding areas.

What is financial hardship?

Financial hardship means when you find it difficult to repay your debts and loans. When you are in extreme financial hardship that you couldn't pay off your bills and debts or the loans, you apply for bankruptcy. Financial hardships can be considered when you are:

• Unable to pay of your bills
• Unable to repay the debts that you have
• Unable to pay off your loans to the creditors

Hence, a bankruptcy is considered a financial hardship. Declaring bankruptcy is considered as the last resort to get out of the financial hardships that you are facing. Many are relieved when they finally take the leap, and decide to file bankruptcy. It means the creditors stop calling, you can finally answer your phone again. It means a new start, and less stress worrying how you will be able to pay all your bills. But the main question is when can you file the bankruptcy?

 

When to declare bankruptcy?

Now that you know what financial hardship is, it is time for you to know when you can declare bankruptcy to start afresh. There are times when you can hit the rock bottom. Your liabilities i.e. the debts and loans can exceed your assets or income. This can be the worst thing and you need to get out of this situation immediately. The best way to get out of this situation is by filing bankruptcy.There can be different reasons to file bankruptcy. If your creditors are filing lawsuit against you or you are not able to pay off the debts properly, consulting with a bankruptcy lawyer is the best way to get out of this. Understanding bankruptcy and when to file it or how to file it can be quite difficult at times.

Moreover bankruptcy and financial hardship has a direct connection that an experienced lawyer can help you to know in a better way. So, look for the best lawyers or attorney in your area. Fong Law Group is here to help you in such situations when you are confused about bankruptcy. What to do? When to file bankruptcy? How to file bankruptcy? You can get all the answers straight away from the best lawyers of Monterey Park California

Call Fong Law Group at (626) 289-8299 for a FREE consultation, 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.

Is Debt Relief Better Than Bankruptcy?

One of the most common dilemmas that people often face is - debt relief vs. bankruptcy. Which one is better to choose? Both of these methods help you to come out of your outstanding debts that you are unable to pay off. When it comes to choosing one of these two methods, you need to consider a lot of different aspects related to your financial situations, debts remaining and more. A professional law firm or an experienced attorney can help you to choose the right method.

We, at Fong Law Group, can help you with your concerns related to debt relief and bankruptcy. We are located in Monterey Park, California and its surrounding areas. To learn more about bankruptcy vs. debt relief and how we can we help you, read on.

Debt Relief vs. Bankruptcy

Debt relief or debt settlement is about negotiation of the debt. In this case, you have to go through a debt management program where you will have a representative. You as well as your representative will attempt to make your creditors accept a certain portion of the total outstanding debt as the full payment. This is a kind of settlement which is done when you are unable to pay off your debts due to financial crisis.

On the other hand, there are mainly two different types of bankruptcies - a Chapter 7 bankruptcy and a Chapter 13 bankruptcy. The Chapter 7 bankruptcy is also called straight bankruptcy where you have to file for a complete bankruptcy petition showing your loan documents, bank statements and credit card statements. The Chapter 13 bankruptcy is more like a wage earner's plan to manage your debt. In this case, you have to pay a certain amount of money to the trustee on monthly basis which will be distributed to the creditors based on priorities.

 

Which one is better?

When it comes to bankruptcy vs. debt relief, both have the same goal, to relief the person from their mounding debt. When you are facing financial crisis and unable to pay off your debts, choosing the right one is important according to your needs. Both of them have certain advantages as well as disadvantages.

Pros of debt settlement

• You get to settle the debt with a certain amount of money as full payment
• There will be no add-on fee after the debt is settled
• State will regulate the entire process of debt settlement
• You can avoid public records of being into bankruptcy

Pros of filing bankruptcy

• You will get a clean pass to make a fresh start with a Chapter 7 bankruptcy
• You will have to pay a small amount of money per month to the creditors with Chapter 13 bankruptcy, but is ideal if you own and want to keep your house, or are still paying on a vehicle
• This can prevent your utilities from getting shut off due to nonpayment
• Chapter 13 Bankruptcy helps you in renegotiating your secured debts like car loans, house loans, etc.

Want to get the best advice about which one to choose between debt relief and bankruptcy? You need the best law firm in Monterey Park California, Fong Law Group.

Call Fong Law Group at (626) 289-8299 for a FREE consultation, 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 Type Of Debt Cannot Be Discharged Through Bankruptcy?

Bankruptcy is one of the ways to declare your financial hardships. This can help people to get an opportunity to start afresh from scratch as most debts are often discharged when you file bankruptcy. There are two different types of bankruptcy - Chapter 7 bankruptcy and Chapter 13 bankruptcy. While in both the cases, the court can discharge some of the debts, there are certain debts that cannot be discharged. Discharging your debts means you may not have to repay those debts off and the collectors cannot attempt to collect those debts from you.

With a proper bankruptcy case and an efficient lawyer, you can fight for discharging most of your debts. For that, our Fong Law Group attorneys can help you in the best possible way. If you are located in Monterey Park, California or in surrounding areas, then we can be really helpful to you.

Debts that cannot be discharged

While there are two types of bankruptcy that you can file to get rid of the debts and loans, there are certain debts that cannot be discharged. Regardless of whether you have filed for a Chapter 7 bankruptcy or a Chapter 13 bankruptcy, there are certain debts that you cannot put behind for moving on in your life, however these debts can be restructured. Some of the types of debt in bankruptcy that are not eligible for discharge are:

• The payment for supporting your child or payment of alimony
• The debts for any personal injury or death caused by the mistake of the debtor
• The payments or debts for intentionally causing harm or injuries to a property or a person
• Some of the types of taxes (unpaid)
• Any penalties or fines that you own to any of the government agencies
• Loans you have taken for studies (student loans)
• Debts for any cooperative or condo housing fees
• Unpaid fees of the attorneys for the support and custody of your child
• A house loan or car loan

 

Can the court revoke the discharges?

When it comes to taxes, the court can discharge some of the unpaid federal and state taxes if they are more than seven years old. At the same time, some of the discharges can also be revoked by the court under some circumstances. If a trustee or a creditor takes the matter to the court with some evidences or proofs to show why the discharge should be revoked, the court can take action and determine whether that should be done. For this, you need to have the best in class bankruptcy attorney or lawyer who can help you in building a stronger case with all the important documents provided to the court.

In such cases, it will not be easy to revoke any discharges. But you will have to take care of all the debts that are not included in the discharged list by the court through your bankruptcy filing. To ensure that you are getting the best support and guidance, you have to choose the best law firm; Fong Law Group in Monterey Park, California is here to help you.

Call Fong Law Group at (626) 289-8299 for a FREE consultation, 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.

Should I File for Bankruptcy FAQ

Bankruptcy can give you relief from a financial crisis. But you cannot decide on filing bankruptcy without adequate information. Before filing bankruptcy in California, you might want to know the options, discharges, and impact on your financial life. In the following, we will address all your queries.

Should I File Under Chapter 7 or Chapter 13?

There will be some specific requirements for both these chapters. You can file bankruptcy under Chapter 7 when your monthly expenses are more than your monthly income. You can consider Chapter 7 if you earn less than the median income. Also, it can be a suitable choice when you do not have a lot of things to keep. Chapter 7 might discharge most of your debts. But you cannot expect that it will eliminate all your debts. Besides, you can file bankruptcy under Chapter 13 if your monthly expenses are more than your monthly income. However, Chapter 13 involves creating a repayment plan. You will have to repay some loans within sixty months.

When Can a Judge Dismiss Bankruptcy Petitions?

When your monthly income is more than your monthly expenses, a judge can dismiss your Chapter 7 bankruptcy petition. However, you can consider Chapter 13 bankruptcy in that condition. You can hire experienced lawyers from Fong Law Group to know your current status. Experienced legal professionals can offer you the best help based on your financial condition. The Fong Law Group provides legal services to Monterey Park California, and surrounding areas.

 Will Creditors Stop Calling After Filing Bankruptcy?

Yes, your creditors will stop calling you once you file bankruptcy. They will have to follow the legal process. Hence, they will not harass you anymore. Also, it will stop debt collection lawsuits, foreclosures, and utility shutoffs. But it might be temporary, and you can talk to your lawyer to find a better solution.

Can All The Collection Efforts Stop After Filing Bankruptcy?

Yes, the creditors will have to stop all the collection efforts. Once you file bankruptcy, the bankruptcy court will notify your listed creditors. It will not take more than a week. Hence, your creditors will stop calling you within a week. However, if they do not stop bothering you, you can reach out to the lawyers of Fong Law Group. The experienced lawyers will act immediately to end such actions.

 Will Bankruptcy Impact My Credit Report?

Yes, it will impact your credit report. But it will not remain on your credit report forever. The maximum period is ten years. However, you can improve your credit score within this period by avoiding late payments. Also, you can check your credit report to find any errors, and you can talk to the credit bureau to fix them. Yes, you can gradually improve your credit score. You can win the trust of lenders again as well.

Do you want more help? 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 and Your Credit FAQ

Bankruptcy can come to your rescue while struggling with a financial crisis. However, the impact of bankruptcy will be there from years to a decade. Many Americans believe that bankruptcy will impact their credit for a lifetime. Yes, credit and bankruptcy are closely related. The impact will be more in the initial years. However, you can improve your condition slowly and win the trust of lenders.

 Will Discharges Remain On Credit Report?

There is no doubt that bankruptcy discharges will appear on the credit report for years. You will find credit and bankruptcy in California interlinked. However, the bankruptcy discharges will not stay on the credit report forever. Also, you can take a few steps to improve your credit score. When it comes to how long bankruptcy will remain on your credit report, it will vary based on the type of bankruptcy.

How Long Will Bankruptcy Stay on My Credit?

If you file bankruptcy under chapter 7, the discharges will stay on your credit report for around 7 years, and then fall off. Discharge accounts will show as a derogatory mark. Yes, the credit report will include discharged' or “included in bankruptcy” with a zero balance. However, they will not appear on your credit score after seven years. The benefit is that the accounts will not appear as past due or unpaid.

Will Chapter 13 Bankruptcy Offer Some Relaxation?

Under chapter 13 bankruptcy, the discharges will show on your credit report for seven years. This bankruptcy creates a repayment plan to repay some loans. The period for repayment is three to five years. After the bankruptcy process, you will get a discharge of qualified loans. However, discharges loans will reflect on your credit score for seven years.

Will Its Impact Diminish Gradually?

The bankruptcy will reflect on your credit report from seven years. However, the effect will diminish after a period. If you keep yourself financially responsible after declaring bankruptcy, you will notice improvements in your credit report. Lenders might work with you based on your current financial status, assets, and other factors.

What Are the Ways to Improve Your Credit After Filing Bankruptcy?

After filling the bankruptcy, you can check your credit report. You will have to ensure that only discharged accounts are on your credit report. It might take a couple of months to show the updates on the credit. If there are negative marks after the period, you will have to correct them. You can contact the credit bureaus and fix the errors. Besides, you can consider the following steps to improve your credit after filing bankruptcy. A professional law firm like Fong Law Group can help you in the same.

Check Credit Score

You can check your credit score to fix any errors. Also, it will help you to address any potential issue and prevent further damage.

Avoid Late Payments

Late payments will have a significant impact on your credit. Hence, you will have to pay bills on time without any exception.

Understand Your Limits

You will have to stick to your budget. You can avoid overspending and save if it is possible.

With careful planning, you can improve your credit score after filing bankruptcy.  Check your credit score to find improvement areas. Also, you will have to avoid overspending and late payments. Gradually, you will notice a difference.

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.

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.