New Chapter 13 debt limits increased to $2.75M

Debt Relief

Atty. LAwrence yAng

ON June 21, 2022, Pres. Biden signed into law the Bankruptcy Threshold Adjustment Act. It increased the Chapter 13 debt limits to a total of $2.75M without secured or unsecured separate categories.

The old limit for Chapter 13 before this amendment was $1.395M for secured debts and $465K for unsecured debts.

With many individuals being forced to borrowing significantly more to survive the pandemic, especially individuals with small businesses, the old limits were not practical to provide reorganization relief.

For example, client borrowed $500K business loans so his business can continue operating despite losses caused by the pandemic, he would not qualify for Chapter 13 because the unsecured debt limit was only $465K. His alternative would have been Chapter 7 where his house would be at risk if the equity was near $600K, or Chapter 11 which costs a lot more than Chapter 13 in legal fees. Chapter 11 would cost ten times more in legal fees than Chapter 13.

In client’s case, he can propose a Chapter 13 plan that pays a small portion of the $500K. Depending on his equity on the house, his Chapter 13 plan can be very small. If his equity in his residence does not exceed $600K and he lives in Los Angeles county, he may even be able to get a plan payment for only 2% of $500K, that’s about $200/month plan payment for 60 months. It’s a great reorganization for client. After paying only $10K of the $500K in 60 months, the court will discharge or wipe out $490K of the $500K business loans.

This law will expire in 2 years from June 21, 2022. So, it will be effective for one more year from now until June of 2024, unless it is extended or made permanent. Considering next year is election year, the chances of extension of being made permanent is good. Besides, $495K for unsecured debts is actually forcing debtors into unpleasant options. If you have too much debt and need relief, please set an appointment to see me. I will analyze your case personally. If you have a small business that increased your debts to survive the pandemic, now is the time to seriously consider Chapter 13 to reorganize. It’s the right step to take.

* * * Disclaimer: None of the foregoing is considered legal advice for anyone. There is absolutely no attorney client relationship established by reading this article.

* * * Lawrence Bautista Yang specializes in Bankruptcy, Business, Real Estate and Civil Litigation and has successfully represented more than five thousand clients in California. Please call Angie, Barbara or Jess at (626) 284-1142 for an appointment at 20274 Carrey Road, Walnut, CA 91789 or 1000 S. Fremont Ave., Mailstop 58, Building A-10 South Suite 10042, Alhambra, CA 91803. (Advertising Supplement)

Kris opens up anew about health, love life

“THE battle is far from over” were Kris Aquino’s words which she posted in Filipino on her Instagram account.

Aquino shared the latest on her health as it has been almost a year since the erstwhile Queen of All Media flew to the U.S. to seek advanced medical care for autoimmune diseases.

On her Instagram account, Aquino shared that she started her first “baby dose” of methotrexate, which she said is used to treat cancer by slowing its cell growth.

A chemotherapy agent and immune-system suppressant, medlineplus.gov noted that it is also used to treat psoriasis and possibly rheumatoid arthritis by decreasing the activity of the immune system.

Aquino said she had been hesitant to take the strong medication because she knew her immune system wasn’t ready. But after finding out that her blood panel numbers were bad, that she has developed scarring and micro nodules in her right lung, and that her inflammatory numbers were high, she finally agreed to start taking methotrexate at a smaller dose.

Aquino had revealed that she has been diagnosed with several autoimmune diseases: chronic spontaneous urticaria, autoimmune thyroiditis, and Churg Strauss or EGPA, a rare and life threatening form of vasculitis.

Her update, however, said “it’s definite” that she has “5, possibly 6 autoimmune conditions.”

“How badly I wanted to keep this private because I’m scared baka mawalan kayo ng gana to keep praying for me & my doctors, my sons, and my sisters. Hindi ako sumusuko, sana wag rin kayo sumuko? Please? (How badly I wanted to keep this private because I’m scared that you will get tired of praying for me, my doctors, my sons and my sisters. I’m not giving up and I hope you won’t either. Please?)

In the middle of her ongoing health battle, Aquino took the time to thank people in her life who have supported her and her sons.

She thanked friends and relatives who have been keeping an eye on her eldest son Josh who already flew back to the Philippines because he “loves Tarlac and Makati.” The proud mom revealed Josh already lost weight since his return to the country.

Aquino then divulged that her son Bimb — who has been with her in the U.S. — will fly home by the end of July.

“I want him to experience what I didn’t, a regular high school and college life.”

Love and friendship

Finally, Aquino also thanked a certain “Marc” for all the both the love and friendship they shared.

“I’ve been so unfair in not thanking you enough for all your effort to be here whenever I need you, for all the times my past has made me so jaded that I keep breaking up with you all because I didn’t believe a long distance relationship stood a chance because of your job obligations, and because I need at least two cycles of 9 months each before I can hope to reach remission.

“Marc, I’m sorry for punishing you for what others have done to me. You are 100 percent correct, you’re not them.”

Aquino then thanked Marc for not posting about them and for keeping their “new relationship” private.

“We are proof that love comes when you least expect it. Thank you for your 12 years of perseverance. Whatever God decides for us, let’s please end up best friends for the rest of our lives?”

Netizens speculated that Aquino was referring to Batangas Vice Governor Mark Leviste, even though the spelling of his first name is different. It can be remembered that Leviste flew to the U.S. in February to celebrate Aquino’s birthday. The following post on Aquino’s Instagram on Thursday night seemingly confirmed this speculation.

The video featured Itchyworms’ Jazz Nicolas, in support of Conrado Antonio “C2”Leviste 2nd’s student council campaign at La Salle Greenhills (LSGH). The younger Leviste is the governor’s son.

“Hi. I’m Jazz of Itchyworms. A mutual friend asked me to do a favor for Kris Aquino who’s now in LA getting her medical treatment. Someone close to Kris said C2 Leviste, who’s running for La Salle Greenhills’ 11th grade batch rep, could become Ms. Aquino’s stepson,” Nicolas introduced.

In her caption for the video, Aquino related that C2 has called her “mommy Kris.” (By Christina Alpad/ManilaTimes.net)