Case Samples

Credit Repair:

Real Case:
          Ms. Li’s refinancing application was denied when she checked her credit file, she found two unpaid credit card debts, and her score was only 560 points. One debt owed to Bank of America $5,000, which was charged for merchandises six months ago in New York. Another debt owed to MBNA $9,500, which was cash advanced by her ex-husband three years ago. Ms. Li had never been to New York. It is impossible that she shopped there. She canceled a joint credit card accounts with her husband when she divorced five years ago. Obviously, her ex-husband is appropriate her personal information to apply for the credit card and failed to pay after charging. Attorney Wu cleaned up the negative entry in her credit file, her score jumped to 710 points which enabled her be refinancing. Both Bank of America and MBNA stopped collecting money from her.


Real Property :

Real Case:
          In past 2 years, Mr. Liu lost $300,000 in his restaurant business; including 3 months rents of $15,000. He decides to lease is correct, operation and dissolve the business to avoid additional loss, but the lease is not expired until 11/01/2011. Mr. Liu is 3 months behind on house mortgage payment totally $6,000 since he invested all his savings in the restaurant business. The bank is claiming that should he fail to pay within 15 days. A foreclosure will be initiated. The current market value of the house is $550,000, with 1st mortgage loan of $400,000 and 2nd mortgage loan of $100,000, leaving$50,000 equity.


Related Commercial Lease Law:

          If a tenant unilaterally terminates an unexpired lease, a tenant shall pay to a landlord: 1) rents owed, 2) rents from a tenant vacates till a new tenant moves in, and 3) the difference between new month rent and old monthly rent. Less security deposit, if Mr. Liu vacates on 11/01/03, new tenant moves in on 11/01/04 on $4,500 new monthly rent, Mr. Liu needs to pay landlord: $15,000 [3 month rents owed] + $60,000 [12 months rents without a tenant] + $42,000 [84 months ($5,000-4,500) difference] - $10,000 deposit =$107,000.
Final Result: Mr. Liu retained attorney Wu to negotiate with landlord. Landlord agreed to retain the $10,000 deposit plus $18,000 to settle in full. Mr. Liu is very satisfied with the result.

Related Foreclosure Law:

          when a home owner defaults on payment, the lender must first issue and record a “Notice of Default and Election to Sale under Deed of Trustee”.  After 90 days, the lender issues and record a “Notice to Sale under Deed of Trust indicating a sale will be conducted in 20 days. If there is insufficient sale proceeds to cover the loans, all lenders (except 1st mortgage lender) may claim deficiency from a home owner. If Mr. Liu’s house is sold for $500,000, he losses the house with no money receive. If it is sold for $470,000, Mr. Liu owes 2nd mortgage lender $30,000!


Final Result: Mr. Liu transferred house title to 2nd mortgage lender, in exchange for canceling the loan agreement, stop fore closure, and dismiss its claim for damages.



Real Case:
          A Married man owes approximately $70,000 in credit card debts, gambling debts, medical services fees, and personal loans. He owns a house worth $300,000 of market value and owes $230,000 mortgage loan and owes $18,000 auto loan. His company owes $150,000 in loans and rents, with inventories worth $50,000, office furniture and equipments worth $5,000. The creditors were after him for the debt owed on a daily basis and later on, sued him. Cannot withstand the pressure, he sought legal help from Attorney Sam Wu. Mr. Wu filed Chapter 7 Bankruptcy for him and his company and cancelled all debts owed. All the creditors stopped chasing after him for the debt. After the Bankruptcy, Mr. Wu helped him setup a Limited Liability Company; he retained Mr. Wu as his legal counsel for five years since the organization of the L.L.C, and has been carrying on his business successfully.


Debt Negotiation:

Real Case:
          A lady owing $60,000 has a high income and a rental property. She does not want to and cannot file for Bankruptcy protection. She hired Attorney Sam Wu to negotiate with her creditors. Mr. Wu was able to negotiate 50% off of her debts, the creditors allowed her to pay the debt in installments without interests, and she was able to maintain her credit in good standing. Later on, someone stole her ID and charged $8,000 on her credit card. She hired Mr. Wu to handle the case and was able to resolve the matter without having to damage her credit and without having to pay for the $8,000. For the past two years, she referred more than 10 new clients to Mr. Wu.


Lawsuit and Property Protection:

Real Case:
          A man owns a computer company. Unfortunately, he was involved in a lawsuit where he got sued for fraud, violation of patent, and breach of contract. The judgment was entered against him for $1,200,000.00. He and his wife owns a house, car, their interest in the computer company, stocks, and money in their bank account. The combined values of their assets are about $600,000.00. The plaintiff tried to enforce the judgment against them in many ways, and he sought legal help from Attorney Sam Wu. Mr. Wu devised a property protection plan for him; all his major assets were legally transferred and protected through this individualized plan. The plaintiff was not able to get his property and assets and finally was willing to settle the whole case with just $150,00 instead of $1,200,000.00. The settlement was arranged to be paid through 30 monthly installments. All assets were skillfully and legally protected.


Copyright 2003, Law Office of Sam X. J. Wu