Bankruptcy Case Study For Eddie B. From Chicago, Illinois

Real Estate Property

This is the case of Eddie B. who comes to me from Chicago, Illinois, which is located in Cook County, Illinois for a bankruptcy consultation. Eddie has filed a chapter 7 bankruptcy but it’s been over 12 years so he is eligible to file again. He owns a single-family home worth approximately $180,000 and his mortgage debt is $170,000. Thus, he does not have significant equity and he will be permitted to keep that house as long as he continues to make his monthly payments. He also has a homeowner’s association fee of $155 per month and he is up to date.

Personal Assets

He has a 2011 Acura financed through the credit union at the rate of $556 per month with a total outstanding balance to pay off the vehicle at $27,000. He is current on his vehicle and he wishes to reaffirm the debt thereon. He has a checking account at Chase bank, he has minor household goods valued at $500, normal clothing and minor jewelry valued at $500, term life insurance in the amount of $300,000, he cannot sue anybody for any reason, he does not expect to inherit any money in the next six months, and he has not given away or sold anything for less than its fair market value in the last six months.

 Income & Expenses

In terms of employment, he is currently unemployed and is receiving no income from unemployment. He is currently living off of his savings account and it is being depleted every month. In terms of household expenses, he has $1600 per month for his mortgage, $155 per month for the Association, $150 per month for electricity and gas, $180 per month for telephone, $140 per month for cable TV, food is $500 per month, gas and transportation is $20 per month, and his auto payment is $550 per month.

 Current Affairs

He has not worked this year or last year but he did work two years ago and received $70,000 total. In the prior two years he has received $15,000 worth of unemployment compensation. He is not currently being garnished, he is not being sued, he has not closed a bank account in the last six months, and he has not transferred any real estate in the last four years. He has no co-debtors on his debts, he does owe student loans totaling $45,000 and he has no tax debt, either state or federal. The issue for Eddie is that he owes approximately $20,000 in credit card debt as well as his student loans. Chapter 7 will eliminate the credit card debt. It will not eliminate the student loans. By filing a chapter 7, he is in a greater position to be able to save his house, pay for his vehicle, and make an installment agreement on his student loans. If he does not file chapter 7, he will likely lose his home and his vehicle as he struggles to make minimum monthly payments on credit cards.

 Total Attorney Fee For Bankruptcy Case

The approximate attorney fee for a case like Eddie’s would be anywhere from $1300-$1700 depending on the nature of the case. For more information on bankruptcy and how you may be helped, you may contact the office at 847-520-8100.

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