Chapter 13 Case Study

This is the chapter 13 case study for Conrad Washington who lives in Chicago, Illinois. Mr. Washington has never file a bankruptcy before, he does not own any real estate, and he is renting from his mother who lives at the same address as him. He does not own a vehicle as he uses public transportation. In terms of personal property he has a checking account and a savings account at Bank of America with a zero balance. He has very minor household goods valued at $200, normal clothing valued at $200, and he has no other assets of any sort. He is currently single. He is working for the past 13 years doing physical labor. He is paid weekly at the hourly rate of $11.25 per hour.

His total income from all sources is $1,412.00. In terms of monthly expenses, he lists $761 total between all of his monthly expenses combined. In terms of his summary of financial affairs, he earns approximately $18,000-$22,000 per year depending on over time. He did receive minor unemployment in the past two years at the rate of $1200 per year. He had a prior address in Chicago at 11752 S. Vincennes. There are no co-debtors on any of his debt. He owes the IRS for the years 2012 and 2013 for a total of $1200.

The main issue for Conrad is parking tickets owed to the city of Chicago in the amount of $7000, a prior repossession back in 2007 and a garnishment of $7000. Based upon his ability to put something away towards his debt each month, Conrad qualifies for chapter 13 bankruptcy relief. The filing fee currently at the time is $310 to file a chapter 13 bankruptcy. I estimate his plan payment to be approximately $175 per month and the case should last anywhere from 36 to 60 months. So for Conrad Washington, Chapter 13 will alleviate the parking ticket debt which can be paid back at less than the total amount owed.