Bankruptcy – Chapter 7 Is The Recommendation

This is the case of Kelly Stapick who comes to me from Villa Park, Illinois which is in DuPage County, Illinois.  She is also here with her husband, Joseph Stapick.

The couple does own real estate property worth approximately $190,000.  It’s a single-family home.  There is one mortgage on the property and they owe approximately 200,000, thus there is no equity.  They are up-to-date on their real estate and they wish to keep it.  They are not renting from anybody and nobody is renting from them.

In terms of personal property, they have a 2011 Honda Civic which is financed by Honda Financial Services.  The vehicle is worth approximately $12,000 and they owe approximately $15,000.  They are up-to-date on their payment.  They pay approximately $364 per month on that vehicle.  They have another vehicle, a 1998 Honda Prelude which is paid in full.  They feel that vehicle is worth approximately $1500.  Both vehicles, by the way, are owned by both husband and wife.

In terms of personal property, to have a checking account at Harris Bank, minor household goods worth approximately $1000 in normal clothing worth approximately $800.  Husband has a term life insurance policy which is a death benefit only through his employer.  Husband also has a 401(k) with approximately $9000 on account.  They received a tax refund of $3700 which has already been spent.  They have one domestic pet worth approximately $25.

The couple is married and they have three minor children in the household.  So it is a four-person household technically.  The wife is working at M&M Orthopedics.  Husband is working as an assistant manager at McDonald’s.  Wife also works for Mary Kay as an independent distributor.  The total monthly income from all sources is approximately $3800.

When we look at their monthly expenses, they’ve got $1644 for the mortgage.  Real estate taxes and insurance are included in those payments.  They have a cell phone bill at $164, food at $400, clothing at $100, laundry at $75, medical and dental at $200, recreation at $100, gas in total is at $250, health insurance is at $100, automobile insurance is $106 every month in the auto payment is $364.  When you look at their income and their expenses, they are just breaking even.

In terms of the last three years, husband has made approximately $32,000 per year for the last three years.  Wife has made approximately $24,000 each year for the last three years.  The only business they have was the Mary Kay business, no significant sales in that business.

There is one co-debtor, their father, on a Best Buy account with approximate balance of $3300.  No student loans, no tax debt.  Miscellaneous medical debt of $2000 in credit cards of approximately $10,000.  I would recommend a Chapter 7 fresh start bankruptcy.  Keep the property such as the real estate and the vehicle and eliminate the debt owed to the credit cards in the medical bills.  So for Kelly and Joe Stapick from Villa Park, Illinois, Chapter 7 fresh start is the recommendation.

 

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