Recommending Chapter 7 Filing At This TIme

This is the case of Chris Angelos who comes to me from Aurora, Illinois which is in Kane County, Illinois.  Chris is going to be filing individually since he has already gone through a divorce and has not remarried.  He has a single-family home with approximately $75,000 on Zillow and he owes $91,000 to Earth Mover Credit Union for the mortgage.  The property taxes are paid separately, they are not escrowed and they are approximately $2000 per year.  He is up to date on the taxes and on the mortgage.  He is not renting from anybody and no one is renting from him.

He’s got a 2011 Hyundai Sonata which is financed through PCS Bank.  He owes $11,000 on that vehicle and he would like to keep it.  The monthly payment is $258.  There is not significant equity in that vehicle.  He also has a couple other vehicles, a pickup truck which is paid in full, value $500 and a 2001 Chrysler Sebring which is paid in full which really belongs to his ex-wife through the judgment for dissolution.

He has a checking account with Sun Trust Bank, minor household goods, normal clothing.  He has a whole life insurance policy where his ex-wife is the beneficiary with approximately $4000 available.  He has an annuity with $500 in there and he’s got a pension which has approximately $2100 in there.  He does have two dogs and two cats valued at $60.  They are domestic cats; the trustee is not interested in administering those assets.

He is working for KB Staffing right now as a bus driver and he is not making a lot of money so he is in dire need of some help.  He’s got unemployment coming in at $258 a week and he’s got the pension at $2100 per month.  School bus driving is basically $850 net per month that it only lasts from November through June.

In terms of monthly expenses, that home mortgage is $849 per month.  The property taxes as we mentioned were separate, that’s $167 per month.  He’s got the normal utilities, clothing, food, transportation.  He does have the auto payment of $259 per month.  And pet food is $50 per month as well.  His total monthly expenses are approximately $3200 per month.

Based on the fact that his income is low in his expenses are consistent, he would definitely qualify for Chapter 7 which is a fresh start.  He does have some IRS debt from 2011 which would not be eliminated yet and that’s approximately $9000.  He might want to wait an additional year or two so that those taxes can be eliminated.  However, he does have $75,000 worth of general unsecured creditors such as medical bills in credit cards which I’m sure he would like to see go away sooner as opposed to later.

So for Chris Angelos in Aurora, Illinois; Chapter 7 fresh start is a great way for you to get out of debt.

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