This is the bankruptcy case study for a debtor who we will refer to as Ms. Mercury who resides in Zion, Illinois. Ms. Mercury is here to determine whether she can obtain relief under the United States Bankruptcy Code. She does not have very much at all in the way of personal property. For example, she does not own any real estate as she is currently renting on a yearly lease which expires in April, 2016. She does not own a motor vehicle. She has a savings account at Guarantee Bank with an approximate balance of $200. Her biggest asset is the security deposit on hand with her landlord of $1100. Her household goods such as TV, furniture and electronics are valued at $800. She also has normal and ordinary clothing which she claims a value of $300.
In terms of her household, she is single with four minor children ages 16, 14, 11, and 7. She is currently working and has been doing so for the past eight months as a caretaker. She is paid approximately every other week and she brings in $1247 a month from her job. She is also receiving Social Security disability income for her daughter in the amount of $733 per month. She is also receiving link, which is assistance for food, in the amount of $750 per month. In terms of debt, she is residing in section 8 housing and spending approximately $285 per month for rent. Her other monthly expenses for electricity are at $400 per month, gas at $400 per month, cellular phone at $110 per month, cable television at $172 per month, food at $900 per month, clothing at $200 per month, transportation at $50 per month, and entertainment expenses at $250 per month.
In terms of her summary of financial affairs, she has earned approximately $2000 a month gross for the past eight months. She is also receiving $733 consistently per month for SSI and $750 consistently per month for link. She did have a prior address in the last four years which is located in Beach Park, Illinois. She resided there from 2010 through 2014. She has not closed a bank account in the last year. She has not had any property repossessed or returned in the last year. She does not have a safety deposit box. She has not sold or transferred any real estate in the last four years. She has not owned her own business in the last four years. She is the only one responsible for these debts as no one has cosigned for her. She does not owe any student loans. She does owe the IRS from 2013 approximately $1500.
The debt issue for Ms. Mercury is as follows: she owes $2000 to the gas company as well as the electric company. She owes approximately $6000 in miscellaneous credit card debt. She also owes $5000 on a prior apartment lease. Based upon the nature of her debt and based upon her income situation, I would recommend a chapter 7 fresh start bankruptcy. She simply does not have the income to repay her debt over a three to five-year period. In fact, she would clearly benefit by the fresh start offered under chapter 7 and she would be able to start providing once again for her family. Thus, chapter 7 is the strong recommendation for Ms. Mercury from Zion, Illinois.
