This is the bankruptcy case study for Phyllis Jones who resides in Chicago Heights, Illinois. She is interested in a chapter 7 bankruptcy to eliminate credit card debt. Phyllis is currently married but she is separated. She filed a chapter 7 back in 2006 so she is eligible to file once again. She does not own a home as she is renting from the Cook County Housing Authority. She has a yearly lease which expires in December. She does not own a motor vehicle. She has a checking and savings account at Chase bank with an approximate balance of less than $100 total. She has minor household goods valued at $300, she has normal clothing valued at $300, and she has no other assets whatsoever.
In terms of employment information she is currently unemployed and receiving disability insurance payments. She is receiving approximately $741 per month from Social Security as well as food stamps in the amount of $29 per month. As far as monthly expenses, she has rent at $157 per month, electricity and gas at $50 per month, cellular telephone at $60 per month, cable television and $70 per month, Internet access at $29 per month, food at $200 per month, laundry at $15 per month, and recreation at $50 per month. In terms of income over the past three years she has only received the Social Security disability at the rate of approximately $10,000 per year. She is not currently involved in any lawsuits, she has not had any property repossessed in the last year and she has not closed a bank account in the last year.
In terms of debts, she has a student loan debt totaling $19,000 which is non-dischargeable. In terms of dischargeable debt she has $14,000 worth of credit card debt, $10,000 worth of medical debt, $3000 worth of personal loans and a $16,000 debt due to an auto repossession. Based upon the income, expenses and financial affairs of the debtor, she will qualify for a chapter 7 fresh start. The only debt that will remain after the bankruptcy case is completed is the student loan debt. Based on the fact that she is currently receiving Social Security disability payments, there is no expectation that she will be able to pay back that debt. Thus, the recommendation for Phyllis Jones from Chicago Heights, Illinois is a straight, chapter 7 bankruptcy filing.
