Driver’s License About To Be Suspended
This is the bankruptcy case study for Ms. R. who lives in Chicago, Illinois. She is into the Chicago Beverly office on a rush situation due to the fact that her driver’s license is about to be suspended for failure to carry liability insurance. The facts of her case are relatively simple. She is not a homeowner and she is currently living with her parents, no formal lease arrangement. She has a 2012 Ford Taurus which is financed by Drive Time. She owes approximately $17,000 to pay off the vehicle, her monthly payment is $430 per month and she is current on her payments. In terms of personal property, she has a checking account with a zero balance. She has minor household goods valued at $300, normal clothing and jewelry valued at $300 and a tax refund expected of $1500.
She is single with a dependent child age seven. She is not working as she is currently unemployed. Her only source of income at the present time is food stamps in the amount of $347 per month. In terms of monthly expenses, she is contributing $300 per month towards her rent, $50 per month for a cell phone bill, $100 for clothing and her link card which is the food stamps of $347 per month. In terms of her financial affairs, she has earned anywhere from $6000-$9000 each year for the past three years.
Chapter 7 Is The Solution
The big issue for Mr. R. is that she has a $60,000 judgment against her from State Farm insurance due to an auto accident with no insurance. She also has minor utility bills such as US cellular, T-Mobile, AT&T and tickets in the amount of $1400. Since her auto accident with no insurance was not DUI related, the filing of a chapter 7 bankruptcy will undo the suspension on her driver’s license. Thus, I would strongly recommend a chapter 7 bankruptcy as soon as possible so that she can regain her driving privileges once again.
