This is the bankruptcy case study for A.S., who resides in Beecher, Illinois. She is in the office to find out whether chapter 7 bankruptcy will provide the relief that she is seeking. Let’s examine the facts in her case. She was a former homeowner of a manufactured home in Beecher. She is no longer in possession of that home and her intention is to get out of that debt. She is currently living with family in the meantime. She has no vehicle, and she has very little in the way of personal property assets. She does not have a checking account or a savings account. She has household items which she values at $1000, normal apparel which she values at $700 and no other personal property whatsoever.
She is single with two dependent children ages two and five. She is working as a personal assistant making approximately $12,000 per year. In terms of her expenses, she is paying $200 towards her rent, $50 for her cell phone, $450 for food, $50 for clothing, $50 for laundry, $250 for transportation, and $58 for childcare per month. Thus, her income and her expenses generally offset. In terms of her statement of financial affairs, she has earned approximately $12,500 each year for the past three years. She did have a checking account at Chase which was closed in March and it had a zero balance at the time of closing. She also had her prior address from 2013 to the beginning of 2015 which was in the manufactured home. She is the only one that owes money on her particular debts so we do not need to worry about any creditor proceeding against a co-signer. She does not owe for any student loans which would be nondischargeable anyway. She also does not owe any income tax debt which would also be nondischargeable if incurred within the past three years.
The basis of her debt comes from the former manufactured home, the outstanding lot rent thereon and some minor credit card debt. She is a perfect candidate for a chapter 7 bankruptcy case. She will eliminate the $20,000 owed on her manufactured home. She will eliminate the $4100 owed to lot rent as well as the $2000 credit card debt if she filed a chapter 7 bankruptcy. She will need to appear before a chapter 7 trustee who will ask a series of yes/no questions under oath. The trustee will find that she has no significant assets, there is nothing to administer for the benefit of creditors and she will be granted a fresh start. Thus, my recommendation for A.S. from Beecher, Illinois would be a chapter 7 fresh start to eliminate the miscellaneous debt primarily associated with her prior housing arrangement.
