This is the case of Dante Shorr who comes to me from North Chicago, Illinois seeking information on bankruptcy. Mr. Shorr has never filed for bankruptcy before. He is not a homeowner and he has currently living with family. He has a paid off vehicle which is a 1985 Lincoln Town Car which is worth approximately $2000 so it’s covered under his Illinois exemption amount.
In terms of personal property, he has minor household goods worth approximately $1000 and normal clothing worth approximately $300. He does receive an annual tax refund of approximately $1200 per year. He is single and he has no dependent children. He is currently working as a janitor earning approximately $25,000 per year. His monthly breakdown in income is $925 gross every other week and he is netting approximately $824 in his pocket after his expenses. His expenses offset his income so he really has nothing available after he pays his normal bills.
In terms of his statement of financial affairs, he is earning anywhere from $25,000-$30,000 each year. He does receive unemployment in the last couple years. He has been in a lawsuit. He did have a prior address from 2009 to 2010 in Waukegan, Illinois. There are no co-debtors. He is the only one on these debts. He owes no student loans and he owes no income tax debt, either state or federal. Other than the $8000 that he owes on a past auto deficiency, he has got $4500 worth of credit card debt, $8000 worth of medical bills and $2000 worth of utilities.
So Mr. Shorr is a good candidate for Chapter 7 in that he is below the median income, he does not have funds available to repay his creditors and a fresh start would do him a good bit of service. So in this particular case, Mr. Shorr, I would recommend a Chapter 7 which involves filing a petition with the bankruptcy court and the appearance of at least one meeting of creditors. An experienced attorney would be able to help you and guide you through the bankruptcy process under Chapter 7.
