This is the bankruptcy case study for Ms. C. who resides in Lombard, DuPage County, Illinois. Ms. C was referred to me by a prior client who I helped with chapter 13 bankruptcy. What’s interesting about this particular case is that the debtor is currently in a chapter 13 bankruptcy with another attorney, but she is very unhappy. Let’s examine the facts.
She does not own any real estate whatsoever. She is currently renting on a yearly lease which expires in October and her landlord lives in Chicago. In terms of a vehicle, she has 2008 Pontiac G6 which is financed through Acceptance Financial Services. She owes approximately $23,000 on the vehicle and makes monthly payments of $361. This vehicle is currently restructured in her pending chapter 13 bankruptcy. In terms of personal property, she does not own a checking or savings account, she has household goods valued at $300, clothing and jewelry valued at $300, a 401(k) profit sharing plan valued at $400, and she is expecting a tax refund in the amount of $5000.
Her personal situation is that she is single with no dependent children. She is currently working as an assistant manager for the past seven years in Aurora, Illinois. She earns approximately $2100 per month take-home from her job and additionally she has a link card which provides $369 in food stamps. Looking at her monthly expenses, she pays $1100 per month for rent, $50 for electricity, $60 for cellular phone, $96 for cable TV, $369 for food, $250 for transportation, $40 for auto insurance, and $400 for support to others.
Her debt consists of $8700 in credit card debt, $23,000 in medical debt, $4000 in parking tickets, $5000 in toll way violations and $8000 in federal taxes. What is happening is that her current chapter 13 is failing. She is locked into a payment plan that she cannot afford. The financial creditor on the vehicle is bringing a motion to modify the automatic stay and the trustee also has a future trustee’s motion to dismiss. What I would like to do for Ms. C. is to re-file her bankruptcy case after the trustee’s motion to dismiss. I believe I can get her into a lower payment chapter 13 and protect her vehicle with a motion to extend the automatic stay. She will get credit for all the payments that she made in her current chapter 13 which should bring down the total amount owed on her vehicle.
In summary, I would recommend refiling a chapter 13 with a new plan and a new structure. I believe with the right paperwork and the right documentation, Ms. C. can have a much more affordable chapter 13 which will likely lead to success.
