This is the bankruptcy case study for Mrs. R who resides in Waukegan, Illinois. She filed a chapter 7 bankruptcy case 10 years ago so she is technically eligible for another filing. She does not own a home as she is renting. She is on a month-to-month lease and has been renting from the same landlord for four years. She has a 2006 Chevy Equinox which is financed through Nationwide Bank. Her monthly payment is $360 and she owes approximately $4000 to pay the car off. She is current on her payments and she wishes to reaffirm the debt on the vehicle.
In terms of personal property, she has a checking account at Fifth Third Bank with very little in it. She has a security deposit with her landlord of $800. She has minor household goods valued at $2000, normal clothing valued at $300, term life insurance, and no other property whatsoever. She is currently single with two children under the ages of 14. She is working as a CNA and has been doing so over the past 18 years. She also has a part-time job as a CNA and has been working in that capacity for the past four years. When we look at her income from both jobs she is netting approximately $3400 per month. Let’s examine her expenses:
Her rent is $815 per month, electricity is $100 per month, gas is $100 per month, telephone is $55 per month, cable TV is $56 per month, food is $475 per month, clothing is $400 per month, laundry is $100 per month, medical is $300 per month, transportation is $260 per month, health insurance is $194 per month, kids care is $60 per month, and her auto payment is $360 per month. When you look at her income and expenses she is basically breaking even each month. This will allow her to file a chapter 7 bankruptcy case and get a fresh start. Her debts are basically credit card debts and some medical. She has over $54,000 worth of credit card debt and $7000 worth of medical debt. By filing a chapter 7 bankruptcy case, she can continue to rent her apartment, pay for her vehicle, and eliminate all of her miscellaneous debt.
So my recommendation for Ms. R. from Waukegan, Illinois would be a chapter 7 fresh start bankruptcy.
