This is the bankruptcy case study for Ted who resides in Wheeling, Illinois. He is in the office today to determine whether or not a chapter 7 fresh start would be his best option. He is currently married. However, he is going to be filing potentially as an individual. He does not own a home. He is currently renting an apartment. He has a monthly lease which expires in February, 2016. He has a 2012 Chrysler 200 vehicle which is financed by Chrysler Financial. He values the vehicle at $14,000 and he claims to owe approximately $13,000 on it. He is current on his payment which is $285 per month. He wishes to keep the vehicle which is known as a reaffirmation.
In terms of his personal property, he has a checking account and a savings account at Chase Bank with an approximate balance of $100 total. He has a security deposit on hand with his landlord amounting to $300. In terms of his TV, furniture, clothing and other personal belongings, he values those at $400. He does expect a tax refund of approximately $2500. He has no retirement account or other investment account.
He is currently married however he would be filing individually as his spouse does not work. He is currently making nothing per month as he was recently laid off. He expects to regain employment in the next several months which would provide income of approximately $90,000 per year. In terms of his monthly expenses, he pays $950 for rent, $100 for electricity and gas, $200 for cellular phone, $50 for internet access, $1000 for food, $150 for health insurance, transportation cost of $400 and his auto payment is $285.
In terms of his summary of financial affairs, he has earned approximately $20,000 last year. He is currently on pace for $15,000 this year as he is not going to be working the entire year. He is being currently sued by one of his credit card companies and the court date is scheduled for next Thursday. He has had two prior addresses within the last five years. One address was in Chicago and the other was in an Ann Arbor, Michigan. He does not owe for any student loans and he does not owe for any tax debt. His big issue is credit card debt.
He currently owes approximately $65,000 in miscellaneous credit cards. There are five particular companies that have relatively high credit card debt one of which is currently bringing the lawsuit. I would advise Ted that chapter 7 would be the best option at this point in time. We can eliminate the miscellaneous credit card debt and he can keep the vehicle provided he continues to make current monthly payments. He will be able to reestablish credit within six months to two years after filing. He will be able to continue to rent his apartment and keep all of his personal effects free and clear. Thus, chapter 7 bankruptcy would be my recommendation for Ted from Wheeling, Illinois.
