Facts:
This is the bankruptcy case study for a woman who resides in Chicago, Illinois and who is interested in getting out of debt. I’m going to discuss her particular situation by examining her assets, liabilities, income and expenses. By doing so, I will be able to determine whether or not she qualifies for bankruptcy and if so, which chapter. If she qualifies for a chapter 7 fresh start, then she will only make payments on secured items that she wants to retain. If she qualifies for chapter 13 reorganization, then I will propose a monthly payment plan which will satisfy either a portion or all of her debt over a three to five-year term.
Property:
In terms of property, she does not own any real estate. She is currently renting on a month-to-month lease and she is up to date on that lease. She does not have a vehicle in her name. She has very little in the way of personal property. Her total personal property consists of a checking account with a balance of $500, normal household items which are valued at $400, normal clothing valued at $600, and no other personal property whatsoever.
Family:
In terms of her family situation, she is single and she has four dependent children ages ranging from 10 months old all the way to 14 years old. She is currently working as a leasing agent and she’s been doing that for approximately 6 months. Her pay frequency is sporadic in that she is paid on a commission basis. On average, she is bringing home approximately $3000 per month. In examining her monthly expenses, it appears that she does have available money per month to go towards her creditors. Specifically, she pays $700 per month for rent, $30 per month for insurance, $150 per month for maintenance, $65 per month for electricity, $60 per month for cellular phone, $35 per month for cable TV, $600 per month for food, $100 per month for clothing, $50 per month for laundry, $80 per month for transportation, and $100 per month for recreation. 
Finances:
In terms of her statement of financial affairs, she has earned approximately $30,000 so far this calendar year. In the last two years she has earned $24,00.00 and $36,000.00 respectively. She did have a prior address in Chicago, Illinois, on and off for the past 10 years prior to her current address. She did have one co-debtor on a debt owed to Ford Motor credit based on a vehicle that was repossessed. She also has a student loan which she knows is not going to be discharged in a bankruptcy. In addition to that, she has a debt owed to the Illinois Department of Employment Security for an overpayment as well as a $11,000 owed to the City of Chicago for parking tickets.
Recommendation:
My recommendation in this case would be to file a chapter 13 bankruptcy. By doing so she can pay a portion back to the City of Chicago as well as the Illinois Department of Employment Security in an effort to eliminate the balance of whatever is owed to those two entities. She can do so by paying approximately $250 per month over the next 36 months. In examining her budget, I feel she comfortably has $250 per month that she can repay to the chapter 13 trustee to get out of debt. If she is successful in her repayment plan, the balance of what’s owed to the City of Chicago as well as to the state of Illinois would be eliminated. The only remaining debt that she would have after her chapter 13 is concluded would be the remaining portion of her student loan debt which is non-dischargeable. Thus, chapter 13 is my strong recommendation in this particular case from Chicago, Illinois.
