This is a case of Santana Magentey who comes to me from South Ellis Ave., Chicago, IL. Santana is coming to me for a free, initial consultation regarding bankruptcy. She basically wants to know if she can re-file a chapter 7 bankruptcy case to obtain a new start.
Let’s take a look at the facts of her case. She did file a chapter 7 bankruptcy back in 2011. However, she did not receive a discharge. She did not receive a discharge because she never completed the two hour financial management class. Plus, she is eligible for a discharge because she has not received one in the past.
Assets
In terms of real estate property, she has no real estate. She is currently renting an apartment and she is on a yearly lease which expires in February. She has a 2005 Chevrolet Malibu which is financed by Midwest title loans. The current value of her vehicle is $4700 and the amount she owes to pay off the title loan is $1500. What’s interesting with a title loan is that her vehicle was once paid in full. She then needed financing or money, so she went to a title loan company and provided her title as security. Thus, if she wants to keep that vehicle, she must continue to pay Midwest title.
Debts
In terms of personal property, she has no checking account and no savings account. She has a security deposit equal to $526. She has very minor household goods which she values at $500 and very little in the way of clothing which she values at $500. She does have a 401(k) through her employer with approximately $200. She is expecting a tax refund for a whopping $11,000.
Santana is a single mother with twins ages seven. She is currently working as an assistant manager at a fashion outlet. She has been at the same job for approximately 6 months and she is receiving anywhere from $1000-$1500 per month net income. In terms of monthly expenses, her rent is $487. Her electric and gas bill totaled $150. She has a home phone of $75 and a cellular phone and $55. She has a food budget of $450, a clothing budget of $100, and a laundry and dry cleaning budget of $40 per month. She pays $20 per month for medical bills, $100 for transportation, and $100 for recreation. Her auto insurance is $113 per month and her auto payment is $476 per month.
Conclusion: Chapter 7
As I can see, her income and her expenses are basically offsetting each other. Thus, she really is in the need a fresh start and she does not have available money to reorganize. She does have some non-dischargeable debt such as a federal student loan in the amount of $3000. However, the good news for Santana is that we can eliminate the $2200 in medical bills, the $2000 owed to an overdrawn bank account, and other miscellaneous debt of approximately $6000. Thus, I would recommend a chapter 7 fresh start to eliminate the debt. She will keep paying for her vehicle, and she will still owe the student loan company. Overall though, chapter 7 is going to be the best result for Santana from Chicago.
