Case Study Supports Chapter 7 Bankruptcy Filing

This is the case of Joe Campos who comes to me from Joliet Illinois seeking a bankruptcy consultation. Joe is not a homeowner and he is not currently renting from anyone. He does not own a vehicle and he uses public transportation. In terms of personal property, he does not have a checking account or a savings account. He has household goods which are valued at approximately $300, he has normal clothing which is valued at approximately $400 and he has two pit bull dogs which are priceless. He has no 401(k), profit sharing, or any other retirement account, and he does not expect to inherit any money in the next six months.

In terms of household size, he has two minor children that live with the mother of his children. Thus, he is currently living by himself and he is unemployed. In terms of income he is only receiving food stamps at the rate of $189 per month. In terms of expenses, which are very light due to the fact that he’s living with his parents, he has the following: cellular phone bill $50, food $189, support to the children at the rate of $290 per month which is paid through the state disbursement unit.

In terms of financial affairs, he has made $2200 from employment this year earlier in the year. Over the past prior two years he has made no income. He is not currently being sued, he has not had any property repossessed, he has not closed a bank account in the last year. He has no co-debtors on his debts. He does not owe for any student loans and he does not owe any tax debt.

There are two main issues in this case. The first being credit card debt incurred over the course of the past eight years at the rate of $25,000 total. He also has medical expenses due to an illness which amount to $10,000 total. Based upon the above, this is a simple case for Joe in that he should avail himself of the chapter 7 relief provided under the United States bankruptcy code. By filing chapter 7, Joe can receive a fresh start and eliminate all of his credit card debt, medical debt and miscellaneous expense debt. He does need to find employment so he can continue to pay the monthly child support to support his two minor children. However, filing bankruptcy would be a good first step towards getting a hold on his finances and taking responsibility.

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