Chapter 7 Bankruptcy Case Study

This is the chapter 7 bankruptcy case study for Jaime Gober who resides in Des Plaines, Cook County, Illinois. Jamie is currently married however his wife is not going to be filing with him. He has never filed a bankruptcy case before. He has a single-family home worth $195,000 and he owes approximately $144,000. He has a first and second mortgage with BMO Harris bank and he has property tax arrears of 7500. He has a 2006 Honda Odyssey which is worth $11,500 and he owes $11,000 to Wells Fargo Bank. He is current on the vehicle, pays $243 per month and wishes to maintain the vehicle. In terms of personal property, he has a savings account at First Midwest Bank with a value of approximately $3000, household goods valued at $2000, clothing valued at $600, and a tax refund that he expects to receive in the amount of $1800.

He is currently married although his wife is not going to be filing. He works at and WC Hospital and has worked in that capacity for the last seven years. He brings in approximately $1927 per month after-tax. In terms of monthly expenses, his first mortgage is $670 per month, second mortgage $60, homeowners insurance $90, water $156, electricity $150, food $1000, clothing $50, medical bills $60, recreation $100, health insurance $140, automobile insurance $322, and the auto payment of $242.

In terms of debts, he has approximately $134,000 in medical bills. This is a perfect case for a chapter 7 fresh start bankruptcy. The chapter 7 will eliminate the medical bills and the debtor will be able to continue to possess his home and vehicle provided he makes payments. One court date is required to eliminate the debt. He will have to take a credit counseling session as well as a personal financial management instruction course. He will need to provide the most recent year’s federal tax return as well as two months’ worth of paycheck stubs. The approximate fee for this type of case would be $1950 which includes the court costs.

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