A Chicago Bankruptcy Case Study

Let’s talk about Mrs. Wiley.  She lives on Loomis Avenue in Chicago.  That’s Cook County, Illinois.  No prior bankruptcy.  There is a single-family home involved worth $126,000.00, and she owes about $140,000.00, so no equity in that single-family home.  She’s not renting from anybody.  Nobody’s renting from her.  She has a 2007 Lexus IS 250 finance through MB Financial.  The vehicle is worth $25,000.00.  She owes approximately $20,000.00.  She also has a 1998 Nissan Altima, which is worth $1,000.00.  It’s paid in full.  No issue there.  In terms of checking and savings, she’s got both.  She’s got minor household goods.  She’s got clothing.  She’s got a wedding ring.  No retirement account.  She does have a dog.

Asset Analysis

She can’t sue anybody for any reason.  She doesn’t expect to inherit any money in the next six months.  She hasn’t given away or sold anything for less than its fair market value.  Again, she’s married, no dependent children.  She’s working as a cashier.  Her husband is working for the City.  Together, they have combined income of approximately $6,000.00 per month, and their expenses exceed the $6,000.00 per month, so my initial inclination would be to recommend a Chapter 7 fresh start.  There are no co-debtors, there are no student loans, and there is no income tax debt.  We’re talking about the typical credit card/medical bill/personal loan case, and I would definitely recommend a Chapter 7.  Chapter 7 will allow for the fresh start.  She’ll be able to keep the property she has as long as she continues to make payments on it.  Creditor harassment will stop, lawsuits will stop, interest on the debt will stop, and she’ll get a complete fresh start.

More case studies are found at Chicago Bankruptcy or call (847) 520-8100.