The Case of Monique White

This is the case of Monique White who comes to me from Chicago, Illinois seeking debt relief.  This white did a Chapter 7 back in 2012 but the case was dismissed so she never received a discharge.  She owns no real estate, she’s not a homeowner and she is currently living in a monthly rental situation on a property that is currently in foreclosure.  She has a 2006 Chevy HHR which is financed by Black Hawk Financial.  She is up to date on that payment and she wants to remain current on it.
In terms of personal property, she has no checking account and no savings account.  She has household goods worth approximately $1000 and she has minor clothing.  She does have life insurance which is a death benefit only and when she passes, someone will receive the death benefit.  She is also receiving a tax refund which is typically between $6000 and $7000 per year.
Ms. White is single with a dependent child age 14.  She has been working the last seven months as a representative for EN Services which is a company that handles industrial products.  She is paid once a week and her monthly income is approximately 13 $89 per month.
In terms of monthly expenses, she pays $550 in rent.  Her cellular phone bill is $50; her cable television bill is $80 per month.  She spends $300 in food, $65 in clothing, $55 in laundry and $35 in medical bills.  She has $250 expended per month for gas and transportation, $50 for recreation and $88 for auto insurance.  Childcare costs are $100 and her auto payment is $356.
When you take a look at her income minus her expenses, she has no money available to repay her debt.  In the last three years, she has earned approximately $18,000-$20,000 per year and a little bit of child support for her son but it is spotty at best.  She has had a couple prior addresses in the last three years, one in Chicago and one in Forest Park, Illinois.  There are no co-debtors.  She does owe $15,000 for student loans and she has no tax debt.  The main culprit that’s hurting her is a Pay Day loan for $3000, an old lease debt for $4000, parking tickets which are not eliminated in a Chapter 7 bankruptcy to the tune of $3000 and credit card debt of $300.
Based on what I am seeing, I would recommend a Chapter 7 fresh start.  Eliminate the debt that can be eliminated and work out payment plans for the debt that cannot be eliminated such as parking tickets.  So for Ms. White, Chapter 7 would be my recommendation.