The Case of Felicia Meachum

This is the case of Felicia Meachum who comes to us from Oak Park, Illinois for a bankruptcy consultation.  Felicia has never filed for bankruptcy before.  She is not a homeowner and she is currently renting from Fox Partners LLC.  She has a 2006 Pontiac G6 financed by B-Rider and she owes approximately $14,000 on the vehicle and it’s worth $15,000 so she has a little bit of equity in the vehicle.  The monthly payment is $360 per month and she is current.
In terms of personal property, she has a checking and savings account at Chase Bank with very nominal balances.  She has a security deposit with her landlord of $1250 per month and she has minor clothing and minor furniture.  She does have a term life insurance with a death benefit only of approximately $250,000.  She does receive child support at $150 every two weeks and the provider is current.  She is divorced.  She has a daughter who is 11 years old.  She has been working for the last two years at Northwestern University and she earns approximately $40,000 per year.  When you add in the child support on top of the $40,000 per year, she does have sufficient income to likely do a Chapter 13 bankruptcy.
In terms of debts, her rent is $1195 per month.  Her telephone is $130 per month.  Her cellular phone is $195 per month.  She has food expense of $400 per month, laundry and cleaning of $20 every week and gas and tolls at $80 per month.  Her auto insurance is $200 per month and her auto payment is $189 every two weeks.  So income minus expenses is real close but I think she does have something available that would go towards the creditors each month.
In terms of income, she has made approximately $40,000 for the past three years.  She did have a vehicle that was repossessed by Santander back in 2012 for a Land Rover.  She has a safety deposit box with nothing in it other than papers and maybe a couple coins, but nothing of real value.  And she had a prior address in the last couple years in Oak Park, Illinois.  She did try a business that ended in 2010.  That business has no assets.  She is the only one on these debts.  There are no co-debtors.  She has student loans through Illinois Student Assistance to the tune of $40,000.  And whatever IRS debt she owed at the time of the consultation she says she has now paid off.  In terms of debt, she has credit card debt.  She has an SBA loan.  She has a gas bill, phone bill, cell phone bill and her vehicle.
So this is the case where if there is something available per month, I’m going to recommend a Chapter 13 bankruptcy.  So Felicia Meachum, we are going to go through your income and your expensive in great detail and provided you have a little bit available per month to repay your creditors, I’m going to recommend a Chapter 13.