Bankruptcy Case Study For Simmons

This is the case of Darva Simmons who comes from Elmhurst, Illinois seeking debt relief.  Ms. Simmons file a Chapter 7 bankruptcy over eight years ago so she is eligible for another Chapter 7 should that be necessary.  She owns no real estate.  She is renting a month-to-month lease and the landlord lives in Elmhurst, Illinois.  She has a 2010 Kia Soul that is co-owned and she would like to keep paying for that vehicle.  She is currently up to date.  Her monthly payment is $425 and she owes about $12,000 on that vehicle.
In terms of personal property, she has a checking account at Chase Bank with a very nominal value.  She has minor household goods and minor clothing.  She does have a security deposit on hand with her landlord $1045.  She did get a tax refund in 2011 but the refund was not significant.  She does not have the ability to sue anybody for personal injury or workers compensation and she does not expect to inherit any money in the next six months.
She is married and she does have one minor child, an 18-year-old daughter who is still living in the house.  She works as an office administrator at the University of Illinois and her husband is a laborer with Aramark.
In terms of monthly income, she and her non-filing spouse have approximately $3600 coming in per month between the two of them.  When we look at her monthly expenses, there is $1045 for rent, $225 for electric and gas, $250 for telephone, $30 for Internet access, $400 to $500 for transportation, $100 for recreation, $150 per month for charity, $143 per month for auto insurance and $425 per month for an auto payment.  Joe also helps contribute to the college cost of her daughter who still lives at home for her living expenses.
In terms of the Statement of Financial Affairs, Ms. Simmons makes approximately $25,000-$30,000 per year depending on overtime.  She was recently garnished for a dental bill and she did have a prior address from 2008 to 2010 in Elmhurst, Illinois.  The only co-debtor is on her vehicle with her spouse she owes no student loans and she does not owe any tax debt, state or federal.  She does have a Comcast bill and she does have a personal loan and a credit card bill.
The debt is not excessive and I do feel she has a couple options here.  First, Ms. Simmons could try to work out installment payment plans with the creditors and pay for it on her own without needing to file for bankruptcy.  If, however, she feels she cannot be successful with those creditors or they won’t work out any kind of deal, then Ms. Simmons can avail herself of Chapter 7 bankruptcy protection.  She can continue to make her car payment; that is called reaffirming a debt.  And she can eliminate the rest of her miscellaneous debt.  So Chapter 7 is a possibility for Ms. Simmons from Elmhurst, Illinois.