We consulted with a single woman who rented her home and owned personal property valued at $2,186.41.
Our client’s debt totaled $288,179.42, all of which were unsecured. The majority of the debt was comprised of business credit card debt and personal guarantees that she had incurred while owning a business that had recently stopped operating.
Our client was employed. Her monthly expenses ($2,810.67) exceeded her monthly income ($2,206.97) by $603.70. We filed a Chapter 7 bankruptcy case.
Our client owned non-exempt personal property worth $2,186.41, and, since she was entitled to personal property exemptions totaling $5,000.00, all of her personal property was exempt.
Our client was relieved when the trustee filed a report of no distribution. She got to keep 100% of her assets and discharged 100% of her debt!
This case was an excellent example of filing a personal Chapter 7 case to discharge business-related debt.
