Davaros Debtor is a New Jersey resident who is thinking about filing for bankruptcy. Debtor has been employed in the past by ABC Corporation where he made $75,000 a year. As ABC Corporation hit hard financial times, Debtor was laid off. Debtor is currently working, but took a cut in salary to be employed and is making $45,000 a year. When Debtor was out of work, he was injured and amassed $100,000 in medical bills as he didn't have insurance. Of this amount, around $20,000 is due to Dr. Detroit, and the remaining $80,000 is owed to General Hospital. Debtor also has $50,000 in credit card debt on his Visa card. The mortgage on the home where he currently resides is $350,000. Debtor is currently separated from his spouse, to whom he owes around $12,000 in child support. Debtor is still paying off loans from his undergraduate education to Sally Mae. While still employed at ABC, Debtor purchased a summer home at the New Jersey shore. Purchased for $200,000, he sold the home around a year ago for $75,000 to a distant cousin. Is Debtor a candidate for bankruptcy protection? Why or why not? If Debtor isn’t a candidate for bankruptcy protection, is there anything that Debtor can do to become eligible to file for bankruptcy protection.
Davaros Debtor is a New Jersey resident who is thinking about filing for bankruptcy. Debtor has been employed in the past by ABC Corporation where he made $75,000 a year. As ABC Corporation hit hard financial times, Debtor was laid off. Debtor is currently working, but took a cut in salary to be employed and is making $45,000 a year. When Debtor was out of work, he was injured and amassed $100,000 in medical bills as he didn't have insurance. Of this amount, around $20,000 is due to Dr. Detroit, and the remaining $80,000 is owed to General Hospital. Debtor also has $50,000 in credit card debt on his Visa card. The mortgage on the home where he currently resides is $350,000. Debtor is currently separated from his spouse, to whom he owes around $12,000 in child support. Debtor is still paying off loans from his undergraduate education to Sally Mae. While still employed at ABC, Debtor purchased a summer home at the New Jersey shore. Purchased for $200,000, he sold the home around a year ago for $75,000 to a distant cousin. Is Debtor a candidate for bankruptcy protection? Why or why not? If Debtor isn’t a candidate for bankruptcy protection, is there anything that Debtor can do to become eligible to file for bankruptcy protection.
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