Directions

In the following three cases, discuss why it may or may not be a good idea for the client to declare bankruptcy. An actual bankruptcy decision might depend on factors beyond what is presented below, so there is not necessarily a correct yes$/$no decision to make here. The point of the exercise is to pick out elements of the client situations that may point toward choosing to pursue or not to pursue bankruptcy.

The assignment should be in the range of $200-300$ words $($word count does not include repeating any of the assignment narrative or directions$).$ Include citations for all sources used.

Case $1$

Ryan is a retired veteran. His income consists of Social Security and VA benefits. He has a mortgage balance of $$50,000$ and his home is valued at $$125,000.$ There is a state homestead exemption is $$75,000.$ Her has $$25,000$ in credit card debt and is currently $3$ months behind on his gas and electric bills.

Case $2$

Jerry is divorced male in his early $40\text{'}$s$.$ His take home pay is approximately $$8,000$ a month. His ex$-$wife has primary custody of the children and he pays her $$3,000$ a month for alimony and child support. He owes $$15,000$ on a car loan. The car is worth $$20,000$ and the state personal property exemption on cars is $$3,000.$ He also has $$30,000$ in federal student loans and owes the IRS $$15,000$ in back property taxes. His children are still young, so he will be paying child support for many years. He finds himself on occasion making only the minimum payments on his debts.

Case $3$

Sharon works for slightly above minimum wage. She has no health insurance and recently had an illness that created $$50,000$ in medical debt. She also has several credit cards and store credit accounts that add up to another $$40,000.$ She also owes her parents $$10,000.$ She is now healthy, but even taking a second minimum wage job, she is unable to even make the minimum payments.