Ron lives in Chicago, Illinois. He is a librarian at a nearby public library. Instead of being laid off, Ron chose to take a salary cut when the library's budget was slashed. With his $45,000 salary, Ron qualifies for a Chapter 7 bankruptcy, but only has one credit card, which he uses to purchase gas. Ron pays this account monthly and has a great credit score. Ron also wishes he could afford to transform his condo into a true "man cave," with leather recliners, flat-screen TV's, a premium sound system, and other creature comforts.
Ron applies for several credit cards with high limits. He then proceeds to outfit his man cave to his heart's content. Once he is finished with his shopping spree, Ron realizes that he cannot possibly pay off his new debts. Ron decides to file a Chapter 7 bankruptcy. Ron's creditors object to their debts being discharged as an abuse of the Bankruptcy Code. After a hearing on his creditors' objections, Ron is granted a discharge, but none of the objecting creditors' debts are included in the discharge. Ron is now on the hook for all of the debt he just incurred. Ron could have withdrawn his filing as well to avoid the uncertainty of fighting the creditors' objections. An experienced attorney would not have let Ron file on these facts.
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