Bankruptcy Lawyer Bloomington IL
Are You Facing Foreclosure? Contact a Bankruptcy Lawyer Bloomington IL Trusts to Save Your Home
Bankruptcy Lawyer Bloomington, IL
A bankruptcy lawyer that is respected and admired by Bloomington IL residents knows that filing for bankruptcy is one of the most difficult decisions an individual can make. There can be a number of reasons and factors that can force a person to file for bankruptcy. It is not the ideal solution to relieve a person of their debt issues, but sometimes it is the only solution available. However, with the assistance of a reputable lawyer who can support you through the bankruptcy process, the experience can be considerably less stressful. You can obtain professional help by contacting a Bankruptcy Lawyer Bloomington, IL who has helped many clients with bankruptcy, like one from the team at Pioletti Pioletti & Nichols.
For over 80 years, the lawyers at Pioletti Pioletti & Nichols have served their clients and helped them become informed of their legal rights. They believe that quality legal services and representation are built on trust and accessibility, and are available to their clients 24/7.
Types of Bankruptcy
If you’re someone who is facing bankruptcy, you may have a couple of questions about where to start. A skilled lawyer would advise you that you review all the information and facts of your financial situation before filing for bankruptcy. There are several types of bankruptcy and individuals can file for, so it’s important you choose the one that is most appropriate for your particular situation. There are also a number of requirements you have to meet, so consulting with an experienced Bloomington, IL bankruptcy lawyer is highly recommended. Below are the most common types of bankruptcy that people file for:
- Chapter 7. As one of the most common forms of bankruptcy, Chapter 7 bankruptcy eliminates many kinds of debt and prevents debt collectors from harassing you with collections notices. It takes only a few months to complete, unlike Chapter 13 bankruptcy. One of the biggest benefits of Chapter 7 bankruptcy is that it allows homeowners to retain their property. Some of the debt categories that are not affected by Chapter 7 bankruptcy however include student loan payments and unpaid taxes.
- Chapter 13. This type of bankruptcy centers on debt reorganization and a simplified repayment plan. In exchange for debt reconsolidation, individuals must agree that they will make monthly payments. Some of the benefits of Chapter 13 bankruptcy is that it temporarily halts evictions, foreclosures, and repossessions. Chapter 13 may be beneficial for people in a variety of scenarios, such as those who have high credit card debt or other types of unsecured debt.
If you are a homeowner who is struggling financially and facing foreclosure, you may be trying to decide if it would be better to just let the foreclosure go through or if bankruptcy may be an option for you. Both of these choices can have a major negative impact on your credit rating. A foreclosure will stay on your credit report for seven years. Bankruptcy will stay on your credit report for either seven or 10 years (depending on which type you file).
At Pioletti Pioletti & Nichols, we are dedicated to helping clients with their financial issues. Whether you are facing foreclosure, vehicle repossession, wage garnishment, or other types of financial issues, we can help you determine what legal options will work for your situation.
If you are facing foreclosures, there are factors that your Bloomington IL bankruptcy lawyer can go over with you in order to help you decide what you want to do. If you want to save your home, then there are several steps you can take. If your mortgage arrears are one or two months, then the bank or mortgage company may be willing to work out a payment arrangement with you. Other options may be to restructure your loan or agree to a forbearance. This is when the lender agrees not to foreclose, and the borrower agrees to keep to a repayment plan with will eventually bring the mortgage current.
If none of these options will work, then you may be able to keep your home through bankruptcy. There are two types of personal bankruptcy, Chapter 7 and Chapter 13. In Chapter 7 bankruptcy, everything a person owns is liquidated. In Chapter 13, all debt is restructured. In order to stop a foreclosure, Chapter 13 would be the appropriate option.
Once your bankruptcy lawyer files your bankruptcy petition with the court, all debt collection ceases. This also includes any foreclosure proceeding that your mortgage lender has instituted. A payment plan is set up in order for you to pay all your creditors, including your mortgage.
Why Not Foreclosure?
Although bankruptcy may have a negative impact on your credit score, a foreclosure is much direr to your score, causing a drop of approximately 300 points. Not only that, future lenders do not like to see foreclosures in your record, whereas a bankruptcy does not have such a negative effect. You have a much better chance of obtaining a future mortgage if you file bankruptcy and not have a foreclosure.
A third option that may work is a short sale. A short sale is when the property is worth less than the balance you owe for your mortgage, but the mortgage lender agrees to waive your obligation to pay the balance owed after the sale.
And lastly, the mortgage company may agree to a deed in lieu of foreclosure. This is where you agree to turn the property over to the mortgage lender do not have any more obligation.
Schedule a Consultation For Legal Assistance
Financial recovery is possible after filing for bankruptcy. It may take several years for your credit score to return to an acceptable number, but many people who go through bankruptcy do have better control of their finances and quickly experience positive results by the end of the process. By working with a lawyer, you benefit from additional guidance and legal support to make bankruptcy much less stressful to go through. Contact a trusted bankruptcy lawyer that Bloomington, IL counts on and schedule a consultation at Pioletti Pioletti & Nichols today.
Contact a bankruptcy lawyer Bloomington IL clients recommend to discuss what your options are if you are facing foreclosure or any other financial difficulties. Call Pioletti Pioletti & Nichols for assistance.
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