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Bankruptcy Lawyer Champaign IL

Bankruptcy Lawyer Champaign IL

Bankruptcy Lawyer Champaign IL

A bankruptcy lawyer Champaign, IL offers knows that it can happen to anyone living in Illinois or other states throughout the country, whether through job loss, medical condition, or some other cause, where a person’s debt becomes so overwhelming that there just seems no way out. For many of these people, filing for bankruptcy is the best and smartest choice. But filing for bankruptcy is both a serious and legal option and one that shouldn’t be rushed into. If you are considering filing for bankruptcy, it is recommended you speak to a bankruptcy lawyer Champaign, IL residents trust from Pioletti Pioletti & Nichols.

The following are some frequently asked questions that our legal team often hears from our clients. For more detailed assistance for your situation, contact our office to schedule a free and confidential consultation.

When Should a Person File for Bankruptcy?

There is no right or wrong answer to this question since filing is such a personal decision and every situation is different. Filing for bankruptcy should really be the last resort after a person has examined all their other options, such as consolidating debt and budgeting monthly payments. If the amount of debt a person has is so much that there really are no other options to relieve the burden, then bankruptcy may be the right choice.

Which Type of Bankruptcy Should a Person File?

Just as when to file for bankruptcy depends on an individual’s situation, the type of bankruptcy also falls in this category. There are two types of personal bankruptcy an individual can file, Chapter 7 and Chapter 13. Chapter 7 bankruptcy will discharge most, if not all, of a person’s debt. This allows the person to begin anew with a clean financial slate. Chapter 13 bankruptcy gives the filer a repayment plan to pay off their debts instead of discharging them. If you are unsure of which type of bankruptcy is best for you, a Champaign, Illinois bankruptcy lawyer can provide you with that legal advice.

Will Bankruptcy Affect a Person’s Credit Score?

While filing for bankruptcy will have some sort of impact on a filer’s credit score, the reality is that a person who has reached the point where they need to file because their debt and financial situation is overwhelming is likely already experiencing a negative impact on that credit score because of late and missed debt payments. A person with a higher credit score who files for bankruptcy will drop more points than a person who has a lower score.

Contact Pioletti Pioletti & Nichols for Assistance

If you are considering filing for bankruptcy, don’t attempt to go through this process alone. Filing for bankruptcy can be a complex process and one mistake or missing document can result in the courts not accepting the filing and forcing you to start the process all over again, wasting valuable time. Call our office today to schedule a free and confidential consultation with a Champaign, IL bankruptcy lawyer and find out how we can help you achieve a new financial start.

Common Myths About Bankruptcy

Bankruptcy can help you get rid of most of your unsecured debts, so you can have a financial fresh start. However, there are many myths about the process that keep some people from filing for bankruptcy. Here are some common misconceptions about bankruptcy a bankruptcy lawyer in Champaign, IL hears:

Bankruptcy Discharges All Debt

While it would be nice if bankruptcy got rid of all your debts, it does not work that way. Bankruptcy can get rid of the majority of unsecured debts, like credit card bills, medical bills, and personal loans. However, it will not be able to discharge student loans, child support, and back taxes. You will still be responsible for paying these debts after you file for bankruptcy.

Bankruptcy Ruins Your Credit Forever

One reason why some people shy away from filing for bankruptcy is that they believe it will tarnish their credit rating forever. Although your credit will take a hit for several years, the effects will not be permanent. You may even receive credit card offers shortly after you discharge your debts. These credit cards will likely have low limits and high-interest rates, but they can help you build up your credit over time.

Bankruptcy Is Only for Financially Irresponsible People

Another common misconception a bankruptcy lawyer in Champaign, IL lawyer hears is that everyone who files for bankruptcy is financially irresponsible. However, not everyone who declares bankruptcy has gone on one too many shopping sprees. Many times, bankruptcy results from job loss or illness. If you lose your job and can no longer pay your bills or rack up a lot of medical debt, bankruptcy may be your only way to get financial relief.

Bankruptcy Will Cause You to Lose Your Home

Some people are afraid to file for bankruptcy because they believe they will lose their home as a result. If you file for Chapter 7 bankruptcy, you have a chance of losing your home, but it’s not certain. If you don’t have a lot of equity, a bankruptcy trustee probably will not sell your home to pay your creditors. On the other hand, if you have a lot of equity in your home, you will want to protect it by filing for Chapter 13 bankruptcy. With Chapter 13, you will still have to make payments toward your debts, but at reduced interest rates.

Getting Help When You Need It Most

Filing for bankruptcy can be complicated and it is not always so clear-cut as to whether filing is the right thing to do or not. You may wish you had a quick list to look over to help you determine if filing for bankruptcy is the best option. 

Reasons Why Filing For Bankruptcy Could Help You

  1. You will be able to keep exempt property
  2. It can help you when your utilities are about to be shut off
  3. If you do not have a driver’s license because it was taken for not paying a debt, you can get it back
  4. You no longer have to worry about repossessions or foreclosures unless a court specifically allows them to proceed
  5. Chapter 13 bankruptcy can allow you to keep certain property that is especially important to you

Reasons Why Filing For Bankruptcy May Not Help You

  1. You may have other, better options for protecting your property that do not include filing for bankruptcy
  2. You will have a difficult time rebuilding your credit and getting loans after filing for bankruptcy
  3. You may not be able to keep all of your property
  4. Bankruptcy will stay on your credit for many years 
  5. Not all debt will be wiped away from bankruptcy, including debts like student loans, child support, and alimony

It is imperative that you speak with your trusted Champaign, Illinois bankruptcy lawyer before filing for bankruptcy process so that you can determine if this is the best solution for you and your family when it comes to finding financial freedom.

Are there any filing fees involved with bankruptcy?

Many people are surprised to find out that there are filing fees when it comes to bankruptcy. In some instances, you may have a hard time paying the filing fee. When that is the case, you may be able to petition the court to make payment installations when filing for Chapter 13 bankruptcy. Similarly (and under very certain circumstances), you may be able to ask the court to waive the filing fee when you are applying for Chapter 7 bankruptcy. If you are concerned about paying the filing fee for bankruptcy, make this known to your attorney as soon as you begin the bankruptcy process. 

Can you file for bankruptcy with your spouse? 

You and your spouse can file for bankruptcy together but that does not necessarily mean that it is the best idea. Speak with your attorney about whether it would be beneficial for you to file separately or jointly. This will depend on different factors, like whether one or both spouses are liable for the debts you are hoping to get rid of. 

Hiring a Bankruptcy Lawyer Isn’t Necessary

Many people who want to file for bankruptcy are struggling financially and don’t know if they can afford to hire a bankruptcy lawyer in Champaign, IL. However, filing for bankruptcy without a lawyer is incredibly risky. It is a complex process and making simple mistakes on your filing can get your case thrown out. That is why it is wise to invest in an experienced lawyer. Call our trusted Champaign, Illinois bankruptcy lawyer now!

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