Bankruptcy Lawyer Champaign IL
Bankruptcy Lawyer Champaign IL
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 for 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 IL 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 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 because 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. Manytimes bankruptcy results from job loss or illness. If you lose your job and can’t 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.
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.