Peoria Bankruptcy Lawyer
Bankruptcy Lawyer in Peoria, IL
Any Peoria, IL bankruptcy lawyer should know the difference between Chapter 7 Bankruptcy and Chapter 13, including our experienced lawyers at Pioletti, Pioletti & Nichols. Debt can become overwhelming in a short time. Bill collectors may be calling all the time. Notices threatening court action may arrive daily. What can someone do who is unable to repay these debts? Declaring bankruptcy is a way for someone to get out from under the crush of debt and start over from scratch. There are a couple of proceeding types for individuals looking for relief. Chapter 7 and Chapter 13 bankruptcy can help but function in different ways. Discover the fundamental differences between these two bankruptcy types before proceeding. Our family-owned firm has had multiple generations in protecting clients’ rights and we are here for you.
- Peoria, IL Bankruptcy Infographic
- 3 Questions To Ask Your Bankruptcy Lawyer
- Does Residence Matter for Military Divorce?
- Common Myths About Bankruptcy
- Do’s and Don’ts When Filing Bankruptcy
- What to Expect from Your Lawyer
- Bankruptcy Lawyer Peoria, IL
- What to Look For In Your Bankruptcy Lawyer
- Illinois Bankruptcy Statistics
- Pioletti Pioletti & Nichols Peoria Bankruptcy Lawyer
Chapter 7 Is About Liquidating Debt
Some people who own substantial assets may go through Chapter 7 bankruptcy. This process involves a court-appointed trustee going through assets and deciding what can be liquidated. Everything is considered, including personal items of value, such as jewelry and motor vehicles, homes and investment property, and bank accounts. However, there are exemptions or items that a trustee cannot liquidate without the owner’s permission. These usually include the primary residence and a vehicle, among other things. Each state has a comprehensive list of exemptions.
Chapter 13 Involves Restructuring Debt
There may not be enough value in assets to pay off a significant part of the debt. In this case, Chapter 13 may be the better route for relief. The court-appointed trustee goes through the debts and negotiates the balances. Then, a payment plan is established through the court based on the debtor’s income. The payments must be made according to schedule and usually continue for three to five years.
Discharge of Debt By The Judge
Once the terms of any liquidation or payment plan are fulfilled, the creditor returns to court. The judge will confer with the trustee and decide whether any further action is required. There will likely be debt remaining in some forth. This is usually unsecured or credit card debt. These are the last-paid debts as they do not have collateral that can be returned for credit. After the terms of the bankruptcy are complete, the judge will likely discharge the remaining debt. If a person goes the Chapter 7 route, this happens quicker than those making payments under Chapter 13. However, those under Chapter 7 have likely lost assets in the process that those in Chapter 13 have not.
When contemplating which type of bankruptcy is better, consult with our bankruptcy lawyer for advice. We understand that struggling with unmanageable debt can be tiresome, confusing, and overwhelming. Our lawyers may help you start over with a clean slate through debt elimination.
Bankruptcy Lawyer Peoria, IL
If you are considering going through the process of bankruptcy then it is in your best interest to contact your bankruptcy lawyer. Filing for bankruptcy can be a difficult and often overwhelming process. You’re likely already emotional about having to go through the filing process, and it can easily be daunting when you consider how many steps there are.
That is where your attorney comes in. Their job is to make sure that this whole process is as smooth as possible for you. This is why you need to have an experienced lawyer on your team or risk dealing with more headaches.
Peoria, IL Bankruptcy Infographic
4 Questions To Ask Your Bankruptcy Lawyer
Drowning in debt is never an easy situation, but fortunately, there are laws in the United States that allow individuals and businesses the opportunity to relieve debts. This is possible through the federal bankruptcy process. Among several chapters that a filer can choose from, Chapter 7 and Chapter 13 are the most common.
Although a lawyer is not necessary to file, working with one can make the process much easier. Before meeting for your initial consultation, it can be helpful to have a list of questions. Consider these three to start brainstorming.
Do You Recommend Chapter 7 or Chapter 13, and Why?
If you are filing for bankruptcy as an individual, Chapters 7 and 13 are the ones you will likely choose between. The route that will be best for you will depend on your unique financial situation. This includes a calculation of all of your assets as well as your debts, income, and other factors. Make sure to ask your bankruptcy lawyer why he or she suggests one chapter over the other, and consider the answer. If you disagree, ask for another professional’s opinion.
What Is the Total Amount I Can Expect To Pay?
Sometimes, it can be difficult to understand the total cost behind legal processes. All attorneys charge different rates, and each one usually has his or her way of calculating fees for each case. In addition to attorney costs, there are also sometimes legal filing fees through the US and state governments that you should consider. Ask about the total amount you can expect to pay so that you will not run into any surprises.
When Will You File My Case, and When Can I Expect Finalization or Discharge?
After paying for legal services, one of the biggest questions most clients have is about how long their wait will be. This is completely understandable after paying for a service. Ask your bankruptcy lawyer when he or she will file your case. In addition, ask when you can expect everything to be over. Depending on which chapter of bankruptcy you file, the endpoint will vary, but either way, an experienced attorney should be able to give you a realistic time estimate.
Will I Lose Everything By Filing for Bankruptcy?
Your lawyer may help you through the worst of your bankruptcy, whether it’s coming up with a restructuring plan or selling off your assets. In a perfect world, you would keep what you earned. You wouldn’t have to worry about holding on to everything you’ve worked hard to build for yourself, and you wouldn’t have to sell everything off to satisfy creditors. Unfortunately, debt can become suffocating, and sometimes the only way out from under a major financial burden is to declare bankruptcy.
When you declare bankruptcy, you risk losing almost everything. The reasons behind your bankruptcy can vary: You might have been unable to continue with work due to an injury, or you might have just lost track of your previous obligations and now need a clean slate. Although bankruptcy is not most people’s favorite subject, it can be a helpful process to go through. Asking your future lawyer questions like these will help you better understand your situation as you move forward.
Chapter 7 and Chapter 13 bankruptcy are both used to get out from under debt, but Chapter 13 gives you a chance to work with a mandated payment plan so you can keep what you own. Chapter 7 is faster, and gives you a clean slate, but it also involves selling off those hard-earned possessions.
If you choose to file Chapter 7 bankruptcy, you’ll have to liquidate your assets. This means selling off your possessions and investments to satisfy the demands of your creditors. While filing Chapter 7 bankruptcy is a quick way to get out from under your debt, it can be painful to part with what you need to sell off: While there is a list of exempt properties you may be holding onto (such as primary residences, wedding rings, and appliances), the list of what can be sold is much longer, and it may shock you.
When you liquidate assets, pretty much everything is fair game. From family heirlooms to vehicles over a certain value, and even that stack of collectible baseball cards in your closet – it’s all worth something, and you might have to sell every last bit. While the short-term benefits of getting out from under your financial obligations may seem enticing, the sacrifice is serious and can be a source of personal pain for a long time.
Meet with A Bankruptcy Lawyer Today
Bankruptcy means freeing yourself from crushing financial burdens, but it also means potentially losing everything you’ve worked hard to build for yourself and your family. Fortunately, when you work with our bankruptcy lawyers from Pioletti Pioletti & Nichols, you get a chance to see your best options for bankruptcy, and you get a chance to hold on to the assets that matter the most.
Common Myths About Bankruptcy
Bankruptcy has been available to people struggling with debt for a long time, but there are still so many misconceptions about it. Unfortunately, these misconceptions may prevent some people from filing for bankruptcy. Here are some common myths our bankruptcy lawyers don’t want you to believe.
- You’ll never be eligible for credit after filing for bankruptcy. This is one of the biggest reasons people are reluctant to file for bankruptcy. They assume that no lenders will approve them for credit afterward. Although your credit rating will take a hit after filing for bankruptcy, you can start rebuilding it right away. For example, you can apply for a secured credit card. After a while, you can get your credit score back up and be eligible for loans.
- Everyone will know that you filed for bankruptcy. Some people are hesitant to file for bankruptcy because they think everyone will find out about it. However, unless you’re a prominent figure, no one has to know about your bankruptcy. The only way your family members and friends will find out is if you tell them.
- Only financially irresponsible people file for bankruptcy. Unfortunately, this stigma still surrounds individuals who file for bankruptcy. The reality, however, is that most people who file for bankruptcy are honest and hardworking people. They may have gotten into serious debt from a life-changing event, like a divorce, severe illness, or job loss.
- Creditors will still harass you after you file for bankruptcy. This is another common myth you should not believe. After you file for bankruptcy, your creditors are no longer allowed to contact you. If they do attempt to contact you, let your lawyer know right away.
- It’s difficult to file for bankruptcy. Another reason some people hold off on filing for bankruptcy is that they assume it is a difficult process. However, as long as you work with an experienced bankruptcy lawyer, the process doesn’t have to be difficult at all. A lawyer may help you file all the necessary paperwork on time and guide you through the process.
- Bankruptcy discharges all past debts. Some people assume they can get rid of all their debts through bankruptcy. Bankruptcy discharges the majority of your unsecured debts. However, there are still some debts that can’t be discharged, such as student loans, child support, and back taxes.
Freezing Bank Accounts
One of the most stressful things about struggling with debt is dealing with harassment from creditors. Many creditors can be aggressive in their pursuit of payments, using all kinds of threatening tactics to get a person to pay. Some even pursue legal action. When this occurs, the person may fear their wages will be garnished or their bank accounts frozen.
The law allows creditors to take people who owe them money to court to try to obtain judgments for the amounts owed. If the court grants the judgment, that debtor may be allowed to garnish the person’s wages. This means that a percentage of the person’s paycheck will be deducted automatically each pay period and sent to the creditor. There are specific federal and state laws on how much and what kind of debt can be garnished so make sure to check with your legal counsel if you are concerned about your wages being garnished.
Because there are specific rules on who can garnish wages, some creditors who don’t fall into that category may instead try to pursue what is referred to as a writ of attachment. In this case, the debtor is trying to freeze the person’s bank accounts to prevent them from making any withdrawals or transfers. If they are successful, they will then try to seize funds from the account to pay the debt the person owes.
To obtain a writ of attachment, a creditor has to show certain factors:
- The person who owes the money has plans to hide or has hidden assets to get out of paying the debt
- The person has plans to get rid of or already has disposed of assets to get out of paying the debt
- The person is planning on taking all of their assets and converting them to cash to get out of paying the debt
- The person plans on moving out of the state where the judgment was issued
- The person is intentionally hiding from creditors to avoid paying the debt
If you are being threatened with a writ of attachment or even a judgment, there are steps your lawyer can take to protect any assets you do have. One option may be to file for bankruptcy, however, to protect what assets you have from creditors, it is important to take immediate steps and not delay contacting your lawyer.
Do’s and Don’ts When Filing Bankruptcy
A bankruptcy attorney may help guide you through the process of filing. However, as a client, there are also mistakes to avoid and steps you should take to make certain that your bankruptcy case is handled appropriately.
Do Keep Track of Your Spending
When you’re going through bankruptcy, it’s important to maintain an accurate log of your spending. This is because your legal counsel needs to disclose your expenses to file. You may need to explain unexpected spending or significant withdrawals from your bank account, and keeping track of your financial habits can help you answer any questions that arise. In addition, documentation such as receipts, bills, and bank statements can be useful if you need to justify any of your expenses.
Don’t Hide Your Financial History
Because of an unfair stigma, you may have feelings of guilt or embarrassment regarding your bankruptcy. However, you should not hide aspects of your financial history from your bankruptcy lawyer. Concealing debts, assets, purchases, and significant transfers of property can seriously disrupt the filing process. Our attorneys have experience in bankruptcy law and are accustomed to working with people in situations similar to your own. Furthermore, lawyers are required to maintain their clients’ confidentiality.
Do Manage Nondischarchable Debts
Filing bankruptcy allows you to discharge many forms of debt. Nevertheless, there are some debts that you cannot discharge, and you should make a plan to manage them. Your lawyer can help you determine which debts are nondischargeable and how to approach them. Debts from student loans or unpaid child support must be paid eventually, even if you file for bankruptcy. It’s also important that you stay current on your taxes. Tax debts are nondischargeable and you need to provide up-to-date tax filings when you file for bankruptcy.
Don’t Make Big Transfers or Purchases
Avoid making any major financial moves before or during your bankruptcy filing. This includes transfers of property and other assets and major purchases that result in new debts. Failing to do so could complicate and delay the filing process. Some expenses, such as medical bills, may be impossible to avoid.
What to Expect from Your Lawyer
Before you start anything you need to consider finding legal representation. This process can be daunting all on its own but if you go in knowing what to expect it can make your life easier. Below are the expectations you should have going into this journey.
Expect Competence
Not all bankruptcy cases are going to be complicated but that doesn’t mean you should settle for just any lawyer that claims to cover bankruptcy. The lawyer that you decide to go with should have the skill level and experience necessary to handle your case. In general, your lawyer should be able to determine the difficulty of your case once you present to them the facts. From there you should ask if they have ever handled a situation like yours before. A good attorney is going to be honest with you through this process. If you find them struggling to understand your case then it is best to move on.
Expect Solid Legal Advice
In general, the retainer agreement will outline the services your bankruptcy lawyer will provide. It is their job to also provide you with competent advice through the process of filing. Possibly the most important advice your lawyer can give you is if bankruptcy is in your best interest. If it isn’t then they should be able to help you figure out how to handle your debts in the best way possible. If it is then they will be able to tell you what to expect and if your case has any particular difficulties or risks.
Expect Your Lawyer to File Your Paperwork
There is this lengthy packet of forms that comes with filing for bankruptcy and no one should have to do it alone. Most legal professionals have specialized software that prepares and files your required bankruptcy paperwork with the court. You simply provide your lawyer with all the information that is required and they will go over it making sure it is complete and accurate. From there they can send it in and you won’t have to worry about missing a deadline. Missing a deadline can cause delays in the process, a dismissal of your case, or other consequences.
Bankruptcy Lawyer Peoria, IL
When you’re considering filing for bankruptcy, one of the most important decisions you’ll make is who to hire as your legal counsel. We have years of experience helping people in your situation get back on their feet. We understand what you’re going through and will work tirelessly to help you achieve the best possible outcome. Contact us today to schedule a free consultation.
What is bankruptcy?
Bankruptcy is a legal process that allows an individual to discharge certain debts. Bankruptcy can also provide relief from collection proceedings, foreclosure, garnishment of wages, and other burdensome debts. For many people, bankruptcy is the only way out of unmanageable debt. There are two types of personal bankruptcies – Chapter 7 and Chapter 13.
What is a bankruptcy lawyer?
A legal professional who helps people file for bankruptcy. Bankruptcy is a legal process that can help people who are dealing with a lot of debt to get relief and start over. A bankruptcy attorney may help you understand your options and guide you through the process. If you are considering filing for bankruptcy, it is important to speak with a lawyer to find out if it is the right option for you.
What are the benefits of bankruptcy?
If you’re overwhelmed by debt and struggling to make ends meet, it might be time for bankruptcy. Bankruptcy is a legal process where you can discharge your debts and start over with a clean slate. There are many benefits of filing for bankruptcy such as relieving stress from your life so that you can focus on the most important aspects: family and happiness. Bankruptcy will offer relief from collection agencies, lawsuits, and the stigma of being in debt which could help bring color back into your life!
If you’re looking for a bankruptcy lawyer it’s important to find an attorney who will represent your best interests. The lawyer needs to be someone who is knowledgeable about the law and can help you manage this difficult time of your life.
The benefits of bankruptcy include:
- Stopping creditor harassment
- Staying in your home
- Keeping your car
- Discharging certain debts
What should I consider before filing for bankruptcy?
It is important to consider all of your options before filing for bankruptcy. You will have a better idea of what you can do if you know how much debt you owe, what assets and income sources you have, and how long it might take to repay the debts. In addition, many factors may impact your decision, such as the likelihood of being discharged from bankruptcy or how much money will be left over after paying off creditors in bankruptcy. To make an informed choice about this serious matter, it’s best to consult with a qualified attorney who understands both sides of the equation-the benefits and drawbacks associated with each type of debt relief process.
What does it mean if a property is exempt?
When you hear that your property is exempt, it means that it is protected. So, if you are filing for Chapter 7 bankruptcy and have an exempt property, you can keep it. If your property is not exempt, you can expect to lose it during the Chapter 7 bankruptcy process.
What to Look For In Your Bankruptcy Lawyer
Before starting to look for your legal aid there are some things that you need to keep in mind. Here are some of the key things that you should look for to find the right bankruptcy lawyer to represent you.
Look For a Specialist
Lawyers often practice in multiple areas but you should find somebody who specializes in bankruptcy law. A lawyer who dabbles in the little bit of everything is often not aware of the smaller aspects of bankruptcy law and they might not be up-to-date with the latest legal developments. Think of it this way: you wouldn’t want your general practitioner to be performing brain surgery on you, so why would you want a lawyer who is a specialist to help you with your bankruptcy?
Adequate Experience
Before you settle on a lawyer you should always ask about their experience. This doesn’t necessarily mean that somebody with more years of experience is going to be better equipped than someone with fewer years of experience. What matters is the number of bankruptcy cases they have successfully handled. If someone has been handling bankruptcy cases for years but hasn’t mastered the subject they often aren’t the right counselor for you.
Must Be Local
Besides being familiar with the bankruptcy laws the lawyer that you select should also know the local laws where you are. Bankruptcy procedures vary from state to state and even county to county. This is why you should find a lawyer who is in your area because they’re going to understand what to expect. The use of their knowledge of local court procedures can also benefit your case as they are going to know the judges and what strategies work with each particular judge.
Your Comfort Matters
At the end of the day, you should be comfortable with the bankruptcy attorney that you find. This means you should look for someone who’s going to listen to you and get specifics relating to your case to understand your situation. If you aren’t comfortable with your lawyer then nothing’s going to get done and your case might be at risk. This means that you shouldn’t make a decision solely on price. This means that despite somebody offering a good price you might find that you’re not comfortable working with. If this is the case then you should move on and find other representation.
Benefits of Filing for Bankruptcy
When many people think about bankruptcy, they imagine the negative aspects, such as how it lowers your credit rating. However, it is important to understand all the benefits that bankruptcy can provide, including:
- Clearing your debt – If you are thousands of dollars in debt, you may feel very stressed. You are not sure when you will be able to pay off all this debt and it is keeping you up at night. Since you have all of this debt, you may not be able to put any savings away. If you file for Chapter 7 bankruptcy, most of your unsecured debts will be wiped out. If you file for Chapter 13 bankruptcy, you will be entered into a manageable repayment plan. Once your debt is gone, you can have a financial fresh start.
- Preventing wage garnishment and other collection efforts – If you are very behind on your bills, your creditors may attempt to garnish your wages, repossess your vehicle, or shut off your utilities. This can all put immense stress on your life. By declaring bankruptcy, you can stop all of these collection efforts.
- Stopping creditor harassment – Once you file bankruptcy with a bankruptcy lawyer an automatic stay will be issued. This will keep creditors from contacting you multiple times a day about your debt.
- Improve credit – Indeed, your credit rating will initially take a hit after filing for bankruptcy. However, this is only temporary. You can start rebuilding your credit rating right away. Before you know it, your credit score will go up and you will be eligible for loans again.
Illinois Bankruptcy Statistics
According to the US Bankruptcy Court Central District of Illinois, there were 2,224 bankruptcies in Illinois’ central district in 2022. Many preparations go into filing for bankruptcy. Just like there are plenty of legal issues that can arise. Misunderstandings of the law or making mistakes in the process can affect your rights. Our team of professionals are there to help make sure you get the most favorable outcome and guide you through any questions that you may have.
Consulting a Bankruptcy Lawyer
A lawyer will assess your unique situation and determine if you are a good candidate for bankruptcy or not. He or she may also help you determine if Chapter 7 or Chapter 13 is the best option.
Our firm was established in 1938 and we have been serving clients for decades. Schedule a consultation with our trusted bankruptcy lawyer from Pioletti Pioletti & Nichols today.
Pioletti Pioletti & Nichols Peoria Bankruptcy Lawyer
Client Review
“Joe did my bankruptcy case and he was awesome! He was with me every step of the way. His secretary, Lea, is also great! She was very helpful and followed up on some paperwork and saved me some time. Definitely recommended!”
Heather Thomas
