Bankruptcy Lawyer Peoria, IL
Bankruptcy Lawyer in Peoria, IL
Any bankruptcy lawyer in Peoria, IL should know the difference between Chapter 7 Bankruptcy and Chapter 13 Bankruptcy, including our experienced bankruptcy 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? 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 popular proceeding types for individuals looking for relief. Chapter 7 and Chapter 13 bankruptcy can help but work in different ways. Discover the key differences in these two bankruptcy types before proceeding.
Chapter 7 Is About Liquidating Debt
Some people who own substantial assets may find themselves going through Chapter 7 bankruptcy. This type of 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. A Peoria, Illinois bankruptcy lawyer from Pioletti, Pioletti & Nichols can help you figure out which exemptions apply to your situation.
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 down. 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 from 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 a bankruptcy lawyer for advice. We understand that struggling with unmanageable debt can be tiresome, confusing, and overwhelming. Our lawyers can help you start over with a clean slate through debt elimination. Pioletti, Pioletti & Nichols’ bankruptcy lawyers in Peoria, IL have the know-how and experience to help decide whether Chapter 7 or 13 will provide greater relief.
Will I Lose EVERYTHING By Filing for Bankruptcy?
A bankruptcy lawyer in Peoria, Illinois can 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. Whatever the cause, there’s a chance you’ll have to liquidate some (or most) of your assets – but a bankruptcy lawyer in Peoria, IL can help you keep what matters most.
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 hold 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 a bankruptcy lawyer 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.
Declaring bankruptcy is never something that should be done lightly. There are long-lasting consequences that a lawyer can explain to you, and there is plenty of legal red tape that a lawyer can navigate for you. When you reach out to Pioletti Pioletti & Nichols, you get a bankruptcy lawyer in Peoria, IL, that you can trust – reach out to us today.
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 a bankruptcy lawyer in Peoria, IL doesn’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 because 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 can 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.