Chapter 13 Bankruptcy Lawyer Bloomington IL
There are many people in this country who struggle with some kind of debt, from credit cards, student loans, medical expenses, mortgages, car loans, and other financial obligations. Often the only way to get back on solid financial footing is to seek the assistance of a Chapter 13 bankruptcy lawyer in Bloomington Illinois to file for bankruptcy.
How do people get caught in overwhelming financial debt and how can you avoid falling into it after bankruptcy to ensure you don’t end up back in the same place? A Bloomington IL Chapter 13 bankruptcy lawyer from Pioletti Pioletti & Nichols offers these tips:
- One of the biggest mistakes people make is to use one debt to pay off another debt. For example, using cash advances from one credit card to pay off another bill or using a credit card to pay a bill directly, such as a car payment or utility bill. You should also keep household expense funds, like money for utilities or rent, strictly for household expenses. Never use the rent money to pay the credit card company.
- Pay off the bills with the highest interest rate first. Many people pay off smaller bills first, thinking that they are crossing them off the list one at a time. But high-interest rates, especially on a large balance, can eat up the payment you make each month, with the result of that balance never going down.
- The same goes for only making the minimum payments, especially on credit cards. Using a credit card calculator can really give you a comparison of how much more you end up paying when you only pay the minimum. Instead, try to make as much of a bigger payment each month.
- And although you don’t have to go into great detail, when you do hit financial bumps in the road, it is a good idea to have a family meeting to discuss how things may be a little bit tight for a while. Let your children know that there could be some things that may have to be cut from the budget until you get back on your feet financially. They may even have some ideas that will help save money, which helps turn the situation into a good learning experience, as well as one where everyone is working together.
If you are struggling financially and are considering filing for bankruptcy, but are unsure if this is the right direction for you, there are several questions you can ask yourself to help determine the direction you should go in.
One of the first questions you should ask yourself is where exactly do you stand financially. Write down everything that you owe, as well as what the monthly payments are for each bill. Then write down what you can honestly afford as a monthly payment for each of these debts. It’s also important to include what your monthly living expenses each month also. Items like rent or mortgage payments, food, childcare expenses, utilities, and other necessary living expenses.
Once you have figured out where you are financially, it is also important to ask yourself where you are emotionally and how your debt is affecting you. Are you having trouble sleeping or eating? Is your marriage suffering because you and your spouse are fighting over finances a lot? Stress and worry can also affect our physical health as well as our emotional health.
It does take time to rebuild your credit after bankruptcy and there are future plans you may have to put on hold until your credit is in better shape. Ask yourself if you see realistic prospects in the foreseeable future that will get you out of the financial hole you are currently in? Which will take longer to repair your credit – a couple of years of rebuilding after bankruptcy or continuing to pay your bills the way you are now?
Speak with a Bloomington IL Chapter 13 Bankruptcy Lawyer
One of the most informed people who can answer your questions about whether or not bankruptcy is a solution to your financial situation is an experienced Chapter 13 bankruptcy lawyer Bloomington IL from Pioletti Pioletti & Nichols. The attorney will go over all your options, including the two different types of bankruptcy there are, and which one might be right for you.
“We needed legal assistance in Illinois while living in another state – after calling what seemed like almost all the attorneys in this specific county, we finally found Michael Nichols, who not only gave us a very reasonable rate, but worked with us remotely. I was impressed with how well he stayed in touch throughout the process, without us having to follow-up with him. Our case went smooth and he was willing to do what needed to be done to get us the result we wanted. Thanks Michael!”