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Chapter 13 Bankruptcy Lawyer Kankakee, IL

Chapter 13 Bankruptcy Lawyer Kankakee, IL Chapter 13 bankruptcy lawyer Kankakee, IL

If you are considering Chapter 13 bankruptcy, speak with a Chapter 13 bankruptcy lawyer in Kankakee, IL from Pioletti Pioletti & Nichols. Having to consider bankruptcy is often a difficult and unfortunate decision, but may be necessary if loan and credit card payments have become too much for your budget to handle. Going through the process allows you to reduce serious debts, improve your overall financial situation, and move on. There are two types of bankruptcy to consider as an individual and it’s important to understand the differences between the two so you can decide which is best for your unique situation. This is where a Kankakee, IL Chapter 13 bankruptcy lawyer can help you. 

Chapter 13 Bankruptcy

Chapter 13 bankruptcy is a reorganization of your finances. Your property is not required to be liquidated, so long as you stick with the repayment plan that is mandated to you by a court. In this type of bankruptcy, the court determines how much of your debt you will be responsible for paying back, often over the course of three to five years. Once you’ve completed this portion, the rest of any unsecured debts, like medical bills or credit cards, will be “discharged,” meaning you are not required to pay it back.

To file for Chapter 13, your debts cannot exceed a certain monetary limit:

  • Unsecured debts (eg. medical and credit cards): $419,275 (as of 2019)
  • Secured debts (eg. mortgages and car loans): $1,257,850

A Chapter 13 bankruptcy lawyer in Kankakee, IL knows the benefits of this type of bankruptcy, other than keeping your property, is that it gives you the opportunity to catch up on your mortgage and car loan payments, helping you avoid foreclosure or repossession. The court may also decide to reduce the balance owed on some of these debts if needed.

Chapter 7 Bankruptcy

Chapter 7 bankruptcy, or liquidation bankruptcy, is often used by those who have a limited income and are unable to pay back some or all of their debts. This option is generally chosen by individuals who do not own a home and whose income is below the median level for your state. If your income is above this level, you will be asked to pass a “means test” which determines if you’re able to pay back some of your debts. If you are found to be able to pay back some of your debts, you will be required to file Chapter 13 instead.

The benefit of filing for Chapter 7 is that it allows you to discharge most debts quickly, often within three to five months. The unfortunate side of this type of bankruptcy is your trustee will be required to sell all of your nonexempt property to pay off as much of your debt as possible. This does not make up for any missed mortgage payments and will not stop a foreclosure or repossession.

Consult with a Chapter 13 Bankruptcy Lawyer in Kankakee, Illinois!

Filing for bankruptcy can be a complex process. It may not be clear which type you are eligible for, and which would benefit you the most while doing the least amount of damage. Consult with a Chapter 13 bankruptcy lawyer Kankakee, Illinois residents rely on from Pioletti Pioletti & Nichols to ensure your rights are protected, that the whole process goes smoothly, and that the court makes decisions in your best interest.

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EUREKA, IL LOCATION

107 E Eureka Ave, #1
Eureka, IL 61530

309-467-3213

24/7 live phone answering

BLOOMINGTON, IL LOCATION

121 N Main St
Bloomington, IL 61701

309-821-0246

24/7 live phone answering

KANKAKEE, IL LOCATION

2 Dearborn Square #1D
Kankakee, IL 60901

309-821-0246

24/7 live phone answering

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