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Chapter 13 Bankruptcy Lawyer Kankakee, IL

What is bankruptcy?

Chapter 13 bankruptcy lawyer Kankakee, ILBankruptcy is a federal court process that allows individuals to manage their debts while protecting themselves from the harassment of creditors. Once you file for bankruptcy, all the procedures put in place to collect your debts will be temporarily stopped, including lawsuits. This “automatic stay” gives you and an experienced Kankakee, Illinois Chapter 13 bankruptcy lawyer an opportunity to navigate the ins and outs of your case without the added pressures of creditor harassment affecting the process. 

Are there different kinds of bankruptcy?

Yes, if you are filing as a consumer — as opposed to a business owner — you generally have two options for filing, Chapter 7 or 13.

Chapter 7 is commonly referred to as “liquidation bankruptcy.” This option is reserved for persons whose income is not substantial enough to pay off their debts in a timely manner. If you qualify for this type of bankruptcy, your eligible debts could be erased in as few as 90 days.

If you are not eligible to file for bankruptcy under Chapter 7, an experienced Kankakee, IL Chapter 13 bankruptcy lawyer from Pioletti Pioletti & Nichols can help you to file under Chapter 13. Chapter 13 bankruptcy allows you to create a repayment plan that makes your debts easier to manage. If you pay back your debts according to the terms of a 3-5 year repayment plan, your eligible debts will be erased once that term expires. 

What are non-exempt assets?

Each state has a different definition of what it means to have exempt assets. An asset can’t be sold for the benefit of someone’s creditors if it is classified as exempt by the Court. An experienced Kankakee, IL Chapter 13 bankruptcy lawyer can help to ensure that as much of your property as possible is considered exempt during the bankruptcy process. Generally speaking, a person’s exempt assets include:

  • Primary property
  • Vehicles, up to a certain monetary value
  • Household furnishings and appliances, up to a certain monetary value
  • Federal aid such as social security benefits, food aid, or unemployment insurance.
  • Insurance policies

What will happen to my home during this process?

Your home will most likely be protected in the case of filing for bankruptcy. In fact, if you are falling behind on your mortgage, then filing Chapter 13 can serve as an option to help you restructure your payments in a more feasible manner.

You do not have to face the daunting road of bankruptcy alone. When you work with an experienced Kankakee, IL Chapter 13 bankruptcy lawyer, you’ll benefit from the assistance of a legal professional dedicated to advocating for your interests. 

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 61530


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121 N Main St
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