schedule
consultation
107 E Eureka Ave, #1
Eureka, IL 61530
121 N Main St
Bloomington, IL 61701
309-467-3213 schedule consultation
schedule consultation

Chapter 7 Bankruptcy Lawyer Kankakee IL

Chapter 7 Bankruptcy Lawyer Kankakee IL Chapter 7 bankruptcy lawyer Kankakee IL

Those who are considering filing for Chapter 7 bankruptcy, should consult with a Kankakee, IL Chapter 7 bankruptcy lawyer at Pioletti Pioletti & Nichols first to ensure this is the right decision for your financial future. While many people believe that bankruptcy simply eradicates all of your debts so you can start fresh, this isn’t necessarily the case. Additionally, there may be some debts you still have to pay and there are potentially consequences for operating under a bankruptcy chapter. Lastly, it is crucial that you not only figure out whether bankruptcy is actually right for you, but that you file for the correct chapter.

Here, we have talked further about the difference between chapter 7 and 13 bankruptcy, which are the two most commonly used chapters used by the average person. If you have any further questions, our team is happy to speak with you.

Chapter 7 vs. Chapter 13
Small business owners and individuals usually apply for Chapter 7 or Chapter 13 bankruptcy. Chapter 7 may be referred to as “liquidation” and Chapter 13 as “reorganization” or “wage earners” bankruptcy. A Kankakee, Illinois Chapter 7 bankruptcy lawyer can go over the pros and cons of each chapter with you to help figure out which would be best for you given your current financial struggles and status. 

Chapter 7 Pros: 

  • Most forms of unsecured debt will be discharged
  • It is fairly quick to complete, taking around 3-4 months on average
  • Debtors may be able to keep a portion or the entirety of their property
  • There is often a heavy amount of paperwork to fill out and submit, but can be done with the support of our dedicated legal team

Chapter 7 Cons: 

  • The debtor may want to sell nonexempt property as a way to pay creditors
  • Higher-income debtors may not be eligible to operate under this chapter, as it is only available for those who make less income than the state median

Chapter 13 Pros: 

  • Debtors may appeal to the idea of reorganizing their debts so they can pay at least in part or the full amount through a repayment plan
  • After the repayment plan duration has concluded, the remaining unsecured debt may be discharged
  • Property is not liquidated under this chapter
  • There is no income requirement, but the secured and unsecured debt must total below a certain amount
  • Homeowners may be able to stop a foreclosure on their home by operating under this chapter

Chapter 13 Cons:

  • The repayment plan may last 3-5 years depending on income level
  • This chapter does require that the debtor has consistent and reliable income
  • The debtor must create and agree to a repayment plan and have it approved by the court, which can be time-consuming and stressful

Owning a Business and Filing for Bankruptcy

When you are struggling with your business, you may be wondering what your options are. Filing for bankruptcy may seem like a last resort, but when you do file, you may soon realize that it has the power to help you and your business begin achieving more. Filing for bankruptcy can be complicated when you own a business, but an IL Chapter 7 Bankruptcy Lawyer in Kankakee at Pioletti, Pioletti & Nichols is here to help you make sense of the details. We want you and your company to thrive, and filing for bankruptcy can be an option that helps you do this.

When you are considering filing for bankruptcy, there are certain things you should consider. Our attorneys have compiled a list of questions you should ask yourself when you consider filing for bankruptcy and how that will impact your business. Here are a couple examples: 

How much money is your business making?

This is an important question to think about, because you likely started your business motivated to sell and make money. However, when a business starts losing money, you want to ask yourself if it is worth keeping your business open or not. When you ponder this question, take a step back and evaluate why your company might be losing money. Is it consistently losing money, or are there temporary factors that are causing you to experience financial loss that you know you can bounce back from? Know when it is time to let go of a business that you are throwing money away on.

Are you liable for the debts of your business?

When it comes to debt liability, if you are responsible for these debts, you should speak with a Kankakee Chapter 7 Bankruptcy Lawyer about whether it is best to keep your business open or not. It could be best to do so while you are discussing options with the different creditors. If you do shut down the business while you are liable for the business’ debts, you could be putting yourself in a position where creditors start coming after your personal assets if you owe them.

Determining the Type of Bankruptcy to File

When you are determining the type of bankruptcy that you wish to file for your business, you have a few options. It is always best to consult with us first so you know you are getting some of the best advice possible regarding your specific situation, and which type of bankruptcy can be most helpful.

  • Chapter 7: When filing for Chapter 7 bankruptcy, you should expect your business to shut down once you have sold the assets so you have the opportunity to pay off the creditors.
  • Chapter 11: Filing for this type of bankruptcy can help you both stay in business and reorganize your debts.
  • Chapter 13: Filing for this type of bankruptcy means you may be able to include your business debts as well as your personal debts in your bankruptcy filing.

How Pioletti, Pioletti & Nichols Can Help You

As you can see, there are several pros and cons to Chapter 7 and Chapter 13 bankruptcy. Filing for bankruptcy should not be taken lightly. We can look at your debts and earnings to advise whether bankruptcy is right for you and whether it may benefit or hinder your financial future. We highly recommend talking with a Kankakee Chapter 7 bankruptcy lawyer in IL from Pioletti Pioletti & Nichols before making any final decisions. 

 

Client Review

“Mike did an excellent job helping me work through an expungement hearing. Very professional, well prepared, and treated me like family. Would highly recommend.”
D C
Client Review

We are Members of

Joe and his associates made the process of my bankruptcy very easy and treated me with respect. The laid out the timeline of process, communicated clearly of what I needed to do and everything went accordingly. I highly recommend them.

Rizz

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

Contact Us Today!