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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. 

What Is a Bankruptcy Exemption?

Many Americans have hesitated to file for bankruptcy because they have been given the misinformation that they’ll be required to sell all their property to repay their creditors before their debts can be discharged. Thankfully, this misinformation is just that. It is true that some unusually expensive property may be at risk of being sold by the trustee assigned to a debtor’s bankruptcy case so that the debtor’s creditors can be repaid from the proceeds of the sale. But the fact of the matter that most Americans who are eligible to file for Chapter 7 bankruptcy (only low-income filers can file for Chapter 7 bankruptcy, which is the consumer bankruptcy process that carries the greatest risk of having one’s personal assets sold to pay creditors) don’t own much unusually valuable property. As a result, they are able to claim enough exemptions to keep most, if not all, of their property safe from the risk it will be sold to repay their creditors. It is partially for this reason that it’s important to consult with an experienced Kankakee, Illinois Chapter 7 bankruptcy lawyer from Pioletti Pioletti & Nichols before filing for Chapter 7 bankruptcy. Our experienced legal team can help to ensure that as much of your property as possible is protected from the risk of being sold by your case trustee. 

Bankruptcy Exemptions – The Basics

What exactly does it mean to claim an exemption? Depending on the state you’re filing for bankruptcy in, you’ll be permitted to apply state-specific or federal exemptions to your property. Each state’s exemptions are unique, so it’s important to discuss the specifics of your state’s exemption model with your Kankakee, IL Chapter 7 bankruptcy lawyer so that you know exactly what to expect from this process. Once you give the Court an accounting of all the property you own (usually outlined in a general way – for example, you’ll confirm that you own clothes and will estimate their worth according to garage sale value, you won’t have to tell the Court you own 8 pairs of underwear with Mickey Mouse on the rear) you’ll identify exemptions to apply to that property. As long as kinds of property you own, and the value of that property, falls within the exemptions allowed by the Court, it will be treated as exempt. No exempt property can be sold by a bankruptcy trustee.

Legal Assistance Is Available

Identifying and applying for as many exemptions as possible is an important part of the bankruptcy process. Without experienced legal guidance from a Kankakee, IL Chapter 7 bankruptcy lawyer, you may miss out on the opportunity to take advantage of as many exemptions as you can. This can leave your property and assets vulnerable to sale by your bankruptcy trustee. To avoid losing ownership of your hard-earned property, please consult with a member of our legal team as early in the bankruptcy process as possible. Once we learn more about your unique financial circumstances, we can set to work protecting your property and obtaining comprehensive debt relief on your behalf. Bankruptcy can provide you with a fresh financial start. Please allow our Kankakee, IL Chapter 7 bankruptcy lawyer team to help you take advantage of everything that the bankruptcy process can offer you for the better. We look forward to speaking with you.

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EUREKA, IL LOCATION

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Eureka, IL 61530

309-467-3213

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Bloomington, IL 61701

309-821-0246

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Kankakee, IL 60901

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