Drug Possession Lawyer Bloomington Illinois
Drug Possession Lawyer Bloomington Illinois
Bankruptcy Lawyer Bloomington IL
If you are a homeowner who is struggling financially and facing foreclosure, you may ask a bankruptcy lawyer in Bloomington, IL at Pioletti Pioletti & Nichols if it would be better to just let the foreclosure go through or if bankruptcy may be an option for you. Both of these choices can have a major negative impact on your credit rating. A foreclosure will stay on your credit report for seven years. Bankruptcy will stay on your credit report for either seven or 10 years (depending on which type you file).
At Pioletti Pioletti & Nichols, we are dedicated to helping clients with their financial issues. Whether you are facing foreclosure, vehicle repossession, wage garnishment, or other types of financial issues, we can help you determine what legal options will work for your situation.
While bankruptcy can certainly help those in grave need, there are downsides too. For example, bankruptcy may show up on background checks and credit scores for several years. A Bloomington, IL bankruptcy lawyer can help people decide whether the pros of bankruptcy may outweigh the cons.
Where to Start
Making the decision to declare bankruptcy is often not an easy feat. In most cases, a person has gone through many years of grueling financial ups and downs before finally realizing it is time to consider bankruptcy. The decision to file for bankruptcy must be made when feeling level-headed and not in a rush. After bankruptcy has been approved by the court, an “automatic stay” immediately is enforced. This means that creditors must halt contacting the debtor as a way to seek payment.
Those who are seriously looking at their finances and don’t see a way out besides bankruptcy, are encouraged to meet with a bankruptcy lawyer in Bloomington right away. Money trouble is one of the main causes of stress for people in today’s society, so we understand that you may be feeling a sense of urgency to find relief.
There are two main ways that a person may become bankrupt. The most common method is through voluntarily filing for bankruptcy. The second way is when creditors request to the court to order a person into bankruptcy. It is essential that you notify a member of our legal team if your creditors have been pushing the court to force you into bankruptcy.
Chapter 7 Bankruptcy
A significant number of people submit paperwork to operate under Chapter 7 bankruptcy. People who are unemployed, have accumulated large medical bills, have drastically overextended their credit limit, or have marital issues, can benefit from Chapter 7 bankruptcy.
Under this chapter, assets are liquidated as a way to pay off at least a large chunk of the outstanding debts. As an Illinois bankruptcy lawyer in Bloomington at Pioletti Pioletti & Nichols may explain to you, a potential benefit to this chapter is that people can basically “trade in” some of their assets as a form of payment. Unfortunately, this chapter may not be ideal for debtors who own a family home or other assets that he or she wishes to keep.
Chapter 13 Bankruptcy
Debtors who prefer to keep the property they have, may like the idea of filing under Chapter 13 bankruptcy instead. This chapter may also be referred to as “reorganization” bankruptcy, which permits the debtor to pay off their debts in a span of 3-5 years through a repayment plan. But, in order for this chapter to be beneficial it is vital that the debtor has consistent and reliable income. After the repayment plan term has finished, the remaining debt amount may be discharged.
If you are facing foreclosures, there are factors that your bankruptcy lawyer in IL can go over with you in order to help you decide what you want to do. If you want to save your home, then there are several steps you can take. If your mortgage arrears are one or two months, then the bank or mortgage company may be willing to work out a payment arrangement with you. Other options may be to restructure your loan or agree to a forbearance. This is when the lender agrees not to foreclose, and the borrower agrees to keep to a repayment plan with will eventually bring the mortgage current.
If none of these options will work, then you may be able to keep your home through bankruptcy. There are two types of personal bankruptcy, Chapter 7 and Chapter 13. In Chapter 7 bankruptcy, everything a person owns is liquidated. In Chapter 13, all debt is restructured. In order to stop a foreclosure, Chapter 13 would be the appropriate option.
Once your IL bankruptcy lawyer in Bloomington files your bankruptcy petition with the court, all debt collection ceases. This also includes any foreclosure proceeding that your mortgage lender has instituted. A payment plan is set up in order for you to pay all your creditors, including your mortgage.
Why Not Foreclosure?
Although bankruptcy may have a negative impact on your credit score, a foreclosure can cause a drop of approximately 300 points. Not only that, future lenders do not like to see foreclosures in your record, whereas a bankruptcy does not have such a negative effect. You have a much better chance of obtaining a future mortgage if you file for bankruptcy and not have a foreclosure.
A third option that may work is a short sale. A short sale is when the property is worth less than the balance you owe for your mortgage, but the mortgage lender agrees to waive your obligation to pay the balance owed after the sale.
And lastly, the mortgage company may agree to a deed in lieu of foreclosure. This is where you agree to turn the property over to the mortgage lenders do not have any more obligation.
Our team has been helping those in the Illinois area for many years. We can offer experience and information to help you decide what is best for your financial future. We invite you to contact us promptly to book your free consultation with a bankruptcy lawyer in Bloomington, IL at Pioletti Pioletti & Nichols before your debts continue to build.
“Friendly, and knowledgeable. Joe made the bankruptcy process less stressful. My wife and I are happy we went with him.”