Edwardsville Chapter 13 Bankruptcy Lawyer

Chapter 13 Bankruptcy Lawyer Edwardsville, IL

If you have steady income but can’t keep up with what you owe, Chapter 13 bankruptcy lets you reorganize your debts into a manageable repayment plan that lasts three to five years. You keep your property. You catch up on missed mortgage and car payments. And when the plan ends, remaining balances on qualifying debts get wiped out.

It’s a different approach than Chapter 7 liquidation. Chapter 13 is built for people who earn enough to pay something back but need the structure and protection that only a federal court order can provide.

Pioletti Pioletti & Nichols has over 80 years of combined legal experience handling bankruptcy, personal injury, family law, and criminal defense matters across Illinois. Our Edwardsville Chapter 13 bankruptcy lawyer understands the math, the procedures, and the negotiations required to build a repayment plan that actually works for your household. We offer free consultations to help you figure out your next step.

Why Choose Pioletti Pioletti & Nichols for Chapter 13 Bankruptcy in Edwardsville, IL?

Illinois Bankruptcy Knowledge That Runs Deep

Attorney Joe C. Pioletti handles individual and commercial bankruptcy cases, personal injury, wrongful death, workers’ compensation, and criminal defense. He earned his J.D. from Southern Illinois University School of Law in 2013 after completing his undergraduate studies at Eureka College. Joe is licensed in Illinois, admitted to the U.S. District Court for the Central, Northern, and Southern Districts of Illinois and the Northern and Southern Districts of Indiana, and is a member of the Illinois State Bar Association.

Chapter 13 cases have important details and elements that must be satisfied. The repayment plan has to satisfy the bankruptcy code, pass the trustee’s scrutiny, and still leave enough for you to pay rent, buy groceries, and keep the lights on. That requires an attorney who understands both the legal requirements and the practical reality of living on a budget during the plan period.

A Firm That’s Been Doing This for Decades

Our firm has served Illinois families and individuals for more than eight decades. We’ve walked clients through Chapter 13 filings in strong economies and weak ones. We know how the Southern District of Illinois administers these cases, what the local trustees expect, and how to draft a plan that survives confirmation without unnecessary revisions or delays.

Free Consultations With Straightforward Answers

We offer free consultations for Chapter 13 bankruptcy matters. During that first meeting, we review your income, debts, and assets to determine whether Chapter 13 is the right fit. Sometimes Chapter 7 makes more sense. Sometimes bankruptcy isn’t necessary at all. We’ll tell you either way. The consultation is about getting you accurate information, not selling you a service you don’t need.

What Our Clients Say

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“I highly recommend Attorney Irubiel Ferrer for any and all of your Bankruptcy questions. He has been extremely kind and helpful through my questions with my Chapter 13. He has given great advice; I am pleased with the service I have been provided. I want to mention Karla’s name in this as well. She too, has been very kind and helpful. Choosing to file a bankruptcy is a tough decision, one that can be anxious and unsettling. Mr. Irubiel Ferrer and Karla have been FANTASTIC! Thank you again for all of your help, all of your answers and all of the kindness!” – Amy Carter

Read more reviews on our Google Business Profile.

Types of Chapter 13 Bankruptcy Cases We Handle in Edwardsville

Chapter 13 is a flexible tool. We use it for clients in Edwardsville and across Madison County who are dealing with a wide range of financial pressures. The common thread is regular income and the desire to keep property while getting debt under control.

• Mortgage arrears and foreclosure prevention. If you’ve fallen behind on your mortgage, Chapter 13 allows you to catch up on missed payments over the life of the plan while continuing to make current payments. The automatic stay stops foreclosure immediately upon filing. This is one of the most common reasons people choose Chapter 13 over Chapter 7.
• Car loan restructuring. Chapter 13 can reduce the interest rate on a car loan, and in some cases, reduce the principal balance to the vehicle’s current market value if you’ve owned the car for more than 910 days. This is called a “cramdown,” and it can dramatically lower your monthly payment.
• Wage garnishment relief. A Chapter 13 filing stops active garnishments through the automatic stay. Instead of a creditor taking a chunk of every paycheck, you make a single monthly payment to the Chapter 13 trustee.
• Tax debt repayment. Priority tax debts that can’t be discharged still need to be paid, but Chapter 13 lets you spread them out over the plan period without additional penalties or interest from the IRS. Some older tax debts may even qualify for partial or full discharge.
• Second mortgage elimination. If your home is worth less than what you owe on your first mortgage, Chapter 13 may allow you to strip off the second mortgage entirely. The junior lien becomes unsecured debt and is treated like credit card balances under the plan.
• Co-debtor protection. Chapter 13 includes a co-debtor stay that protects cosigners on consumer debts. If a family member cosigned a loan, filing under Chapter 13 shields them from collection activity as long as the plan addresses the debt.
• Alimony and support arrears. Domestic support obligations can’t be discharged, but Chapter 13 lets you catch up on past-due child support or alimony payments over the plan period while staying current going forward.

Illinois Legal Requirements for Chapter 13 Bankruptcy

To file Chapter 13, you must be an individual with regular income and debts that fall within the current federal limits. As of April 1, 2025, those limits are $1,580,125 in secured debt and $526,700 in unsecured debt. If your debts exceed these thresholds, Chapter 11 may be the alternative.

Before filing, you must complete a credit counseling course from a U.S. Trustee-approved provider within 180 days of your petition date. A second course in financial management is required before discharge at the end of the plan.

Your repayment plan length depends on income. If your household income falls below the Illinois median for your family size, the plan can run for three years. If it exceeds the median, the plan generally must run for five years. No plan may exceed 60 months under 11 U.S.C. § 1322(d).

Illinois exemptions still apply in Chapter 13 cases, though they play a different role than in Chapter 7. Under the “best interest of creditors” test, your plan must pay unsecured creditors at least as much as they would receive in a hypothetical Chapter 7 liquidation. The Illinois homestead exemption of $50,000 per individual and the personal property exemptions under 735 ILCS 5/12-1001 are factored into that calculation.

Important Aspects of an Edwardsville Chapter 13 Bankruptcy Case

Building the Repayment Plan

The plan is the backbone of every Chapter 13 case. It specifies how much you pay each month, how long you pay, and how much each class of creditors receives. Secured creditors like mortgage lenders and auto lenders get paid through the plan or outside it. Priority creditors like the IRS and child support agencies must be paid in full. Unsecured creditors receive whatever is left from your disposable income after allowed expenses. Our Edwardsville Chapter 13 attorney builds plans that satisfy the code requirements and are actually livable.

The Automatic Stay

Filing activates an automatic stay under 11 U.S.C. § 362. Foreclosures stop. Garnishments stop. Lawsuits against you are frozen. Utility disconnections are halted. For people who’ve been losing sleep over a sheriff’s sale or a bank levy, the stay is immediate and powerful. It lasts for the duration of your case, provided you stay current on plan payments.

The 341 Meeting of Creditors

About 20 to 40 days after filing, the Chapter 13 trustee will conduct a 341 meeting to review your petition, schedules, and plan. The trustee will ask questions about your income, expenses, and property. Creditors can attend and ask questions, although most do not. We prepare our clients for this meeting so nothing catches them off guard.

Plan Confirmation

After the 341 meeting, the court holds a confirmation hearing. The trustee and any objecting creditors can raise issues with the plan. The judge will confirm the plan if it meets the requirements of 11 U.S.C. § 1325, including the best interest test, the feasibility test, and the good faith requirement. If objections arise, we negotiate modifications or argue the legal issues before the court. Most plans are confirmed with minimal adjustments when properly prepared from the start.

Living Under the Plan

For three to five years, you’ll make a monthly payment to the Chapter 13 trustee. That trustee distributes the funds to your creditors. During this time, you generally cannot take on new debt without court approval. You must file tax returns on time. If your income changes significantly, you may need to modify the plan. We stay available throughout the plan period to help with modifications, hardship issues, and any creditor disputes that arise.

The Discharge

Once you complete all plan payments and submit proof of the required financial management course, the court enters a discharge order. The Chapter 13 discharge eliminates remaining balances on qualifying unsecured debts. It also covers certain debts that would not be dischargeable in Chapter 7, making it a broader form of relief in some situations. From there, rebuilding your credit begins.

Contact Pioletti Pioletti & Nichols

If you’re behind on your mortgage, facing garnishment, or struggling under debts you can’t pay in full, Chapter 13 may offer the structure you need.

Our Chapter 13 bankruptcy attorneys in Edwardsville serve clients across Madison County and Southern Illinois. We offer free consultations and can typically meet within a few days.

Contact us for an honest assessment of whether Chapter 13 is the right path. If it is, we handle every piece of the filing and fight for a plan that keeps your family stable.