Bankruptcy Lawyer Bloomington IL
For a free bankruptcy consultation call 309-467-3213
If you are struggling with unmanageable debt, bankruptcy could provide the debt relief you need. While bankruptcy is not right for everyone, it has helped millions of Americans find hope for a better future. Our bankruptcy lawyers serve people across central Illinois including Bloomington, Peoria, Washington, and Pekin.
For a free initial consultation with a Bankruptcy lawyer in Bloomington IL call us at 309-467-3213 or email us at info@piolettilaw.com.
There are two basic types of bankruptcies, chapter 7 and chapter 13. A chapter 7 is the classic bankruptcy that most people think of where your debts are discharged and you are left with a clean slate. A chapter 13 is a debt repayment plan where your debts are reorganized into one monthly payment.
We can help you determine which type of bankruptcy is more appropriate for your situation.
CHAPTER 7 – A CLEAN SLATE WITH DEBT ELIMINATION
Filing for any type of bankruptcy, including Chapter 7 bankruptcy, will immediately stop all collection actions by creditors including garnishments, repossessions, letters and phone calls. This is what is known as the automatic stay. A Chapter 7 is the most common form of bankruptcy and is designed to get people out from under an overwhelming load of debt. It is the quickest form of bankruptcy and will eliminate: credit cards, personal loans, repossessions, judgments, law suits, medical bills, utility bills, payday loans, wage deductions, and garnishments. As soon as you file, all the collection letters and calls end immediately.
In almost all cases people who file Chapter 7 get to keep all their property. This is due to the many Illinois exemptions that are available including:
- $15,000 Homestead Exemption – $30,000 for a married couple
- 100% exemption for all retirement accounts including 401k, IRA, and pension
- $2,400 toward the equity in a vehicle – $4,800 for a married couple
- $1,500 in tools and equipment used for work
- Up to $4,000 in other personal property – $8,000 for a married couple
CHAPTER 13 – DEBT REPAYMENT AND REORGANIZATION
Chapter 13 bankruptcy involves the consolidation and reorganization of all your debts into one monthly payments. Chapter 13 can be used to avoid foreclosure or the repossession of a vehicle. For people whose income is too high to qualify for a Chapter 7 bankruptcy, a Chapter 13 bankruptcy will still eliminate most all of your unsecured debt or reduce your overall debt load significantly. If you are facing a mortgage foreclosure, repossession, high interest credit cards, payday loans, or wage deductions, a Chapter 13 bankruptcy can help you.
WE PROVIDE COMPREHENSIVE LEGAL COUNSEL IN ALL BANKRUPTCY AREAS
FAQ: Filing for Bankruptcy
All too often, people who could benefit from the protections and opportunities bankruptcy affords shy away from this process because there is simply too much misinformation about what bankruptcy entails swimming around in the water supply. Before you make any assumptions about whether filing for bankruptcy may or may not be a good debt-relief option for your situation, connect with an experienced bankruptcy lawyer Bloomington, IL residents trust. The knowledgeable legal team at Pioletti Pioletti & Nichols can separate fact from fiction so that you can make truly informed choices about your options.
Will filing for bankruptcy ruin my credit forever?
After you file for bankruptcy, your credit score will take a temporary hit. But, while it is true that your bankruptcy filing will remain on your credit report for several years, creditors will treat that notation with decreasing significance over time. What matters to creditors is whether it seems like you’re responsible enough to repay your debts. If, after filing for bankruptcy and achieving a relatively fresh financial start, it is apparent that you’ve seized upon that opportunity and become incredibly financially responsible, your bankruptcy may empower you to have far stronger credit over time than you did before.
How long will I be protected by the automatic stay?
The automatic stay will take effect as soon as your bankruptcy paperwork is filed and will remain in effect until your case is either fully resolved or closed for some reason. The automatic stay prohibits most collection activities from taking place while a bankruptcy case remains pending. Meaning, virtually any creditor to whom you owe money will need to stop asking for repayment and may need to stop garnishing your wages or pursuing legal action against you until the automatic stay is no longer in effect.
Do I need a lawyer to file for bankruptcy?
Unless you’re filing an unusually straightforward Chapter 7 case and are eligible to take advantage of free filing services like Upsolve, you’ll need to work with a Bloomington bankruptcy lawyer to successfully navigate the ins and outs of the bankruptcy process. The stakes are high in a bankruptcy case, as a successful discharge order could empower you to move forward with a fresh financial start. Conversely, a rejection of your bankruptcy petition could leave you in a tougher financial position than you’re already in. Working with an experienced bankruptcy lawyer will place you in the best possible position to achieve success.
Is Chapter 7 or Chapter 13 a batter option?
The kind of bankruptcy that will work best for you is dependent upon your unique circumstances. If you don’t earn much income, you primarily owe creditors of unsecured debts, and you don’t own much luxury property, filing for Chapter 7 is likely going to be your best bet. If you earn too much money to qualify for Chapter 7 bankruptcy relief, you’re struggling with secured debt, and/or you own some expensive property, filing for Chapter 13 is likely going to be a superior option for you.
How long does filing for bankruptcy take?
Repaying a Chapter 13 debt relief plan takes between 3-5 years. Most Chapter 7 cases are resolved within a matter of months. In either event, working with a dedicated Bloomington bankruptcy lawyer at Pioletti Pioletti & Nichols will help to ensure that your filing process benefits from an approach that is as efficient and effective as possible.
CALL US TODAY FOR A FREE CONSULTATION
We have helped hundreds of people obtain financial relief through bankruptcy. We make ourselves accessible to our clients nearly 24/7 via email, phone, and even text message communication. We strive to be there for our clients and ensure that they receive the best and most professional representation possible. Call the experienced bankruptcy attorneys in Bloomington IL at Pioletti Pioletti & Nichols today by calling 309-467-3213 or email us at info@piolettilaw.com.
