Chapter 13 Bankruptcy Attorney in Bloomington, IL
If you are you in debt and are unable to get out of it, then we suggest meeting with a Chapter 13 Bankruptcy Attorney in Bloomington, IL at Pioletti Pioletti & Nichols right away. Do you feel as if your financial burdens are leading to an overwhelming amount of stress and anxiety? Perhaps you are finding it difficult to concentrate on important things like your relationship, family, or job? If you can relate, it might be a good idea to discuss filing for bankruptcy with a member of our legal team.
The word ‘bankruptcy’ is often frightening for people; however, it’s actually not as bad as it may sound. We have found that bankruptcy has brought immense relief for individuals and businesses. To learn more about filing for bankruptcy, call Pioletti Pioletti & Nichols today.
How a Bankruptcy Lawyer Can Help Individuals
If you are an individual seeking to file bankruptcy, there are a few options available. An IL Chapter 13 Bankruptcy Attorney in Bloomington may recommend filing for either Chapter 7, Chapter 13, or another chapter depending on your circumstances:
- Chapter 7: This the most popular form of bankruptcy filed by individuals. It will require you to gather, value, and liquidate any non-exempt assets. The goal is to repay as much debt as possible, and in return, the bankruptcy court will forgive you of the remaining debt.
- Chapter 11: If you don’t file for Ch. 7 or Ch. 13, a lawyer might recommend filing for Chapter 11 bankruptcy. This is the most complex type of bankruptcy, but offers a broad range of flexibility.
- Chapter 12: This bankruptcy option is generally only available for farmers, fishing workers, and a few other select professions. It enables you to create a repayment plan that will ask you to pay some or all of your debt within a period of time.
- Chapter 13: Chapter 13 will allow you to resolve serious debt without having to liquidate your assets. This form of bankruptcy generally does not affect your credit score as seriously based upon the fact that you will have to pay some of your debt through a special repayment plan.
Alternative Options Bankruptcy
When you meet with a Chapter 13 Bankruptcy Attorney in Bloomington, your financial records and debts will be reviewed. It is certainly possible that we may advise against filing for bankruptcy. In this case, alternatives may be recommended, such as:
- Loan Consolidation: It may be possible to qualify for a loan from a bank. If so, you would pay off your debt, and then make direct payments to the bank.
- Negotiate Your Debt: Some creditors are willing to negotiate the terms of the debt. They may offer this to you if they believe it is the only way to receive some of the payment, versus nothing at all.
- Adjustment of a Loan: If you are concerned about the possibility of losing your car, home, property, or other assets, a bankruptcy lawyer may be able to talk with the bank or financial institution about readjusting the payments so they are more practical for your situation.
What Is Chapter 13 Bankruptcy And Is It Right For Me?
Chapter 13 bankruptcy has helped millions of Illinois homeowners escape foreclosure and gain financial security. Everyone’s situation is a little different, and whether Chapter 13 is the best fit for you depends on several factors. It is best to consult a Bloomington, IL Chapter 13 Bankruptcy Attorney to talk about your options. But, Chapter 13 bankruptcy is usually a good fit for the following:
- Those earning a regular income
- Homeowners who are facing foreclosure
- Those unwilling to lose certain assets such as a car, boat, or real estate
A Chapter 13 bankruptcy will help you re-organize your bills into 1 monthly payment. It will also stop foreclosures, repossessions, and garnishments immediately. Depending on the results of the bankruptcy means test, you will either have a 3 or 5 year repayment plan. While your debt won’t completely disappear, both the principal and interest that you owe will likely be substantially reduced. In order to maintain the protection for your home and other assets you will be required to make the monthly payments for the life of the plan. Accordingly, Chapter 7 might be a better fit for those who lack a steady source of income.
Talk With An Experienced Illinois Bankruptcy Attorney About Chapter 13
If you would like to find out more about whether Chapter 13 or Chapter 7 is right for you, call an experienced Illinois Chapter 13 Bankruptcy Attorney at Pioletti Pioletti & Nichols for a free, no-obligation consultation — call us today at (309) 467-3213 or send us a message online.
Frequently Asked Chapter 13 Bankruptcy Questions – Answered
Crushing debts can entirely consume a person’s life and can be incredibly stressful and debilitating, which is why it’s crucial to take action with a Bloomington, IL Chapter 13 bankruptcy attorney who can assist with developing a strategy for moving forward. While a person may be able to choose from several types of bankruptcy, it will be essential to choose the correct form of bankruptcy to file for based on the specifics of your situation. Our team at Pioletti Pioletti & Nichols knows that this decision shouldn’t be taken lightly and that those considering bankruptcy should carefully weigh the available options before making a decision, which is why our firm has taken the liberty of answering common questions that pertain to Chapter 13 filings.
What is Chapter 13 bankruptcy?
Chapter 13 bankruptcy is a form of bankruptcy that involves the debtor restructuring many of their debts. It’s essential to be aware that Chapter 13 is reorganizing debts so that they can reasonably be repaid. While this may seem like the optimal option for some, know that through this process, debts are typically paid back, although, in some situations, some debts may be eliminated later down the road. Chapter 13 can be advantageous for many, especially for people who make a steady income and have the means to repay much of their debts. It can also be the most viable solution for those who want to retain some of their assets, like their homes.
What is the difference between Chapter 13 and Chapter 7 bankruptcy?
As our Bloomington Chapter 13 bankruptcy attorney will explain, those filing for personal bankruptcy may consider two of the most popular bankruptcy solutions, either Chapter 13 or Chapter 7. While both may be viable options, it’s important to know that these filings have several key differences. While Chapter 7 may eliminate many of a person’s unsecured debts, filers must qualify; however, this process will require liquidating many of the debtor’s assets. Chapter 13 is necessary for debtors who do not qualify for Chapter 7, have a steady income, and can repay many of their debts through the restructuring process.
Can I keep my home through Chapter 13 filings?
One of the most considerable advantages of Chapter 13 is that a person may have the opportunity to keep their home and many of their assets. The automatic stay is granted when filing for bankruptcy, stopping all attempts to foreclose on a home and allowing the debtor to develop a plan to restructure their debts. However, to do so, the debtor must have the means to make their debt payments, catch up, and remain in good standing with their mortgage loan.
How long are payments for Chapter 13 filings made?
Unlike other forms of bankruptcy, like Chapter 7, Chapter 13 takes much longer to resolve because of the repayment plan developed with an attorney’s help. Depending upon the details of the plan that is created, repayments are often made over 3-5 years.
What is the best way to rebuild credit after bankruptcy?
Despite the crushing debts a person may be experiencing, another consideration for someone thinking about bankruptcy may be concerned over the impact that filing for bankruptcy will have on their credit and how they might begin to rebuild it post-bankruptcy filing. Know that while a person’s credit may take a hit upon filing, they can start the process of rebuilding their credit. While this will take time, by making fiscally responsible decisions in doing the following, debtors can start fresh, for example:
- Paying careful attention to credit reports
- Keeping up with payments
- Carrying very little debt (if any)
- Becoming an authorized credit card user on someone else’s credit card
- Consider a secured loan or a secured credit card
While the decision to file for bankruptcy shouldn’t be taken lightly, much of the time, enduring the process and reaching a resolution and relief from creditors is often met with relief. To learn more about how our Bloomington Chapter 13 bankruptcy attorney from Pioletti Pioletti & Nichols can assist, schedule a consultation as soon as possible.