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Who Is Eligible For Bankruptcy?

Published on April 8th, 2022

Filing for bankruptcy can be terrifying, and knowing how to move forward can be challenging, so the guidance of a bankruptcy lawyer in Peoria, IL, will be an essential next step. For those struggling with debts they cannot pay, bankruptcy may be the most viable option. While a debtor may believe that they will eventually be able to get on top of their debts, for some, the only possible option will be to choose bankruptcy. When at an impasse, where bankruptcy is the only solution, Pioletti Pioletti & Nichols can provide the necessary legal guidance when clients need it the most. While debt may feel crushing, know that there are plausible solutions that our team can support. Not only can we answer questions, but we can also provide guidance that will be imperative. 

Who is eligible for bankruptcy?

The thought of filing for bankruptcy may seem inconceivable; however, it may be the only option for moving forward and putting a stop to the crushing debts that are likely to be all-consuming. It’s important to note that once people choose this option, they often experience tremendous relief. Nearly anyone is eligible for bankruptcy, but qualifying for specific chapters will largely depend on the specifics surrounding the debtor’s financial situation. There are often two options for personal bankruptcy, Chapter 7 or Chapter 13. Chapter 7 is often the appropriate selection for those with an income below the state’s median threshold, while Chapter 13 is often for those with a higher income. 

What is the best way to determine the proper chapter of bankruptcy to file for?

Determining the appropriate chapter to file for begins with carefully evaluating the situation with a Peoria, Illinois bankruptcy lawyer. One of the most significant factors for bankruptcy is that the debtor must not have filed for bankruptcy in the past eight years. Once this threshold is met, a lawyer will recommend the most appropriate chapter to file for. Chapter 7 is more suitable for those with a more limited income or fewer assets to account for, while Chapter 13 is the right step for wage earners with more significant income who are looking to retain some or all of their assets, such as their property.  

Is there a way to save my home from foreclosure?

For some, one of the most critical needs is to save their home from foreclosure. Losing a home can be scary, but it’s possible to retain this property through Chapter 13 and the automatic stay. The automatic stay stops foreclosure proceedings, and Chapter 13 allows wage earners to reorganize their debts so that they can keep their property. 

What is the difference between self-representation and the representation of a lawyer for bankruptcy?

While it’s possible to represent yourself, also known as pro se, it’s not always recommended. Sometimes situations may be straightforward, and self-representation may be appropriate. In other cases, it’s best to have a lawyer represent the debtor. Legal representation can offer several advantages, especially when there are significant debts because bankruptcy doesn’t always eliminate all debts. Another reason to consider a lawyer is when debtors would like to file for Chapter 13 and are looking to retain their property. 

Pioletti Pioletti & Nichols are experienced with helping debtors determine the most appropriate form of bankruptcy chapter to file for and assist with how to choose an option that best suits their needs. Don’t hesitate to learn more with the assistance that our Peoria, IL bankruptcy lawyer can provide. 

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