TOP MISTAKES PEOPLE MAKE BEFORE TALKING WITH A BANKRUPTCY

LAWYER

“During this long wait, they often make mistakes that can potentially hurt their bankruptcy case or, at the very least,

places them in a worse financial position than had they consulted with a bankruptcy attorney earlier.”

PIOLETTI & PIOLETTI Bloomington, Illinois Bankruptcy Law Attorneys

Have you put off talking to a bankruptcy lawyer because you are scared of losing

property, you fear you cannot afford to file a bankruptcy or you simply do not

believe that bankruptcy is something you feel you can do because you do not

“cheat” your creditors? If so, you are not alone.

The good news is that bankruptcy is often the best solution for many people who

are facing serious financial problems. The bad news is that many people wait

too long before they consult with a bankruptcy attorney. During this long wait,

they often make mistakes that can potentially hurt their bankruptcy case or, at the

very least, places them in a worse financial position than had they consulted with

a bankruptcy attorney earlier.

As an experienced bankruptcy law firm, Pioletti & Pioletti can help you find the

best solution to your debt problems. We want to help you avoid costly mistakes

so that you can find a place of healthy financial well-being for you and for your

family. Filing bankruptcy is

not something that you

should avoid if it is truly the

best solution for your

financial problems.

Schedule your free

bankruptcy consultation so

that we can explain the legal

protections available to you

so you can understand how

bankruptcy laws are designed to help people just like you receive a fresh start

while finding protection from creditors.

Bankruptcy Mistakes to Avoid

It is easy to lose focus on what is important when you are struggling with

overwhelming debts, especially if you do not know about the legal protections

available for someone in your position. You worry about your future and your

family’s future so you try anything to make ends meet. The desire to protect your

family can lead you to make mistakes that can be costly and jeopardize your

future financial security.

Consulting with an experienced bankruptcy lawyer can provide you with the

assistance you need as you deal with financial problems. You can also get the

advice and counsel you need to avoid making mistakes that you may not even be

aware that you are making.

Borrowing Against the Equity in Your Home

In almost every bankruptcy case that we file, the equity in the debtor’s home is

protected by bankruptcy exceptions. In other words, the equity in your home

cannot be used by your creditors or the bankruptcy trustee to pay your debts.

Federal and state lawmakers have made it very clear that people should not lose

their home due to a financial crisis or debt problems.

Unfortunately, if you borrow

against the equity in your

home to pay your debts (i.e.

second mortgage, equity

line, etc.), you remove the

protection offered through a

bankruptcy filing. You may

have resolved your debt

problem by using the equity

in your home to pay

unsecured debts such as

medical bills, personal loans

and creditors but you have

now put your home in

jeopardy if you default on

the home loan. Instead of

using the protected equity in

your home, you may have

been able to discharge

most, if not all, of those debts through a bankruptcy filing.

Borrowing against the equity in your home is not a sound financial solution to

resolving a debt problem and can often make your financial situation worse.

Disposing of Assets or Property

Do not panic at the thought of losing your property if you file bankruptcy. Most

debtors who file bankruptcy in Illinois retain all of their property. Even in a

Chapter 7 liquidation, we see very few cases where debtors lose any of their

property. Unfortunately, if you panic and “give away” or “sell” your property to

friends or relatives prior to filing bankruptcy, you may create a situation where the

trustee can void the transfer and seize the property for the bankruptcy estate.

While “clean hands” transfers (property sold for the true market value of the item)

may be proper, you should always consult with a bankruptcy attorney first to

discuss your legal options and rights so you can make an informed decision and

avoid mistakes that could jeopardize your bankruptcy case.

Allowing Debt Collectors and Creditors to Bully You to Make

Payments

Bill collectors and creditors will use a variety of bullying tactics to force you to

continue paying debts that you cannot afford. They will say things such as, “Just

pay us a few dollars each month to keep this from going against your record” or

“If you can pay us a small

amount each month, we will not

need to turn this over to our

attorney for legal action.”

There are two problems with

giving in to these bullying

tactics. If you are having

financial problems, you must

prioritize the debts that you

must pay first. Essential items

such as housing, transportation, utilities, food and medical needs should come

before credit card bills. Bill collectors do not care about what is best for you –

they simply want you to pay them first. Do not let them bully you into doing

something that will harm you or your family’s well-being.

Second, bill collectors want you to continue to pay debts that may never go

away. If you are paying the minimum monthly payment, you may be reducing the

loan balance by a few dollars each month. Depending on what you owe, this

process could take decades. Do not let this happen to you. Call a bankruptcy

attorney and learn how you can make this stop so you can get out from under bill

collectors and their bullying tactics.

Filing a Bankruptcy without an Attorney

This may be one of the biggest mistakes people make. Bankruptcy law is

complex with many rules and regulations that must be followed in order to

receive a bankruptcy

discharge. While you can

file your own DIY

bankruptcy, you must

understand one very

important condition. The

court and judges will hold

you to the same standard

as an experienced

bankruptcy attorney. If

you make mistakes in

your bankruptcy filing, they will hold you accountable meaning you could lose

property or fail to receive certain protections for your failure to follow the property

rules and procedures.

The experienced bankruptcy lawyers of Pioletti & Pioletti not only have your best

intentions at heart they also understand bankruptcy law and know how to apply it

to your situation to achieve the best possible outcome in your bankruptcy case.

Do not trust something as important and your future financial security to an

inexperienced attorney. Hire a bankruptcy attorney that has the experience,

knowledge, dedication and commitment you need on your side as you work to

resolve your debt problems for a better and brighter future.

Contact Our Office for a Consultation with an Experienced Illinois Bankruptcy Attorney

Serving Our Clients with Sound Guidance and Unparalleled Dedication

The attorneys of Pioletti & Pioletti represent individuals who need experienced

bankruptcy attorneys. We help people who are struggling with financial problems

throughout McLean, Woodford, Tazewell and Peoria counties by providing

compassionate, competent legal services. Call our office at 309-938-4838to

schedule your free bankruptcy consultation.

When you need the assistance of an experienced bankruptcy attorney in Central

Illinois, call the knowledgeable and skilled attorneys of Pioletti & Pioletti. We are

dedicated to giving our clients exceptional service and support throughout the

bankruptcy process.

About Pioletti&Pioletti

Serving Our Clients with Sound Guidance and Unparalleled Dedication Pioletti&Pioletti is a full service law firm that represents individuals and businesses in a variety of areas of law including criminal defense, family law, bankruptcy, and estate planning. Pioletti&Pioletti has a long history in central Illinois. Our firm was founded in 1938 with a focus on estate planning, real estate, and business services. Today we are a versatile firm providing a group of services including criminal defense, family law, bankruptcy, and civil litigation representation. Our focus is on providing outstanding legal representation with unmatched personal service. We are available through email, 24 hours a day, 7 days a week. Pioletti&Pioletti 107 E. Eureka, Suite 1, Eureka IL 61530 Phone: +1 309-467-3213 Website: www.piolettilaw.com 121 N. Main St.,Bloomington IL 61701 Phone: +1 309-821-0246 Website: www.piolettilaw.com