top mistakes people make before talking with a bankruptcy lawyer

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  1. 1. 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
  2. 2. 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.
  3. 3. 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 familys 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.
  4. 4. 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 debtors 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.
  5. 5. 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.
  6. 6. 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
  7. 7. 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 familys 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
  8. 8. 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.
  9. 9. 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.
  10. 10. 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: 121 N. Main St.,Bloomington IL 61701 Phone: +1 309-821-0246 Website:


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