What Are The Benefits of Bankruptcy?

The Positive Impact of Bankruptcy for Individuals and Families

While bankruptcy is often viewed as a negative thing that people may want to avoid at all costs, the truth is that bankruptcy can offer enormous benefits. Filing for bankruptcy can help you dissolve a business that is not working out without remaining in debt, or it can save a struggling business by allowing you to work towards making your company profitable while making manageable payments. Individuals and families can enjoy becoming debt-free in as little as a few months, or bankruptcy may allow them to pay off a portion of what they owe over a few years, after which the rest of their debts will be forgiven. Bankruptcy can enable individuals and families to come current with their house or car payments, stop foreclosures and repossessions, and assist with tax liabilities.

The Fealy Law Firm, PC views bankruptcy as a path to financial freedom. Attorney Vicky Fealy will help you create the bankruptcy plan that is right for you. We can guide you through the entire process so that you always have an aggressive advocate facing your creditors for you. We strive to take the stress out of bankruptcy.

Benefits of Bankruptcy for Individuals and Families

The major benefit of bankruptcy is escaping the cycle of debt. If you are in a situation where you feel that you may be in debt for the rest of your life, and you cannot answer your phone for fear that it is a debt collector, bankruptcy may be the escape you are looking for.

The benefits of bankruptcy, depending on the chapter you file under, include:

• Stopping collections efforts - As soon as we file bankruptcy on your behalf, all your creditors must cease collection activity immediately. You will be able to answer your phone or pick up your mail without fear that a creditor is demanding money you cannot afford to give them.
• Stopping foreclosures, repossessions, and garnishments - Any actions taken by creditors to collect debts or seize property will be paused while your bankruptcy case is ongoing.
• Immediate debt freedom through Chapter 7 - If you choose Chapter 7 bankruptcy with our guidance, your debt will disappear as soon as your case is completed, which can often take as little as a few months. While some of your assets might be liquidated to pay off as much of your debt as possible, you might be surprised at how much of your property you can keep.
• Fast debt freedom through Chapter 13 - With Chapter 13 bankruptcy, you will still be responsible for paying off a portion of your debt. The next three to five years may be difficult, as you will be expected to put most of your disposable income towards paying your debt. However, when the repayment period ends, any remaining debt will be forgiven.
• Consolidating debt - If you are trying to make monthly payments on multiple personal loans, credit cards, or hospital bills, you may quickly find that the situation has become unmanageable. Chapter 13 bankruptcy can help consolidate your debt into one monthly payment.
• Breaking the cycle of debt for good - Debt can become a vicious cycle. If you cannot make a payment on one of your debts in one month, you will accrue interest and penalties, causing your debts to increase even more. The amount you owe may never seem to go down at all. Bankruptcy can end this cycle for good and allow you to start anew.

Benefits of Bankruptcy for Companies

Many skilled businesspeople have had a company that has started to go bankrupt. Benefits bankruptcy may offer your business include:

• Getting a second chance through Chapter 5 bankruptcy (Chapter 11, Subchapter V) or Chapter 11 bankruptcy - If you can create a solid business plan that is likely to turn your business profitable, you may be able to restructure debts so that you can stay open while making payments.
• Dissolving an unviable corporation - New businesses often fail within the first year. This is normal, and it is likely not a reflection of your skill in business. Filing a liquidation bankruptcy can absolve your company of debt and give your creditors possession of your business capital, allowing you to walk away and start over.

Contact a Pasadena, TX Bankruptcy Attorney

The Fealy Law Firm, PC takes the fear out of bankruptcy and focuses on the benefits. Board-Certified Harris County bankruptcy lawyer Vicky Fealy will work with you to find the best possible solution to your debt. Contact us at 713-526-5220 for a complimentary consultation. We serve clients in Houston, Harris County, and the surrounding areas in Southeastern Texas, including Waller County, Fort Bend County, Brazoria County, Montgomery County, and Galveston County.