Houston, TX Personal Loan Debt Lawyer

Debt Relief Firm Supporting Clients Facing Personal Loan Debt in Houston, TX

Personal loans can be helpful for those looking to bridge a brief gap between jobs, complete a home improvement project, or cover an unexpected expense in an emergency. However, when your situation changes, and you are not able to pay back the loan as you had planned, interest can quickly accrue and lead to spiraling debt. If you have amassed debt you cannot escape due to trouble repaying your personal loans, you may be able to discharge those debts through bankruptcy.

The Fealy Law Firm, PC can conduct a complete evaluation of your personal finances to determine whether filing for bankruptcy would be the best financial strategy for you. While many people fear bankruptcy, the reality is that it can be the easiest - or only - way to get out from under insurmountable debt. If you are struggling to pay back your personal loans, Attorney Vicky Fealy can help. Most personal loans, credit card debt, and medical debt can be discharged during the bankruptcy process.

Types of Personal Loan Debt Discharged in Bankruptcy

Individuals and families may use personal loans to overcome brief periods of hardship or otherwise unmanageable expenses. Most personal loan debt is unsecured, meaning that there is no collateral that creditors can claim if the debt is not paid. Some types of personal loans include:

• Debt consolidation loans - People who have multiple sources of debt with high interest rates may take out debt consolidation loans to reduce the amount of interest they must pay and to pay off their debts faster. This may be a step taken by those who are trying to avoid bankruptcy.
• Personal lines of credit - This type of personal loan is very similar to using a credit card. The borrower has access to funds they can withdraw and use as needed, but they must repay any borrowed funds with interest.
• Pay over time and buy now, pay later loans - This type of loan has become incredibly common with the rise of online shopping apps. Web-based sellers such as Amazon, Temu, and Shein, as well as many major retailers, offer buyers the chance to make monthly payments instead of paying up-front for goods. This is an attractive option for those seeking to make large purchases, such as new appliances, but it can lead to spiraling debt when multiple purchases are made this way.
• Payday loans - These loans often amount to predatory lending. They are generally used by people who need money to meet their basic needs until they receive their next paycheck. These high-interest loans can quickly send a family into insurmountable debt. People who have taken out one payday loan are very likely to need another due to the high interest rates.
• Cash advance apps - Some banking-style apps that are not technically banks allow account holders to borrow small sums of money in anticipation of their next payday. Borrowers often face very high interest rates that force them to continuously use this feature.

These types of personal loans are often used to cover large personal expenses, such as:

• Relocating a long distance and hiring professional movers
• Repairing a personal vehicle,
• Paying funeral expenses for a loved one
• Covering medical bills to ensure continuity of care
• Repairing, improving, or remodeling a home
• Keeping a family afloat when someone has lost a job
• Paying for emergency veterinary care for a pet
• Covering other emergency expenses in the absence of sufficient savings

Personal loan debt is often used for sudden, unexpected, and extraordinary expenditures that are often necessary. Fortunately, these debts can be addressed through bankruptcy, which can provide a person or family with a fresh financial start.

Contact a Houston Personal Loan Debt Attorney

The Fealy Law Firm, PC is skilled in helping people recover from extreme personal loan debt. Committed Pearland, TX lawyer Vicky Fealy will work with you to find the best way of resolving your personal loan debt. Contact us at 713-526-5220 for a complimentary consultation.