Cypress, TX Bankruptcy Lawyer

Houston Area Debt Relief Attorney

Bankruptcy may be an option for debt relief if you owe more money than you can realistically pay off. As soon as you file for bankruptcy, all collection efforts must stop immediately. You will stop getting letters, threats of liens, and constant phone calls as soon as your attorney has filed your declaration of bankruptcy with the court. As you prepare for bankruptcy, you have choices. You can choose Chapter 7, which resolves your debt immediately but may require you to turn over some of your assets to pay some of your debt. Alternatively, you can choose Chapter 13, which means that you will continue to make monthly payments for a few years before the rest of your debt is cleared. Business owners may have additional options.

The Fealy Law Firm, PC is dedicated to helping people and businesses find relief from insurmountable debt through bankruptcy. Experienced attorney Vicky Fealy will assess your financial situation and determine what type of bankruptcy is likely to benefit you the most. She will consider factors like what assets you have now, what assets would be protected from liquidation, or, if you are a business, whether you want to keep operating.

Common Reasons People File for Bankruptcy

Debt can sneak up on a family that has gone through a difficult time. Common reasons people and families find themselves facing debt they cannot overcome include:

• Loss of a job - When an adult who works to support his or her family abruptly loses a source of income, the financial impact can be catastrophic. Often, families in these situations will need to rely on credit cards or personal loans to meet their basic needs until the breadwinner can find a new job. Even if new employment is found rather quickly, the amount of debt that can pile up in a month or two can be overwhelming.
• Serious injury or illness - Medical bills are one of the leading causes of insurmountable debt. This type of debt can be extremely frustrating, because there may have been nothing you could have done to avoid this situation. Even if you had health insurance, needing to see an out-of-network provider in an emergency or to be hospitalized can lead to thousands of dollars in charges.
• High interest rates - Missing a single payment on a loan or credit account with a high interest rate can cause debt to rapidly increase past the point where you could pay it back. Payday loans are notorious for having incredibly high interest rates that the lower-income workers who commonly need them simply cannot afford to pay.

Why Businesses May Need to File for Bankruptcy

Businesses may have some similar reasons for needing to file for bankruptcy. Reasons corporations may need to take advantage of bankruptcy include:

• Becoming obsolete - Technological developments and changes in consumer buying patterns may have caused a business that was successful 30 years ago to no longer be in demand. For example, consumers now are less likely to have appliances repaired, and they are more likely to replace them, potentially leading to financial difficulties for repair companies.
• Higher than anticipated start-up costs - Even if you planned well, you may have found that there were unexpected expenses associated with getting your small business operational.
• Lawsuits - Companies that are sued in their first few years of operations often struggle to stay afloat, even if they are not found liable but must still pay legal fees.
• Economic downturns - Even if consumers like your business idea and would spend money with you if they could, an economic crash can force consumers to stop spending money on non-essentials like dining out or recreation.
• Not becoming profitable as quickly as anticipated - Many businesses take a year or more to begin turning a profit, and debts may pile up in the meantime.

Contact a Cypress, TX Bankruptcy Attorney

The Fealy Law Firm, PC is experienced in helping both individuals and businesses obtain lasting debt relief through bankruptcy. Skilled Houston area lawyer Vicky Fealy will work with you to help find your best path to relief from debt. Contact us at 713-526-5220 for a complimentary consultation.