League City, TX Bankruptcy Lawyer

Debt Relief Attorney in Galveston County

Bankruptcy is a very common legal proceeding, especially during times of economic difficulty. Between out-of-control housing costs and stagnating wages, more and more people and families are finding it impossible to pay off the debts they already owe, or they may need to take on more debt just to stay afloat. Businesses are also feeling the effects of this challenging economy. When people are struggling to afford the basic costs of living, they are less likely to spend money with businesses that provide non-essential goods and services.

Filing for bankruptcy can be a difficult decision to make, but it is often the best option for those struggling with debt they will not be able to pay back on schedule. Anything from credit card debt with high interest rates to unexpected medical expenses can send a family into debt they cannot recover from. Businesses may find that their startup costs were higher than expected, or they may experience lawsuit-related costs that negate their profitability. The Fealy Law Firm, PC is here to help each person or company choose the right type of bankruptcy and get out of debt fast.

What Debts Can a Person Discharge During Bankruptcy?

Most types of debt a person or family owes can be discharged in the bankruptcy process. Debts you can discharge include:

• Credit card debt
• Personal loan debt
• Payday loan debt
• Medical debt
• Some tax debts
• Past-due rent
• Past-due utility bills
• Auto accident settlements or judgments
• Repossession deficiency debt

Can I Discharge Student Loan Debt in Bankruptcy?

Normally, student loan debt is not discharged during bankruptcy. Unfortunately, student loan debt is a major source of debt for younger adults now that paying for college by working is not possible for most people. Student loans may be discharged in certain circumstances where the debtor has become disabled or is experiencing severe hardship that prohibits repayment.

What is the Difference Between Chapter 7 and Chapter 13 Bankruptcy?

Chapter 7 bankruptcy may result in the liquidation of personal or business assets. However, after non-exempt assets are sold off to repay as much of the debt as possible, the remaining debt will be discharged. In Chapter 13 bankruptcy, your assets will not be liquidated. However, you will be required to keep making monthly payments for a period lasting three to five years. This monthly payment will consume most or all of your disposable income—the income you do not need to meet your basic needs. After the repayment plan is completed, the remaining debts will be discharged.

Can I File for Bankruptcy Without Closing My Business?

Yes, some types of bankruptcy for businesses can allow your company to keep operating. Chapter 5 bankruptcy is generally used by smaller businesses that would like to stay open, while Chapter 11 is significantly more complex and is normally accessible only to larger corporations. These types of bankruptcy can rescue a business that has been faced with an unexpected expense, like a lawsuit, higher-than-anticipated startup costs, or the loss of capital due to a disaster.

What Are the Benefits of Bankruptcy?

Some benefits bankruptcy can offer include:

• Giving you options on how to manage your debt - If you do not file for bankruptcy, your only option is to keep trying to make payments while likely falling deeper into debt.
• Discharging most debts - No matter which type of bankruptcy you choose, the end result is complete freedom from debt.
• Stopping collections - Phone calls and letters from creditors must stop as soon as you file for bankruptcy.
• Breaking the cycle - If you keep going into debt in order to pay your existing debts, filing for bankruptcy will break this cycle. You will no longer need to use a personal loan to pay credit card debt, and then take out a payday loan to keep the personal loan debt from coming overdue.

Contact a League City, TX Bankruptcy Attorney

The Fealy Law Firm, PC is committed to stopping the cycle of debt for our clients. Attorney Fealy is a highly experienced Galveston County bankruptcy attorney who will help you choose the right bankruptcy strategy to get you out of debt. Contact us at 713-526-5220 for a complimentary consultation.