Pasadena, TX Bankruptcy Lawyer

Debt Relief Attorney Serving The Woodlands

When unexpected circumstances arise, debt can quickly go from manageable to unmanageable. At The Fealy Law Firm, PC, we frequently see clients who were responsible with their money and lived within their means but encountered a difficult situation like a serious illness that caused medical bills to pile up or an unanticipated layoff leading to missed credit card payments. Businesses can face similar financial setbacks that may arise unexpectedly. A small business could get sued in its first year of operation, or it could be impacted by a sudden change in demand for its services, like what happened to many businesses during the COVID-19 pandemic.

The Fealy Law Firm, PC is here to help companies and individuals alike find a way out of debt through bankruptcy. Individuals and families can choose between Chapter 13 reorganization bankruptcy and Chapter 7 liquidation bankruptcy depending on their needs and preferences. Corporations can choose liquidation, or they can select Chapter 5 or Chapter 11 if they wish to keep operating and work towards becoming profitable. Attorney Vicky Fealy will work with you to determine the type of bankruptcy that best serves your goals.

Debts Individuals Can Discharge During Bankruptcy

Most debts an individual or family owes can be discharged through bankruptcy. While Chapter 7 may require the liquidation of assets, it allows debts to be discharged quickly. Chapter 13 will require a three-to-five-year repayment plan, after which any remaining debt is discharged. Types of debt you can likely discharge during the bankruptcy process include:

• Credit card debt - This is a major source of personal debt. Due to high interest rates, it is shocking how quickly credit card debt can become insurmountable. You may have been making minimum payments for quite a while without ever seeing the balance go down.
• Payday loan debt - These loans can be quite predatory. People who are between jobs or who need a little extra money until their next paycheck arrives often use these loans. However, the interest rates are almost always very high. Seeing the loan principal plus the interest come out of your paycheck may mean that you run out of money before payday, requiring another payday loan and leading to spiraling debt.
• Medical debt - The frustrating thing about medical expenses is that they are often beyond your control. Hospital care can be incredibly costly, even if you have insurance. Few families can afford to pay out-of-pocket to treat a major injury or illness. Another complicating factor is that working adults often lose income while they are sick or while they are caring for a sick child.
• Personal loan debt - These loans can be excellent for those who are looking to start a home improvement project or who need to finance an unexpected emergency expense. However, when circumstances prevent you from repaying a loan on schedule, the interest rate may cause the debt to grow exponentially.
• Back taxes - If you are having IRS problems, you may be able to discharge some back taxes you will not be able to pay.

Debts Businesses Can Discharge in Bankruptcy

Businesses that wish to keep operating may have the additional options of Chapter 5 or Chapter 11 bankruptcy. Debts that corporations and small businesses can discharge generally include:

• Business loan debt - Not becoming profitable as quickly as you expected can make repaying business loans on time impossible.
• Business credit card debt - Many corporations have a company credit card used to cover expenses the company does not have the capital to cover, but these debts can add up quickly.
• Unpaid leases and contracts - Businesses that are not earning what they expected may be indebted to a landlord or contractor, and they may face liens if they fail to make payments as required.
• Some lawsuit judgments - Being sued can quickly turn even a profitable business into one that owes an insurmountable debt.

Contact a Pasadena, TX Bankruptcy Attorney

The Fealy Law Firm, PC is committed to helping people and businesses discharge their debts during bankruptcy. Attorney Fealy will work with you to choose the right bankruptcy strategy. Contact us at 713-526-5220 for a complimentary consultation.