Pearland, TX Bankruptcy Lawyer

Debt Relief Attorney Serving Harris County

A small amount of debt can become an insurmountable burden very quickly, even when you are making good-faith efforts to repay as much as you can. Circumstances like a serious illness, the unexpected loss of a job, or getting divorced can all lead to debt that spirals out of control. Nearly anyone, even those who strive to be financially responsible, can easily find themselves in a position where it is no longer possible to pay off the full amount owed. Many business owners find themselves in this position as well, despite the strength of their business plans or the depth of their experience.

The Fealy Law Firm, PC can help both individuals and business owners find relief from debt through bankruptcy. Attorney Fealy will put your preferences and needs first when creating the right bankruptcy plan for you. You have options when it comes to your bankruptcy. If you cannot stand the idea of liquidation, there are ways to avoid it. If the idea of having to keep making monthly payments seems impossible, it may be possible to choose a type of bankruptcy that provides quick relief from debts. Attorney Fealy will work with you to find the best possible solution to your debt.

When Liquidation Bankruptcy Is the Best Option

Liquidation bankruptcy, formally called Chapter 7 bankruptcy, is what most people think of when they hear the term bankruptcy. However, there are a lot of myths about this type of bankruptcy filing. Many people believe that you will lose everything you own by filing under this section. This is not true. Quite a few of the things a person or family owns are exempt from liquidation because the law recognizes that some things are basic necessities. Things like your clothing, most of the furniture in your home, and your car (if its value is reasonable) are generally protected from liquidation. In fact, most Texas residents can complete a Chapter 7 bankruptcy without the need to liquidate any of their assets

If you do not own many assets beyond what you absolutely need in your day-to-day life, you may have very little to be afraid of in Chapter 7 bankruptcy. The major benefit of Chapter 7 bankruptcy is that once the bankruptcy process is complete, the rest of your debt will be immediately cleared away, and you will not have to keep making payments.

Options for Bankruptcy Without Liquidation

If you want to avoid the liquidation of your assets, you have other options. Individuals and families wishing to avoid liquidation can choose Chapter 13 bankruptcy. This type of bankruptcy essentially creates a partial repayment plan with a limited term, usually lasting between three and five years. However, those three to five years may be difficult.

The court will calculate how much money you need to meet your basic needs: housing, utilities, food, car and health insurance, and other necessities. Any money you bring in that does not need to be used to cover your basic needs will be expected to go toward repaying as much of your debt as possible. This means you likely will not be able to make "fun" purchases, spend much money going out with your friends, or enjoy hobbies that are not free or very low-cost. At the end of the repayment term, the rest of your debt will be eliminated.

Businesses have additional options. Smaller businesses with fewer employees may be able to choose Chapter 5 bankruptcy. This type of business bankruptcy is generally accessible to small business owners, and it offers the major benefit of being able to keep your business open. If you are trying to save a struggling small business after a financial setback, Chapter 5 may be your best option.

Larger corporations, and in some cases, individuals with high debt and significant assets, can also choose Chapter 11 bankruptcy. This is one of the most complex types of bankruptcy, as it involves creating a repayment and reorganization plan that must be approved by creditors.

Contact a Pearland, TX Bankruptcy Attorney

The Fealy Law Firm, PC is highly experienced in providing debt relief through bankruptcy for both businesses and families. Knowledgeable Pearland, TX bankruptcy lawyer Vicky Fealy will do all she can to help you choose the right type of bankruptcy for your situation. Contact us at 713-526-5220 for a complimentary consultation.