Prairie View, TX Bankruptcy Lawyer

Attorney for Personal and Corporate Bankruptcy in Texas

Our law firm sees bankruptcy not as any type of failure, but as a chance for a new financial start after circumstances often beyond your control put you in a situation where you cannot possibly pay off your debt. Many of our clients are in this position because they went through a serious illness and could not pay their medical bills or work, forcing them to use personal loans or credit cards to survive. Others have struggled with mental illnesses that interfered with their ability to manage spending and debt. Our business owner clients often had a good business idea that simply did not become profitable as quickly as they needed it to.

The Fealy Law Firm, PC is here to help you find freedom from crushing personal or business debt. Whether you are struggling with debt from predatory payday loans, or the startup costs of your business were far more than anticipated, we can help you find relief from debt collectors, IRS problems, and constant calls from creditors. Attorney Vicky Fealy is highly experienced in helping people and companies use bankruptcy to end climbing debt, and she will counsel you to help you choose the right form of bankruptcy for your situation.

Choosing the Right Type of Personal Bankruptcy

Most people filing for bankruptcy will have two choices: Chapter 13, or Chapter 7. In rare instances, certain individuals with large amounts of debt and complex assets may be able to choose Chapter 11, although the other two types of bankruptcy are far more commonly used.

Chapter 13 bankruptcy gives you the opportunity to pay off a certain portion of your debt before the rest is forgiven. This type of bankruptcy means starting a repayment plan and putting most of your disposable income towards this plan for three to five years. Chapter 7 bankruptcy may require you to turn over some of your assets to repay as much of the debt as possible, and the remainder of your debt will be quickly eliminated.

Two factors you should consider when deciding between these two types of bankruptcy include:

• Your ability to keep making payments - If you choose Chapter 13, it is important to make sure that you will be willing and able to continue making a monthly payment that consumes most of the money you would have otherwise spent on things like going out with friends, enjoying your hobbies, and entertainment. If you cannot commit to this, it may be better to file under Chapter 7.
• Your assets - If you are concerned about the loss of your assets to liquidation, Chapter 7 may not be the right choice for you. Your attorney can explain which of your assets are exempt from liquidation—these assets usually include a personal vehicle of reasonable value and your personal effects like clothing and some furniture. If you have non-exempt assets you are unwilling to part with, Chapter 13 may be the better option.

Choosing a Type of Business Bankruptcy

Businesses will also need to choose between liquidation bankruptcy and restructuring bankruptcy. In addition to Chapter 7, Chapters 5 and 11 are also options. These forms of business bankruptcy will allow a business to stay open while repaying some debt.

Chapter 11 bankruptcy can be highly complex and costly, meaning it is most often chosen by larger corporations. It involves arranging creditors into groups, reorganizing and restructuring the business, and working to pay back most or all of the debt. Chapter 5 bankruptcy may be more accessible to small business owners. It is often seen as a much less complex version of Chapter 11 bankruptcy.

The main benefit of both Chapter 5 and Chapter 11 bankruptcy is that it can save a struggling business that has a strong business plan but too much debt to overcome independently. This can give a company a chance to keep working towards profitability instead of closing its doors permanently.

Contact a Prarie View, TX Bankruptcy Lawyer

The Fealy Law Firm, PC will assess your situation to help you make the best choice about which type of bankruptcy to file. Experienced Waller County attorney Vicky Fealy will do all she can to bring you debt relief through bankruptcy. Contact us at 713-526-5220 for a complimentary consultation.