Sugar Land, TX Bankruptcy Lawyer

Bankruptcy for Individuals and Corporations Attorney in Fort Bend County

Making the decision to file for bankruptcy can be difficult, but it can also bring you a lot of relief. If you are constantly being harassed by creditors and collections agencies over debts you do not have the money to pay, or if you have realized that your credit card balance is never going to go down due to high interest rates, bankruptcy may be the best way to find relief. Most types of debts a business or individual owes can be discharged in the bankruptcy process. You have options when it comes to filing for bankruptcy.

The Fealy Law Firm, PC is experienced in guiding people and companies alike through the bankruptcy process. Attorney Vicky Fealy will work with you to identify the right type of bankruptcy for you. Factors like what assets you own, your ability to repay, and whether your business will close or stay open should all be considered carefully. Our law firm will assess your situation to determine how best to approach bankruptcy.

If I File for Bankruptcy, Will My Assets Be Liquidated?

In Chapter 7 bankruptcy, some of your assets may be liquidated. In Chapter 13 bankruptcy, they will not, but you will need to keep making a single monthly payment for a few years. Even if you choose Chapter 7, this does not mean that everything you own will be taken. Assets that are exempt from liquidation during bankruptcy proceedings include:

• Household items - Your home will not be emptied out. Most household items, like clothing, furniture, and dishes are exempt as long as they are worth less than a certain amount. If you own a very expensive grandfather clock, it may not be exempt, but your bed almost certainly is.
• A personal vehicle - You likely need your car to get to work, the grocery store, or doctor's appointments. Unless your car is quite valuable, it is likely exempt from liquidation, and you will be able to keep one vehicle for every member of your family who drives. If you own a Ferrari, it may be sold to pay your debt. However, a modest Chevrolet sedan is unlikely to be sold off.
• Work-related items - If you need your laptop to work from home, or if you need your power tools to keep earning money as a handyman, those assets will not be liquidated.
• Health equipment - Equipment you need for medical reasons, such as a stair lift used by a mobility-limited person or a stationary bicycle you need to follow a prescribed physical therapy program, should not be liquidated.

Are There Any Debts I Cannot Discharge During Bankruptcy?

Student loan debt usually cannot be discharged during bankruptcy. However, if there is a compelling reason you cannot pay back your student loans - for example, if you have become permanently disabled - an exception may apply. Most other debts can be discharged, including personal loans, credit cards, medical bills, and some IRS debts.

What Are the Four Types of Bankruptcy?

The four major types of bankruptcy are:

• Chapter 7 - Liquidation bankruptcy can be used by an individual or a business that is closing.
• Chapter 13 - Reorganization bankruptcy means that you will pay off as much of your debt as possible over the course of a few years, and any remaining debt will be forgiven.
• Chapter 11 bankruptcy - This is a complex type of bankruptcy normally only used by large corporations and individuals with very high debts and complex assets.
• Chapter 5 bankruptcy - This is similar to Chapter 11 bankruptcy, but it is more likely to be accessible to small businesses. Both Chapter 5 and Chapter 11 will allow a business to keep operating.

Contact a Sugar Land, TX Bankruptcy Attorney

The Fealy Law Firm, PC will work with you to choose the right bankruptcy solution based on your needs and goals. Dedicated Fort Bend County bankruptcy lawyer Vicky Fealy can help you or your business get out of debt quickly. Contact us at 713-526-5220 for a complimentary consultation.