The Woodlands, TX Bankruptcy Lawyer

Montgomery County Debt Relief Attorney

Both businesses and individuals can find themselves in a position where they have so much debt that they will never realistically be able to pay it off. This type of debt can come from numerous sources, including unexpected business startup costs, credit card debts, and predatory payday loans. In many cases, going into debt may have been a company's only option to avoid abruptly closing down and abandoning its mission. Families may unavoidably go into debt to ensure that a family member's illness can be treated or to keep food on the table while an adult is out of work.

The Fealy Law Firm, PC is experienced in helping both businesses and families find debt relief through bankruptcy. In many cases, corporations and people who file for bankruptcy are able to avoid debt in the future. Bankruptcy can provide you with a clean slate and a new financial start. It can enable you to clear away debt that you could not avoid and start anew. Attorney Vicky Fealy will do all she can to help you or your business find lasting debt relief by filing for bankruptcy.

Business Debt and Bankruptcy Options

Businesses, especially very new or very old businesses, can go into debt that cannot be overcome in many situations. Common reasons companies find themselves in this position include:

• Unplanned expenses - Companies can find themselves faced with unexpected costs. These may be startup expenses that were not planned for, unexpected lawsuits, or the need for new equipment sooner than expected.
• Changes in the economy or consumer demand - Even if a business was very successful at first, changing economic circumstances can drive customers away. Changes in consumer demand for certain products over time can also impact an older business.

Options companies might have when filing bankruptcy might include:

• Chapter 7 - In these cases, business assets will be liquidated, and a business will likely need to close, but business debt will be cleared.
• Chapter 5 - Small businesses that plan to keep operating but have faced some challenges may be able to file under this chapter.
• Chapter 11 - This chapter is most commonly used by large corporations.

Individual and Family Bankruptcy Causes and Choices

Individuals and families may find themselves facing debt they cannot pay back for different reasons, possibly including:

• Credit card debt - High interest rates can render a family unable to pay back debt after missing even one payment.
• Medical bills - Even with health insurance, the cost of treating a major illness or injury can be astronomical.
• Divorce - One or both spouses can quickly go into debt during a divorce. The cost of starting and maintaining a separate household as well as covering the legal costs associated with divorce can quickly send a person into debt.
• Personal loans - Many families use these types of loans to cover large expenses they cannot pay out of pocket, such as home renovations, and they may find that they are unable to pay back what is owed.
• Payday loans - Payday lenders often take advantage of low-income families who need money to survive until their next payday, but these debts can quickly spiral out of control.

Families and individuals have two main options for filing for bankruptcy:

• Chapter 7 - This may involve liquidating some assets in order to pay off as much of the debt as possible. However, the remainder of the debt will be cleared away once the bankruptcy process has been completed, and exemptions may be used to protect most types of assets from liquidation.
• Chapter 13 - Repayment plans created under Chapter 13 last from three to five years for most people. Most of a family's disposable income will be used to pay back as much debt as possible during this period, but only a single monthly payment will be required.

Contact Our The Woodlands, TX Bankruptcy Attorney

The Fealy Law Firm, PC is dedicated to helping companies and families find lasting debt relief through bankruptcy. Committed Montgomery County bankruptcy lawyer Vicky Fealy will work with your family or business to find the right solution for your unique situation. Contact us at 713-526-5220 for a complimentary consultation.