Bankruptcy Attorneys in Longview
Connecting Our Clients With Debt Relief Services & Solutions
Surveying the needs of our community, we have expanded our practice footprint to include commercial bankruptcy matters. Unforeseen complications can arise in simple and complex financing arrangements, and some of these result in bankruptcy for the commercial debtor. The experienced business attorneys at Coghlan Crowson, LLP can assist you in protecting those assets through the bankruptcy proceedings, ensuring that fair valuations are met and the highest standards are kept in the process.
We can provide assistance for commercial matters and disputes that may involve the following:
- Chapter 7 liquidation
- Chapter 11 reorganization
- Collection matters
- Deficiency suits
- Debt settlement and repayment structures
We represent commercial creditors in both Chapter 7 and Chapter 11 bankruptcy matters, and offer solutions in protecting assets and realizing the most value from the proceedings.
After more than four decades of experience in the local business community, Coghlan Crowson, LLP is positioned to design and articulate legal strategies that help our clients achieve milestones. We advocate for our clients in the manner best suited to the individual situation.
Chapter 7 Bankruptcy: Relief Through Liquidation
Chapter 7 bankruptcy is known as liquidation bankruptcy because certain kinds of property you own can be seized and sold off and given to your creditors.
The trade-off is that you can obtain a discharge (forgiveness) for most or all of your unsecured debts, such as:
- Credit card balances
- Medical bills
- Personal loans
- Utility bills
Whether or not the total value of liquidation meets the outstanding amount you owe is sometimes irrelevant. In many cases, debtors are freed from their financial obligations despite liquidation resulting in an amount less than they owe.
A common fear about Chapter 7 is losing important items that help people get through their day, such as clothing, furniture, tools, kitchenware, and other common household necessities. Even qualified savings and retirement accounts can be considered off-limits. The reality for most Chapter 7 bankruptcies is that these items and many others that people don’t expect can be considered exempt from liquidation.
In a similar vein, if payments on a car loan or home are current, bankruptcy may not necessarily put your ownership in jeopardy unless you own a considerable amount of equity in the property. Your bankruptcy attorney in Longview can provide more specific counsel on what your options and likelihood may be for keeping a home or car.
A final consideration is that those filing for Chapter 7 bankruptcy must satisfy a means test. This assessment takes your wages, living expenses, and other factors into account to determine whether or not you can qualify for Chapter 7 – and although many do, not all will.
Chapter 13: Reorganize Your Debt & Protect Your Home
Debt can quickly accumulate due to a job loss, medical bills, and other unforeseen costs – not to mention those that can add up when you owe an overdue tax bill or child support payments.
No one makes too much or too little money to qualify for debt relief through bankruptcy. If you were prioritizing other costs in your life and have fallen behind on your mortgage payments, Chapter 13 bankruptcy can help you make up for lost time. Importantly, however, the debt limits for Chapter 13 are $1,081,400 for secured debts and $3640,475 for unsecured debts. If you owe in excess of these amounts, you may want to consider filing for Chapter 11.
Unlike a Chapter 7 bankruptcy, Chapter 13 does not require liquidation. Instead, your debt is restructured into manageable monthly payments that can help you get back on track within a three-to-five-year time span.
This has several benefits, such as:
- Allowing you to keep your assets and possessions
- Stopping foreclosure proceedings or other creditor actions taken against you
- Reducing sizable chunks of unsecured debts (credit card bills, medical bills, etc.), which provides flexibility to focus on non-dischargeable debts such as back taxes, student loans, and child support payments
In some cases, second mortgages no longer backed by your home’s market value can also be entirely discharged through Chapter 13 bankruptcy.
Individual Chapter 11 Bankruptcy
Chapter 11 bankruptcy is typically used by corporations to restructure unpayable debts into more manageable monthly payments. Although Chapter 13 will cover most individuals’ needs, those that owe in excess of $1,081,400 in secured debt and $360,475 in unsecured debt will not qualify. Such individuals can file for Chapter 11 bankruptcy, which isn’t an entirely dissimilar process from Chapter 13.
Your bankruptcy attorney in Northeast Texas can explain in greater detail how this type of bankruptcy may work for you, but in essence, it involves restructuring your consumer debts into more manageable monthly payments. The reason why it is typically associated with corporations is because there is no debt limit and these organizations can owe millions upon millions in debt that needs to be restructured.
If you want to explore debt relief options in bankruptcy, please do not hesitate to reach out to our bankruptcy attorneys in Northeast Texas for help. At Coghlan Crowson, LLP, it is our goal to provide our clients with the highest quality of legal assistance and guide them through the process toward a brighter future.
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