Bankruptcy | Texas Trial Lawyer

Business | Consumer Bankruptcy

Mark A. Nacol has had substantial experience in representing individuals and businesses in Chapter 7 and Chapter 13 bankruptcy workouts, turnarounds and restructurings and Chapter 11 reorganizations. There are many reasons that individuals and companies find themselves facing financial crisis: economic downturn, unforeseen accidents, job loss, illness, divorce, just to name a few. The Nacol Law Firm PC understands that each situation is unique and works directly alongside the client to ensure that proper paperwork and filing is in order.

Business Bankruptcy

Chapter 7

A Chapter 7 business bankruptcy is essentially a liquidation of a business, meaning that assets are sold to pay off debts (such as outstanding bills, back rent, small business loans, etc.). The company closes, and the owners, investors and partners may be personally responsible for repaying any remaining debt. In these instances, the individuals who personally guaranteed business loans may also be eligible for a Chapter 7 consumer bankruptcy.

Our law firm can help you recover from tragic events or economic downturns through relief offered by filing a Chapter 7 business bankruptcy. If your business is going under and you cannot see a light at the end of the tunnel, contact our firm today. We will take a hard look at your situation and discuss your legal options for getting out from under crushing debt.

Chapter 11

The key to a successful Chapter 11 bankruptcy is pre-bankruptcy planning. There are great powers afforded to Chapter 11 Debtors, such as the ability to object to your creditors' claims, avoid liens, reject leases and contracts with no penalty, extend the time for repayment to existing creditors or even reduce the amount owed or paid to them. The ultimate purpose of a Chapter 11 case is to get a Plan of Reorganization (repayment) confirmed by the court. This is by no means a simple task and the requirements for doing this are rather complex. The Plan is basically a contract with one's creditors as to how they will be repaid, and from what source. The creditors have to vote for the Plan in certain numbers, or if they do not vote in sufficient numbers for the Plan, they may be forced to accept the Plan if other requirements are met. There are many ways to formulate a Plan, subject to the requirements and limitations of the Bankruptcy Code, and the more skilled attorneys will explore all avenues to improve your business and financial position.

Often there is litigation associated with any Chapter 11 case, either with the Debtor attacking the creditors, or vice versa.

While each case is different, your business may be able to avoid liquidation if a carefully crafted debt reorganization plan is presented and accepted by the creditors' committee. The Nacol Law Firm PC understands what needs to be done in order to salvage what you have worked hard to build. Specifically, we are fully capable of handling:

Boards of directors and management of troubled companies before and during Chapter 11 proceedings, including counseling financially distressed companies of viable alternatives to commencing a bankruptcy case, problems and solutions which may or will arise in bankruptcy cases and structuring the potential resolution of same prior to their emergence
Cash collateral negotiations and debtor- in- possession financing arrangements
The purchase and sale of businesses and assets from Chapter 11 debtors
Complex Chapter 11 plan negotiations and the litigation of contested plan confirmation issues
Preference litigation and fraudulent conveyance litigation
Enforcing the rights of secured creditors
Single asset real estate partnership cases
Corporate restructuring advice

Consumer Bankruptcy

Chapter 7

Under the new bankruptcy laws, bankruptcy is still an available option for consumers facing financial difficulties. It is now more important than ever to have an experienced bankruptcy lawyer working for you. The telephone should no longer be an instrument of torture. And that mountain of bills that you keep avoiding can be a memory. This is a very real possibility - with help, guidance and encouragement from The Nacol Law Firm PC.

To assist you, below are some common financial warning signs:

Are any of your credit accounts more than 30 days late?
Do you pay only the minimum payment due on your credit cards a majority of the time?
Do you float or bounce checks in order to put food on your table or pay monthly expenses such as electric or gas?
Have you borrowed money from a loan to payday or vehicle title loan source?
Do bill collectors call you at home or work?
Do you have multiple mortgages on your house?
Have you reached the credit limit on one or more of your credit cards?
Have you borrowed money to pay off your credit cards (including balance transfers) and accrued significant balances again?
Do you lose sleep at night because you worry how you are going to pay your bills?
Do you live from paycheck to paycheck with no source of funds for unexpected obligations?
Have you borrowed money from friends and/or relatives to meet obligations?
Do you pick and choose which accounts to pay because you can't afford to pay all of your obligations?
Has your credit line been stopped by one or more creditors?
Is your house in jeopardy of foreclosure?
Has your house been foreclosed or your car repossessed leaving you with a balance due on the property that you no longer own?
Do you stress over your finances?
Are you afraid or hesitant to answer your telephone because you don't want to be abused or belittled by a representative attempting to collect money from you?
Do you write checks hoping they don't clear your bank before your paycheck gets deposited?
Do you make excuses to yourself or those around you as to why you can't pay your bills?

If you answered yes to any of these questions, arrange for your FREE CONSULTATION today.

Chapter 13

Under a chapter 13 bankruptcy, a debtor proposes a 3-5 year repayment plan to the creditors offering to pay off all or part of the debts from the debtor's future income. You can use Chapter 13 to prevent a house foreclosure; make up missed car or mortgage payments; pay back taxes; stop interest from accruing on your tax debt; keep valuable non-exempt property; and more. If you can stick to the terms of your repayment agreement, all your remaining dischargeable debt will be released at the end of the plan (typically three to five years). The amount to be repaid is determined by several factors including the debtor's disposable income. In addition, the total amount paid to creditors under the Chapter 13 plan must also be at least as much as creditors would have received if the debtor filed a Chapter 7 bankruptcy. To file Chapter 13 bankruptcy you must have a "regular source of income" and have some disposable income to apply towards your Chapter 13 payment plan.

Chapter 13 bankruptcy is generally used by debtors who want to keep secured assets, such as a home or car, when they have more equity in the secured assets than they can protect with their Texas bankruptcy exemptions. Chapter 13 bankruptcy is a reorganization whereas Chapter 7 bankruptcy is a liquidation.

The Nacol Law Firm PC provides quality representation to clients in all areas of bankruptcy proceedings. Mark Nacol knows the stress and pressure that clients feel when they are being hounded by bill collectors. He also knows the reward of seeing good, honest people get the chance to start over and build a financially secure future.