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Law Office of Gordon Mosley
A Bankruptcy & Consumer law Firm
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What personal debt relief options are available to me?

Are you one of the many Texas residents struggling to meet their debt obligations? It is okay. It happens. If you are in a financial pickle, you may want to know what debt relief options are available to you. The truth is, there may be a few options, depending on the specifics of your situation.

Two of the most common forms of debt relief offered through legal means are Chapter 13 and Chapter 7 bankruptcies. This column will discuss the differences between the two, along with their benefits.

Chapter 13 bankruptcy

If you currently have steady income coming in but you cannot keep up with your debts, you may qualify for a Chapter 13 bankruptcy. In this type of bankruptcy, you will file a petition with the court requesting the combining of your debts into a simple and affordable repayment plan.

Benefits of filing this type of bankruptcy include:

  • Stops foreclosure
  • Ends creditor harassment
  • Ability to keep property
  • Given three to five years to pay off debts
  • Cosigner protection

Chapter 7 bankruptcy

If you lack steady income or have it but are still unable to repay debt with a repayment plan, you may qualify for a Chapter 7 bankruptcy. Liquidation bankruptcy is another name for Chapter 7 bankruptcy. If a bankruptcy court approves your Chapter 7 filing, certain debts may be discharged, such as medical expenses, credit card bills and personal loans - basically any unsecured debts. You will not be responsible for paying back any discharged debts.

The handling of secured debts is a bit different. You can sell property that is not exempt, and any money received will be swiftly passed on to creditors as payment. An attorney can provide further information on what property is eligible for exclusion from the liquidation process. The main benefits of this type of bankruptcy filing are that it offers a fast end to creditor harassment and quick debt relief.

Find out if bankruptcy is right for you

As everyone's fiscal state is different, these forms of debt relief are in place to cater to individual circumstances. Both have positives and negatives and both - if approved - will help petitioners in Texas or elsewhere get the fresh financial starts that they desire.

Filing for a Chapter 13 or Chapter 7 bankruptcy may seem like a pretty simple and straightforward task, but, the truth is, bankruptcy filings can be complex and confusing. If you are considering this form of debt relief, an experienced attorney can assist you in determining which type of bankruptcy best suits your current situation and he or she will be there to help you throughout the entire process.

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Law Office of Gordon Mosley

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4411 Old Bullard Rd.
Tyler, TX 75703

Phone: 903-266-1843
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Gun Barrel City, TX 75156

Phone: 903-266-1843
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