When in deep financial trouble, a Texas resident’s primary concern is the possibility of losing their valuable assets such as a home, vehicle, real estate or other such significant assets should they file for bankruptcy. Additionally, the social stigma associated with bankruptcy can be quite distressing. However, if that person still has a steady source of income, he or she can avoid foreclosure, repossession or loss of other assets by filing for Chapter 13 bankruptcy.
According to U.S. bankruptcy laws, a debtor whose income is greater than the gross median income of the geographical area where he or she resides, must file for Chapter 13 bankruptcy. In such cases, a bankruptcy court assesses the debtor’s average income over the last six months and then finalizes a repayment plan for the debtor to follow. If a debtor successfully keeps his or her end of the plan, he or she is discharged of the remaining debt at the end of the repayment period.
A Chapter 7 bankruptcy filing involves liquidating assets in order to repay debts and many people are often afraid of losing assets.
Determining the best bankruptcy route, considering every debtor’s unique scenario, is often tricky. As a result, people often turn to experienced bankruptcy attorneys in order to seek debt relief. For about 20 years, the Law Office of Gordon Mosley has helped such people in Tyler, Texas, to stop foreclosure or repossession and seek debt relief through Chapter 13 bankruptcy filings. Therefore, people may consider seeking our advice in order to help them navigate through the Chapter 13 bankruptcy proceedings.