\ Filing for personal bankruptcy under the Chapter 13 clause | Law Office of Gordon Mosley

There Is No Charge For The First Consultation: 903-266-1843

Law Office of Gordon Mosley
A Bankruptcy & Consumer law Firm
20 Years Experience Helping People Gain A Fresh Start

Filing for personal bankruptcy under the Chapter 13 clause

As we all know, debts can accumulate over a period of time. This can make it difficult for a person to make ends meet when paying both monthly bills and debt payments. Many people try to save every cent so that they can be out of the debt as soon as possible, but sometimes paying just the interest on the debts can prove to be difficult. Another solution to reducing debt may be to sell their belongings to pay the debts, but again they may brush aside this solution because they don't want to lose their house or possessions.

However, living with overwhelming debt is difficult because creditors can be knocking at the door asking for payment. A stressed-out debtor will try to find other options but once these options have been ruled out, the last resort may be to file for bankruptcy.

Once bankruptcy is identified as the best available option to address these difficult financial times, they have to decide which chapter would be used for the filing. Most personal debtors prefer to make a filing under Chapter 7 or Chapter 13 bankruptcy rules.

To file under Chapter 13, the income of the person should be above the gross median for their location, but if it is below the median than the person will qualify for Chapter 7. To determine the person's income, the bankruptcy court will consider the person's wages and income for the past six months. If the person qualifies for Chapter 13, the person will be given a repayment plan.

Under Chapter 13, debtors have to reorganize and repay some percentage of debt during a three or five-year repayment plan. This plan is based on a payment formula, which if followed allows the remaining debt to be discharged when the repayment period ends.

There are various benefits and setbacks to filing a Chapter 13 bankruptcy. For more information, please visit our Chapter 13 bankruptcy page, which can provide information to help you understand all the options for repaying the debts and protecting your hard-earned assets.

No Comments

Leave a comment
Comment Information

Start Fresh - We Can Help!

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.


Privacy Policy

Contact Information

Law Office of Gordon Mosley

Tyler Office
4411 Old Bullard Rd.
Tyler, TX 75703

Phone: 903-266-1843
Tyler Law Office Map

Gun Barrel City Office
431 N Gun Barrel Ln
Suite 112
Gun Barrel City, TX 75156

Phone: 903-266-1843
Map & Directions

  • Local: 903-266-1843

  • Fax: 903-581-4038