Filing for bankruptcy is sometimes unavoidable for Texas residents. When it comes to deciding whether to file for bankruptcy, people may be concerned about losing their family home to foreclosure and being left virtually penniless. At the law office of Gordon Mosley, we have had decades of experience counseling Texans into better understanding their options in such difficult times.
Many Texas residents have been able to save themselves from losing all of their significant assets by filing for bankruptcy under Chapter 13. The basic difference between Chapter 7 bankruptcy and Chapter 13 is that while the former calls for asset liquidation, the latter essentially requires one to reorganize assets in order to realize their debts and manage them better.
Many debtors might not qualify for complete asset liquidation due to their high income. In such cases, reorganization under Chapter 13 bankruptcy is a way out. Attorneys can help the debtor formulate a plan tailor-made for their financial situation. Following this financial plan may help a debtor from losing their assets permanently.
Being an income-based bankruptcy procedure, Texas authorities first look into the median income of a household for half of a year preceding such a bankruptcy application. The debtor would be eligible to file for bankruptcy under Chapter 13 only if the median income of the household is above the average per capita income assessed by the authorities.
Having two decades of experience in bankruptcy law, the law office of Gordon Mosley has the knowledge to guide their clients and formulate the best plans individually. Filing for bankruptcy does not have to be the end of the road for debtor. Rather, it can be the beginning of a new road toward a fresh financial start.