Byman & Associates PLLCByman & Associates PLLC2026-06-03T23:06:59Zhttps://www.bymanlaw.com/feed/atom/WordPress/wp-content/uploads/sites/1404422/2024/06/cropped-site-icon-byman-smooth-32x32.pngOn Behalf of Byman & Associates PLLC<![CDATA[How long does the automatic stay prevent collection attempts?]]>https://www.bymanlaw.com/?p=536442026-06-03T23:06:59Z2026-06-03T23:06:59ZProtection lasts until the resolution of the filing
In a consumer bankruptcy filing, the automatic stay provided by the courts typically takes effect immediately. Creditors may learn about the bankruptcy the same day or within a few days of the filer submitting paperwork to the courts. The automatic stay typically remains in effect until the courts either grant the filer their discharge at the end of the bankruptcy process or dismiss the bankruptcy case.
Occasionally, creditors can ask the court to lift the automatic stay. In cases involving allegations of financial fraud or other unusual circumstances, creditors can request hearings in court known as adversary proceedings.
A judge can lift the automatic stay if they agree with the creditor’s claims, allowing them to resume collection efforts. In most other scenarios, creditors are subject to the restrictions of the automatic stay until the final resolution of the bankruptcy case. If the debt is eligible for discharge, they cannot resume collection activities even after the completion of the legal process.
Understanding what happens during personal bankruptcy can help people time their filing and optimize the benefits they derive. Those expecting pushback from creditors or facing violations of the automatic stay protections granted by the courts may need assistance asserting their rights under the law.]]>On Behalf of Byman & Associates PLLC<![CDATA[The financial stress behind most Chapter 13 filings]]>https://www.bymanlaw.com/?p=536412026-05-22T12:22:15Z2026-05-22T12:22:15ZFinancial problems rarely appear overnight. For many families, financial pressure starts to build slowly after a major life event changes their ability to keep up with everyday expenses.
Even people who once felt financially stable can find themselves struggling after job loss, divorce or medical bills. When debt becomes unmanageable, Chapter 13 bankruptcy can offer a structured way to regain control and protect important assets.
The financial hardships that often lead to Chapter 13
Chapter 13 is a type of consumer bankruptcy that allows individuals to use their regular disposable income to repay debts over a period of three to five years. Through a structured repayment plan, you make monthly payments toward your debts, and once the plan is completed, certain remaining debts may be discharged. There are many reasons why someone may decide that Chapter 13 is the best option for protecting their financial future and supporting their family.Losing a job or experiencing a reduction in income is one of the most common reasons people fall behind financially. When income suddenly stops, financial stress can build quickly. Studies have found that many unemployed workers are forced to rely on savings within just a few months of losing a job, and missed payments often become more common the longer unemployment continues. As bills continue to pile up, many individuals find themselves struggling to keep up with everyday expenses while falling deeper into debt.Divorce can also create a serious financial strain. A household that once relied on two incomes may suddenly need to support two separate homes, along with new legal expenses or child support obligations. Even amicable divorces can leave both parties struggling to keep up with monthly payments and everyday costs.Finally, medical debt continues to affect many hardworking individuals and families. A sudden illness, surgery or ongoing health condition can lead to large medical bills, missed work and increased financial pressure at the same time. Even households with steady employment may struggle to stay current on their expenses when faced with high healthcare costs and ongoing debt.Every financial situation is different, and understanding available options can make an important difference during a difficult time. Speaking with a legal professional can help you better understand what steps can help protect your future and provide a path toward financial stability.
]]>On Behalf of Byman & Associates PLLC<![CDATA[What will your Chapter 13 monthly payment look like?]]>https://www.bymanlaw.com/?p=536382026-05-20T13:39:53Z2026-05-20T13:39:53ZHow does the court determine what you can reasonably afford?
The court usually bases your monthly payment on what the law defines as your disposable income. To figure this out, the court typically looks at where your income falls compared to the median family income in Texas:
If your income is above the Texas median, the court uses a formula based on standardized IRS expense guidelines to determine your allowed deductions.
If your income is below the Texas median, the court looks at your actual household budget, what you bring in versus what you reasonably need to spend on rent, groceries and utilities each month. Your payment plan will usually last for at least 3 years.
The court requires your plan to pay unsecured creditors at least as much as they would likely receive if a Chapter 7 bankruptcy sold off your nonexempt assets instead.
Why are different types of debts treated unequally?
Once the court determines your payment amount, it typically divides that money based on the type of debt. You might want to prioritize catching up on past-due balances for secured assets you want to keep, such as a home or car, as well as priority debts such as taxes, before paying general unsecured creditors. Unsecured debts, including credit cards or medical bills usually get a smaller share, but the amount can depend on the value of the property you own.
Resetting towards financial recovery
Chapter 13 may work as a structured way to reset your finances rather than a form of punishment. The plan is usually based on your income and living expenses, so your monthly payment can be more predictable than managing multiple credit card bills at once. It may give you a clearer path to getting your finances back on track at a pace that works for you.]]>On Behalf of Byman & Associates PLLC<![CDATA[Will a prior bankruptcy filing prevent me from filing Chapter 7?]]>https://www.bymanlaw.com/?p=536362026-05-08T01:50:34Z2026-05-08T01:50:34ZA sufficient time gap is required
The law mandates specific time periods between one filing and another. If you previously filed for Chapter 7, you cannot do so again until at least eight years have passed. After that, you can submit your application. You still must meet the other requirements, such as the means test, which you will need to pass again.
If, however, your previous filing was a Chapter 13 bankruptcy, you are able to submit your Chapter 7 application sooner. It will depend on how that previous bankruptcy went. If you paid back 100% of the claims against you, then there is no minimum period to wait.
The same is true if you paid back at least 70% of those claims and ”the Chapter 13 Plan was proposed in good faith and was the debtor’s best effort,” according to the Bankruptcy Code. If you did not manage to repay at least 70%, then there is a mandatory waiting period of 6 years before you can file for Chapter 7.
As you can see, bankruptcy filings are not straightforward, but then neither is continuing on with debts you cannot repay. Getting experienced legal guidance to learn more about your options can help you understand how best to proceed.]]>On Behalf of Byman & Associates PLLC<![CDATA[Chapter 7 vs. Chapter 13 for Texas homeowners]]>https://www.bymanlaw.com/?p=536342026-05-07T12:59:33Z2026-05-07T12:59:33ZWhen Texas homeowners are grappling with financial stress, choosing between Chapter 7 and Chapter 13 bankruptcy may be a necessary first step toward regaining stability and security.
While both options can provide relief, they work in very different ways when it comes to mortgage debt, missed payments and long-term stability.
How Chapter 7 and Chapter 13 each affect your home
Chapter 7 is often described as a “fresh start” bankruptcy. It can eliminate many unsecured debts, such as credit cards and medical bills, relatively quickly. For homeowners who are current on their mortgage and could more easily stay current if their other financial burdens were lightened, Chapter 7 can be a useful tool. By wiping out other debts, it may free up income to continue making mortgage payments. Texas also has strong homestead protections, which can help shield home equity in many cases.However, Chapter 7 does not provide a mechanism to catch up on missed mortgage payments. If you are behind on your mortgage, your lender can still move forward with foreclosure once the automatic stay is lifted or the case is completed. Chapter 7 may delay the process temporarily, but it does not create a structured way to bring a loan current. For homeowners already in default, this limitation can be significant.Chapter 13 works differently. Instead of eliminating debts right away, it creates a court-approved repayment plan that typically lasts three to five years. One of the key advantages for homeowners is the ability to catch up on missed mortgage payments over time. If you are behind on your loan, Chapter 13 allows you to spread those arrears out into manageable payments while continuing to make your regular monthly mortgage payments.Chapter 13 can also help address other housing-related issues. In some cases, it may allow you to deal with second mortgages or liens in a way that reduces overall debt, depending on your home’s value and other factors. Additionally, filing Chapter 13 triggers an automatic stay that can stop foreclosure proceedings and give you time to reorganize.
Making a decision
The choice between Chapter 7 and Chapter 13 often comes down to your goals and your current financial position. If you are current on your mortgage and need to eliminate other debts, Chapter 7 may be sufficient. If you are behind and want to keep your home, Chapter 13 is often the more effective option.Because every situation is different, it is important to evaluate income, equity and long-term affordability with the guidance of a skilled legal team before deciding. The stakes are simply too high for a DIY approach. ]]>On Behalf of Byman & Associates PLLC<![CDATA[Study: People spend more when using a credit card]]>https://www.bymanlaw.com/?p=536322026-04-23T14:53:33Z2026-04-23T14:53:33ZStudies have found that the type of currency a person uses when making a purchase can have a very real impact on how much they spend. Notably, people are likely to spend more money when they use a credit card, as opposed to when they use cash. In one study, 58% of people admitted that credit cards influence them to spend more.This is notable because credit cards are more common than ever. A full 76% of people in the survey said that they preferred to shop at businesses where they could use a credit card, and 70% of them said that they used credit cards as their most frequent way to make a payment. They may use cash when they have to, but they prefer to use cards and will do so whenever possible.
Why do people spend more?
For one thing, impulse purchases are more common with credit cards. Even if someone does not have $100 in their bank account, they can still spend $100 on a credit card. Mentally, they just tell themselves that they will figure out how to pay the card off at the end of the month. It feels like a problem they can solve later, so they give in to the impulse.Additionally, spending money on a credit card does not always feel like a “real” transaction. If someone has to hand $100 to a store owner to make a purchase, they are very conscious of the total amount of money that they are spending. But when they just swipe their credit card, even if the purchase is for slightly over $100, it does not feel like they have actually lost anything. Again, they can mentally push the need to pay off the credit card into the future, making them feel more comfortable spending money that they cannot necessarily afford.In some cases, overspending on credit cards, combined with excessively high interest rates, can lead to overwhelming debt. Those who are facing these issues need to know about bankruptcy and all their other legal options.]]>On Behalf of Byman & Associates PLLC<![CDATA[How long does Chapter 13 bankruptcy protect against eviction?]]>https://www.bymanlaw.com/?p=536282026-04-21T18:13:42Z2026-04-21T18:13:42ZThe automatic stay immediately pauses eviction proceedings
When you file Chapter 13 bankruptcy, the court issues an automatic stay. This legal order stops creditors and landlords from taking collection actions against you.
The stay goes into effect the moment you file your bankruptcy papers. For tenants facing eviction, this means your landlord must immediately stop the eviction process. This works whether you rent an apartment or are facing foreclosure on a home you own.
The automatic stay typically lasts throughout your entire Chapter 13 bankruptcy case, which runs for three to five years depending on your income and repayment plan. This protection gives you time to fix your finances without worrying about becoming homeless right away.
Your repayment plan determines long-term protection
During Chapter 13 bankruptcy, you follow a payment plan approved by the court that lasts 3-5 years. You make monthly payments to your bankruptcy trustee, who gives the money to your creditors based on legal rules.
As long as you stay current on your plan payments and any ongoing rent, the automatic stay remains in place. This gives you years of protection while you catch up on past-due amounts and rebuild your financial stability.
Landlords can still evict under specific circumstances
The automatic stay does not provide absolute protection in every case. Landlords can still evict you under these circumstances:
The landlord already obtained a judgment for possession or eviction order before you filed bankruptcy
Your lease expired before you filed and the landlord refuses to renew it
You endanger the property or engage in illegal drug activity on the premises
The landlord files a motion with the bankruptcy court and receives permission to proceed
You fail to pay your current rent during the bankruptcy case
These exceptions exist to protect landlords' property rights while still giving honest tenants a chance to recover financially.
Securing your housing for the long term
Chapter 13 bankruptcy offers good protection from eviction, but you must keep this protection through regular payments and following bankruptcy rules.
The temporary breathing room from bankruptcy gives you valuable time to fix your finances and make plans for stable housing. With good planning and commitment to your payment plan, bankruptcy can help you create lasting financial and housing stability.]]>On Behalf of Byman & Associates PLLC<![CDATA[Bankruptcy can affect your credit for years]]>https://www.bymanlaw.com/?p=536262026-04-03T12:47:59Z2026-04-03T12:47:59ZThe decision to file for bankruptcy is one that’s usually made after careful consideration. It can bring immediate relief from the debts that you’re drowning in. As part of the bankruptcy process, all or part of the balances owed are discharged. This allows for a fresh financial start.
One question that some people have when they file for bankruptcy is how it will affect their credit history and creditworthiness. Bankruptcy is recorded on your credit report and remains there for a specific period time, which depends on what type of bankruptcy is filed.
What are the reporting requirements for bankruptcy on a credit report?
A Chapter 7 bankruptcy remains on the credit report for up to 10 years. This type of bankruptcy is known as a liquidation bankruptcy because you don’t make regular payments to the bankruptcy trustee. Instead, the trustee has the option of liquidating non-exempt assets to pay as much of the debt as possible. Any debts remaining are discharged at the end of the bankruptcy.A Chapter 13 bankruptcy is typically reported for up to seven years. This is known as the wage earners' bankruptcy because filers make regular payments to the bankruptcy trustee to pay off a specific part of the debt. Once the final scheduled payment is made, any balances remaining are discharged at the end of the case.
How does this affect creditworthiness?
Creditworthiness is often limited by a bankruptcy on the report. Lenders will often view applicants with bankruptcy as high risk and may opt to refuse to extend credit. As time moves forward, it’s often possible to rebuild creditworthiness. This often starts with opening secured lines of credit after the bankruptcy is discharged.There are several things to consider if you’re thinking about filing bankruptcy. Discussing your case with someone familiar with these matters is beneficial.]]>On Behalf of Byman & Associates PLLC<![CDATA[Proving eligibility for an individual Chapter 7 bankruptcy]]>https://www.bymanlaw.com/?p=536232026-03-17T07:41:10Z2026-03-17T07:41:10ZChapter 7 bankruptcy is generally the fastest route to a discharge for individuals and married couples. While Chapter 13 bankruptcy requires between three and five years of structured payments before the courts may grant the discharge of any remaining eligible debts, there is no repayment plan in a Chapter 7 bankruptcy.
Qualifying filers are often able to secure a discharge within months of their initial submission of paperwork to the courts. To prevent abuses of the Chapter 7 bankruptcy process, the law imposes strict limitations on eligibility based on income.How can individuals and couples filing jointly prove that their circumstances qualify them for a Chapter 7 bankruptcy?
They must pass a means test
Those aspiring to file Chapter 7 bankruptcy must calculate their adjusted income to determine if they are eligible. The means testing process involves calculating annual income based on the last six months.Filers can adjust their gross income by deducting certain permissible expenses from their total household income. Necessary living expenses, such as housing, utilities and transportation, are among the costs that reduce the filer’s income. They then compare the adjusted figure to the current Department of Justice median income figure for their state, based on the size of their household. Individuals who successfully complete means testing can then begin exploring exemptions to protect their resources from liquidation during the bankruptcy process.Partnering with an attorney can be helpful during means testing and throughout a Chapter 7 bankruptcy case. Individuals who understand the law and the financial limitations of Chapter 7 bankruptcy are in the best possible position to reduce their financial obligations and preserve their resources.]]>On Behalf of Byman & Associates PLLC<![CDATA[Can Chapter 13 bankruptcy stop foreclosure on your shelter?]]>https://www.bymanlaw.com/?p=536192026-03-13T12:19:18Z2026-03-13T12:18:19ZPutting an immediate pause on foreclosure
Fortunately, Chapter 13 may be able to stop a Texas foreclosure quickly. When you file your petition, federal law triggers an automatic stay. In most cases, this legal shield can stop collection actions immediately. However, if you previously dismissed a bankruptcy case within the past year, the stay may only last 30 days or may not apply at all without a specific court motion.
Timing remains critical because Texas foreclosure sales typically occur on the first Tuesday of the month. You need to have the court receive your filing before the actual sale begins. If you file even minutes after the sale concludes, you lose your primary leverage.
How you catch up after the stay
Once the stay is in place, Chapter 13 provides a structured plan to catch up on missed payments. You must continue making your regular monthly mortgage payments going forward. Simultaneously, you pay the past-due amount (the arrears) through a court-approved repayment plan. This strategy offers essential breathing room while you stabilize your income. The process typically follows these steps:
Filing: You submit your petition to trigger the automatic stay.
Proposing: You can design a plan that spreads out your missed payments over three to five years.
Paying: You send one monthly payment to a trustee while staying current on your new mortgage bills.
Distributing: Your lender receives the catch-up funds once the court confirms your plan.
Consequently, taking these steps can help you move from having a financial crisis to a walking down a predictable recovery path.
Understanding Texas homestead rules
Texas has some of the strongest homestead protections so you can protect your property and your mission from general creditors. However, the rules do not cancel a valid mortgage lien. And while Chapter 13 stops the sale so you can catch-up on the payments, it does not erase your debt and your responsibility to pay your mortgage.
Navigating court expectations for your shelter
The bankruptcy court focuses primarily on your "disposable income" and the "feasibility" of your plan. While your community service explains why you value the home, the court will not grant special legal breaks for running a shelter. In fact, if the shelter creates high utility bills or extra costs, the trustee may question if you can actually afford your plan. Your case ultimately depends on proving you have enough income to cover your household, your shelter expenses, and your creditors.
The next step for your mission
While your cause is a charitable one, it is important that you have legal support to help you present your finances in a way that satisfies what the court needs to consider a stay.
Chapter 13 offers a powerful way to save your Texas home if you act before the foreclosure sale. It gives you the time and space so you can regain your footing and protect your household.]]>