Byman & Associates PLLC Byman & Associates PLLC 2026-07-25T01:53:32Z https://www.bymanlaw.com/feed/atom/ WordPress /wp-content/uploads/sites/1404422/2024/06/cropped-site-icon-byman-smooth-32x32.png On Behalf of Byman & Associates PLLC <![CDATA[Fluctuating income pitfalls when pursuing Chapter 7 bankruptcy]]> https://www.bymanlaw.com/?p=53657 2026-07-25T01:53:32Z 2026-07-25T01:53:32Z How variable income affects Chapter 7 eligibility The means test evaluates the filer's gross income from the six months prior to the filing date. This includes overtime, bonuses and other payments even when the amounts earned are not consistent or permanent. This means a few high earning months may raise the average above the Texas median income. Some filers discover that seasonal or project-based work creates an inflated result. Accurate records help ensure that the calculation reflects actual earnings. Pay stubs, bank statements and gig payment summaries can help identify patterns that may affect the filing date.

Common issues with fluctuating income

Variable income can lead to several recurring issues during the means test. Here are some of the most common concerns and how they may impact a Chapter 7 filing:
  • Overtime spikes: Occasional overtime during busy periods can raise the six-month average.
  • Bonus payments: Annual or quarterly bonuses are included and may increase total income.
  • Gig earnings: Irregular payments from rideshare, delivery or freelance work can distort the average.
  • Seasonal cycles: Income from seasonal industries may not reflect current financial strain.
A well-chosen filing date can reduce the impact of temporary income increases, especially with strong documentation that supports deductions for necessary expenses. Legal counsel can help you determine the right filing date and guide you in taking advantage of potential Chapter 7 exemptions.]]> On Behalf of Byman & Associates PLLC <![CDATA[Chapter 7 bankruptcy addresses overwhelming debt]]> https://www.bymanlaw.com/?p=53655 2026-07-17T11:58:47Z 2026-07-17T11:58:47Z Chapter 7 bankruptcy is available to people who don’t earn much income, relatively speaking. A Chapter 13 bankruptcy is known as a wage earner’s bankruptcy. The means test is used to determine if you can file a Chapter 7 bankruptcy.

What happens during a Chapter 7 bankruptcy?

During a Chapter 7 bankruptcy, you will receive a much needed break from creditor contact. The court will issue an automatic stay once you file for bankruptcy. This prevents creditors from trying to collect money from you in any form, including written or verbal attempts. The automatic stay can also pause lawsuits and garnishments. There’s also another purpose to the automatic stay. Since creditors won’t likely receive full payment for your debt, the automatic stay ensures no creditor collects beyond what they’re due. All bankruptcy cases must be handled carefully. Working with a legal professional who has experience with a Chapter 7 bankruptcy may be beneficial since they can help you to ensure that you’re meeting your obligations and that your rights are being protected.]]> On Behalf of Byman & Associates PLLC <![CDATA[How does Chapter 7 affect individuals and businesses?]]> https://www.bymanlaw.com/?p=53653 2026-07-02T02:38:26Z 2026-07-02T02:38:26Z How does Chapter 7 affect individuals? For individuals, Chapter 7 focuses on discharging eligible unsecured debts. Once you file, the court issues an automatic stay that temporarily stops most collection efforts, including lawsuits, wage garnishments and creditor harassment. Chapter 7 may eliminate debts such as:
  • Credit card balances
  • Medical bills
  • Personal loans
  • Utility bills
  • Certain older unsecured debts
Many people also keep some or all their property through federal or state bankruptcy exemptions, depending on the laws that apply. However, Chapter 7 does not discharge obligations such as child support, most student loans, recent tax debts and certain other nondischargeable debts.

How does Chapter 7 affect businesses?

Businesses use Chapter 7 for a different purpose. Rather than reorganizing operations, a business typically files Chapter 7 to wind down permanently. During the process, a bankruptcy trustee gathers and sells the company's nonexempt assets, then distributes the proceeds to creditors according to bankruptcy law. After liquidation, the business usually ceases operations. Unlike individuals, businesses do not receive a Chapter 7 discharge that allows them to continue operating after eliminating debt.

What happens to business owners?

The effect on a business owner depends on the company's legal structure. For example:
  • Sole proprietors and their businesses are legally the same entity, so personal and business debts may both become part of the bankruptcy case.
  • Corporations and limited liability companies exist as separate legal entities. Filing Chapter 7 for the business does not automatically eliminate an owner's personal liability for debts they personally guaranteed.
Understanding how your business is organized plays an important role in evaluating your bankruptcy options.

Which option is right for you?

Chapter 7 is not the best solution for every financial situation. Individuals with regular income who want to protect certain assets may benefit more from Chapter 13. Businesses hoping to continue operating may need to consider Chapter 11 instead. Choosing the appropriate chapter depends on your financial goals, income, assets and long-term plans.

Why legal guidance matters

Bankruptcy laws contain detailed eligibility requirements, exemptions and procedural rules. Filing under the wrong chapter can create unnecessary financial consequences or limit your available options. An experienced bankruptcy attorney can evaluate your circumstances, explain the differences between Chapter 7 and other forms of bankruptcy, and help you choose the approach that best protects your financial future.]]> On Behalf of Byman & Associates PLLC <![CDATA[Could bankruptcy save your marriage?]]> https://www.bymanlaw.com/?p=53650 2026-07-01T02:49:52Z 2026-07-01T02:49:52Z 54% of respondents considered a spouse’s debt a reason to consider filing for bankruptcy.

Trust can suffer

A couple must be able to trust each other. Debt can drive wedges into that trust when one spouse feels the other was more to blame than for it than them. For instance, a couple may face a medical bill they cannot afford if their child has a serious accident. Even though both would do anything to see their child healthy again, blame and guilt may seep in. An example: One spouse racks up too much credit on the joint card. The other spouse disapproves of their spending and feels it is stifling their ability to spend on other things, such as saving for a deposit on a home. Next time either party goes to spend on something they know the other would disapprove of, they hide it. They are worried their spouse will get upset with them over it, and they also may feel guilty knowing that an item was not a necessity. On top of this, people can spend a lot of time and mental energy on thinking about the debt. That is time that is not being invested in maintaining the relationship. Worrying about how to repay debt can also put people on edge, leaving them less tolerant, which can mean simple discussions may more easily turn into arguments.

Credit scores can suffer

A spouse with a healthy credit rating may fear that their spouse’s spending will end up harming their credit score. They may fear that even though the debts were incurred by the other person, the lenders may come after their assets, too. Learning more about how bankruptcy works is a wise first step for anyone who is in overwhelming debt -- especially if it is negatively affecting their marriage.]]> On Behalf of Byman & Associates PLLC <![CDATA[What assets are exempt during a Texas bankruptcy?]]> https://www.bymanlaw.com/?p=53648 2026-06-16T15:48:02Z 2026-06-16T15:48:02Z One of the first things that people want to know when they’re considering bankruptcy is what will happen to all their things. A common misconception is that they will lose everything they worked for. Some assets can be seized by the trustee overseeing the bankruptcy so they can be liquidated to pay creditors; however, the trustee may bypass this process if the assets won’t make a significant difference in the creditor balances.  The truth is that Texas offers exemptions that allow bankruptcy filers to keep certain assets as long as they meet specific requirements. Filers have to choose between the exemptions that are allowable under Texas law or those that apply under federal law. It’s not possible to mix and match these, so a firm decision must be made. 

Many people look at the homestead exemption

Texas law provides for a more generous homestead exemptions than federal law allows. The state exemption provides protection for equity in a primary residence, but there are acreage limits present, based on whether the property is urban or rural. 

Other exemptions under Texas law

Texas has protections in place for many other types of property, such as personal property. This includes things like tools, firearms, livestock, vehicles and other types of property. There are limits that apply to the personal property. Vehicles may also be protected, but this depends on how many members of the household are licensed.  Retirement accounts, certain government payments and specific public benefits can also be exempted from the bankruptcy process. Because exemptions can vary from one case to another, it’s critical to work with someone familiar with this process so bankruptcy filers can ensure they’re doing what’s in their best interest.   ]]> On Behalf of Byman & Associates PLLC <![CDATA[3 common mistakes before a bankruptcy filing]]> https://www.bymanlaw.com/?p=53646 2026-06-15T17:39:32Z 2026-06-15T17:39:32Z Paying money to family members or friends You may feel a strong moral obligation to repay a personal loan from a relative before you address institutional credit cards. The bankruptcy court views this choice as a preferential transfer. Court-appointed bankruptcy trustees closely review all financial records. The court has the authority to claw back any payments made to insiders within 12 months prior to your filing date. This rule remains active and current as of June 2026. The court will recover those funds directly from your loved ones to distribute the cash evenly among your corporate creditors.

Moving assets out of your name

Attempting to protect your property by signing a vehicle title over to a child is a major mistake. This choice triggers a fraudulent transfer investigation by the court. Under Texas law, you can generally protect up to $50,000 in personal property for single individuals or $100,000 for families. These limits are current as of June 2026. Moving assets out of your name can trigger severe penalties:
  • The court can deny your entire debt discharge.
  • The court can reverse the transfer of the asset.
  • The court can liquidate the property under a Chapter 7 case.
Furthermore, federal rules impose a statutory homestead equity cap if you have owned your Texas home for less than 1,215 days before filing.

Taking on new debt before you file

Using your credit cards to buy luxury goods right before you file will jeopardize your case. Debt incurred within 90 days of filing for luxury goods over specific statutory limits triggers a legal assumption that you never intended to pay the money back. This rule means the court automatically assumes the worst, which shifts the legal burden to you to prove the spending was honest. Creditors will file a lawsuit within your bankruptcy case to prevent that specific balance from being wiped away.

Secure a strategic financial reset

Proactive planning ensures that your financial asset strategies match the exact requirements of the local court. Navigating these rules successfully requires an early evaluation of your financial timeline. Scheduling a consultation with a Pearland bankruptcy attorney remains a vital next step to protect your property and clear your path toward a stable financial future.  ]]> On Behalf of Byman & Associates PLLC <![CDATA[How long does the automatic stay prevent collection attempts?]]> https://www.bymanlaw.com/?p=53644 2026-06-03T23:06:59Z 2026-06-03T23:06:59Z Protection 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=53641 2026-05-22T12:22:15Z 2026-05-22T12:22:15Z Financial 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=53638 2026-05-20T13:39:53Z 2026-05-20T13:39:53Z How 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=53636 2026-05-08T01:50:34Z 2026-05-08T01:50:34Z A 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.]]>