Byman & Associates PLLC Byman & Associates PLLC 2026-09-29T10:43:20Z 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[Can Chapter 13 help with back taxes in Texas?]]> https://www.bymanlaw.com/?p=53688 2026-09-29T10:43:20Z 2026-09-29T10:43:20Z Steps and deadlines in the Chapter 13 process Filing for Chapter 13 starts a structured process with strict deadlines. Each step affects how the court handles the tax debt. The process usually includes:
  • An automatic stay and notice: Filing a bankruptcy petition triggers an automatic stay. This generally stops collection efforts by the IRS and state agencies, including wage garnishments, bank levies and property seizures.
  • A repayment plan submission: Within 14 days, the filer proposes a three-to-five-year plan. The plan must pay priority tax debts in full. Older qualifying income tax debts may qualify for discharge instead.
  • A meeting of creditors and confirmation: A trustee holds a Section 341 meeting 20 to 50 days after filing to review income records and tax returns. A judge then holds a hearing to approve or reject the plan.
  • Plan execution and discharge: The filer makes monthly payments to the trustee and stays current on new tax obligations.
Missing a filing deadline or falling behind on plan payments can result in case dismissal. If the bankruptcy is dismissed, the automatic stay ends and collection actions resume immediately. Interest and penalties will also continue to accrue on the remaining balance. Because of these strict consequences, filers must carefully track all court deadlines and payment dates throughout the entire process.

How Chapter 13 handles different types of tax debt

Chapter 13 does not treat all tax debts the same way. Recent income, payroll and Texas sales taxes usually carry priority status. Filers must pay these in full. Older income tax debts that meet specific age and filing rules can qualify as nonpriority debt. Filers may discharge part of this amount. A recorded tax lien works differently. It can attach to the filer's property and remain a secured claim during and after bankruptcy.

Understanding Chapter 13 and tax debt

Chapter 13 can help filers address back taxes in Texas. The amount of relief depends on how bankruptcy rules classify the debt. Careful planning and timely compliance help filers manage tax debt through a structured plan. Bankruptcy can also shield filers from certain collection actions while the case is pending. Anyone facing significant tax debt should review their options early and keep track of applicable deadlines.    ]]> On Behalf of Byman & Associates PLLC <![CDATA[Can you still qualify for Chapter 7 if you have a full-time job?]]> https://www.bymanlaw.com/?p=53685 2026-09-22T07:08:23Z 2026-09-22T07:08:23Z How the means test works Chapter 7 usually starts with a means test. The test compares your average monthly income from the six months prior to filing with the median income for a household of the same size in your state. The applicable median amount varies based on how many people are in your household. If your income is above the median, the analysis may continue. That second step looks at certain expenses and deductions to see whether you have money left over to pay creditors. A steady job does not decide the result by itself.

When full-time workers may still qualify

Many people with full-time jobs still qualify for Chapter 7. Qualification often depends on whether your necessary living expenses balance out your total earnings. The means test may account for:
  • Housing costs
  • Transportation costs
  • Taxes and insurance payments
  • Child support or similar obligations
  • Medical expenses
  • Other allowed expenses
In some cases, other legal exceptions may also affect whether the means test applies.

What happens after eligibility is established?

Passing the means test does not mean every asset is protected or every debt can be erased. Your property must still be reviewed under the exemption rules, and some debts may not be discharged. For a Texas resident, both federal and Texas exemption rules may matter when deciding whether Chapter 7 is the right fit.

What full-time workers should consider before filing

Having a full-time job does not rule out Chapter 7 bankruptcy. What matters most is how your income, expenses, debts and assets fit the bankruptcy rules. A bankruptcy attorney can review your financial information and explain whether Chapter 7 may be an option.]]> On Behalf of Byman & Associates PLLC <![CDATA[How to object to an inaccurate creditor claim in Texas]]> https://www.bymanlaw.com/?p=53673 2026-09-18T09:47:37Z 2026-09-18T09:47:37Z Reviewing the proof of claim Creditors usually file a document known as a proof of claim to get payments in your case. You can examine these filings for wrong balances, high interest rates or late fees that do not match your records. Finding errors early is important because federal bankruptcy laws assume they are valid unless challenged. These documents are available through the court system for your review.

Filing a formal objection

A debtor or trustee may file a written objection if they identify errors in a creditor's proof of claim. It should include the legal reasons why the claim is wrong and proof to back them up. Keeping financial records helps show that the amount sought is more than what you owe. This step is especially key in Chapter 13 cases where wrong claims could increase your monthly payment.

Knowing what the court hearing entails

Once you file your objection, the court gives the creditor a specific deadline to respond to your objection. If the creditor responds and rejects your objection, the court sets up a formal hearing. However, if the creditor does not respond, the court may rule without a formal hearing. A judge usually reviews the proof to find the correct amount of the debt. You may need to provide bank statements or payment receipts to show the error in the creditor's filing.

Safeguarding your financial future

Challenging these claims can help make sure that your bankruptcy plan only pays real debts. Reaching out to a legal professional who knows the details of local bankruptcy rules can help you manage this task.]]> On Behalf of Byman & Associates PLLC <![CDATA[What to do if you miss a deadline on a Chapter 13 repayment plan?]]> https://www.bymanlaw.com/?p=53668 2026-09-11T09:22:59Z 2026-09-11T09:22:59Z Missing a Chapter 13 repayment deadline can feel daunting. A missed payment feels like it could jeopardize everything you have built. But while a missed deadline is serious, it does not mean your case is over. Bankruptcy courts often recognize that life brings unexpected financial hardships, like medical bills or job loss. Thus, understanding your options can help you respond promptly and decisively.

What is a Chapter 13 filing?

Before looking at what happens when you miss a payment, it helps to understand how Chapter 13 works. Also known as a wage earner's plan, Chapter 13 allows you to retain your property while repaying debts over three to five years. You propose a repayment schedule and if your income falls below the Texas state median, your plan typically runs for three years. This filing suits individuals with steady income who want to protect their assets.

What happens if you miss a monthly payment?

Now that you understand how Chapter 13 works, you need to understand the implications of a missed payment. A single missed payment can trigger a series of legal and financial consequences. Here is what could happen:
  • You have no grace period: There is no federal grace period for Chapter 13 payments, so complications can arise right away.
  • You may face a Motion to Dismiss: The trustee can file a Motion to Dismiss for Material Default, putting your entire case at risk.
  • You could lose your automatic stay: If the court dismisses your case, creditors can resume collection lawsuits, wage garnishments, repossessions or foreclosures.
  • You risk a case conversion: The court may convert your case into a Chapter 7 liquidation, changing how the court manages your debts and assets.
While these outcomes sound alarming, they are not automatic. You still have time to act.

Steps you can take to stay on track

Fortunately, you have viable options before circumstances deteriorate further. Here are steps you can take right away:
  • Catch up on payments quickly: Pay the missed amount as soon as possible, or add extra funds to your next payment if the trustee allows it.
  • Contact an attorney right away: Reaching out early gives you more time to explore options before the trustee acts.
  • File a formal plan modification: A request for payment modification can help lower your payments or extend your timeline if your income has dropped permanently.
  • Consider converting to Chapter 7: If your financial circumstances have changed significantly, a legal professional can help you evaluate whether Chapter 7 is a more viable path forward.
Taking action early gives you more options and a greater likelihood of protecting your case.

Keep your repayment plan secure with proactive planning 

Staying ahead of your Chapter 13 plan requires consistent effort and a clear understanding of your legal options. A missed payment does not have to define your case. What matters most is how quickly you respond. Remaining informed about your plan terms, maintaining open communication and acting early when challenges arise can protect everything you have worked hard to keep. With a proactive mindset, you can navigate financial setbacks and proceed with confidence.]]> On Behalf of Byman & Associates PLLC <![CDATA[3 reasons small businesses run into overwhelming debt]]> https://www.bymanlaw.com/?p=53666 2026-08-14T17:31:08Z 2026-08-14T17:31:08Z Small businesses sometimes have to file for bankruptcy if there are issues with overwhelming debt. It can be helpful for business owners to know why this happens so that they can see red flags that may indicate bankruptcy will be needed in the future. Every situation is unique, but the following are three potential reasons why a small business could run into significant issues with debt.

Limited initial funding without positive cash flow

First and foremost, many small businesses have initial funding, perhaps from investors or money that the business owner set aside. But this funding may only last for a certain amount of time. If there is no positive cash flow, for example, the business could run out of funding after the first year, meaning that the standing budget is no longer viable.

Changes to the market and target audience

Another issue is if there is not a demand for the products or services that the business is offering. This could happen because of changes to the market or the target audience. Perhaps that audience has shifted to different consumer trends, for example, or perhaps new competitors were introduced into the local market, meaning that the area cannot support all of the businesses.

Ineffective long-term budgeting

Finally, it is very important for small business owners to make a long-term budget. It can be helpful if this is relatively lean, making it easier for them to pay their bills. Some companies will spend money rapidly at the beginning, perhaps trying to quickly ramp up operations and expand, but that type of growth just is not sustainable if there is not enough revenue. When debt becomes overwhelming, business owners need to look into all of their legal options, which could include filing for bankruptcy.  ]]> On Behalf of Byman & Associates PLLC <![CDATA[3 key protections Chapter 13 can provide homeowners in Texas]]> https://www.bymanlaw.com/?p=53664 2026-08-10T10:27:12Z 2026-08-12T13:00:21Z Mortgage trouble can develop over time, but the risk of foreclosure can feel immediate. Missed payments may bring collection notices, added costs and concern about whether the home can be kept. For homeowners who feel they are running out of options, bankruptcy may provide a way to deal with financial problems without giving up the home right away. For some Texas homeowners, Chapter 13 bankruptcy offers a way to reorganize debt through a court-approved repayment plan. The process can also provide legal protection while the case moves forward. Every financial situation is different, but understanding these protections can help homeowners assess their options. Here are three key ways Chapter 13 can aid homeowners. 

1. A temporary stop to foreclosure

One of the most immediate protections in a Chapter 13 case is the automatic stay. In most cases, the stay takes effect when the bankruptcy case begins. It can temporarily stop foreclosure and other collection efforts. The automatic stay does not erase mortgage debt or guarantee that a homeowner will keep the property.The stay can give homeowners more time to address overdue payments and work out a repayment plan through bankruptcy. 

2. An opportunity to catch up on missed mortgage payments

Chapter 13 allows many homeowners to repay past-due mortgage payments over three to five years rather than paying the entire amount at once. During this period, homeowners generally continue making their regular monthly mortgage payments while the plan addresses the overdue balance. This structure can make a large past-due balance easier to manage. It may also give homeowners time to bring their mortgage current while addressing other debts through the same bankruptcy case.

3. A more manageable approach to debt

Chapter 13 can address more than mortgage arrears. It may also bring other secured and unsecured debts into the same repayment process. This structure can make it easier to manage several debts at the same time. The protections and repayment terms available under Chapter 13 depend on factors such as income, debts and other financial situations. Not every homeowner will qualify for the same treatment. Understanding how it works can help homeowners decide whether it may fit their needs.

A chance to regain control

Falling behind on a mortgage can leave homeowners facing difficult choices at a time when financial pressure is already high. The fear of foreclosure can make it harder to see a clear path forward, especially when missed payments are only one part of a larger debt problem.  Chapter 13 may give some Texas homeowners a structured way to address what they owe while working to keep their homes. It does not provide the same solution for everyone, and eligibility and available protections depend on the facts of each case. A Texas bankruptcy attorney can review a homeowner's circumstances, explain what Chapter 13 may offer and help them understand their options before deciding how to move forward. ]]> On Behalf of Byman & Associates PLLC <![CDATA[How often can you file for bankruptcy?]]> https://www.bymanlaw.com/?p=53662 2026-08-05T11:01:58Z 2026-08-05T11:01:58Z If debt is causing you financial strain, then you may be eligible for bankruptcy. Bankruptcy is a process that allows you to relieve large amounts of debt in a few months or years. This debt can include credit card debt, medical bills and personal loans. The two most common forms of bankruptcy are Chapter 7 and Chapter 13 bankruptcy. Many people fall back into debt after filing for bankruptcy. These people may want to know if they can file for bankruptcy again. If you are looking to file a second bankruptcy, then you should read the following:

Waiting periods for a second bankruptcy

If you have filed for bankruptcy in the past, then you may need to wait to file a second bankruptcy. The waiting period typically starts from the date the first bankruptcy was filed. Here is how long you may need to wait:
  • Chapter 7 to Chapter 7: Eight years
  • Chapter 13 to Chapter 7: Six years
  • Chapter 7 to Chapter 13: Four years
  • Chapter 13 to Chapter 13: Two years
Why do you have to wait so long for some forms of bankruptcy and not others? How long you have to wait to file for a second bankruptcy will depend on the first filing. The timelines are meant to discourage filers from abusing financial recovery options.  These waiting periods apply to previous successful bankruptcy discharges. If a bankruptcy is dismissed for failing to follow court orders or missing required hearings, a filer may not be eligible for another filing for six months.  Do you have questions about bankruptcy? Talking to someone who knows bankruptcy laws can help you understand your options. ]]> 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.]]>