William H. Lively, Jr. WHL, PLLC Bankruptcy Lawyer Tyler TX | Foreclosure Defense | Chapter 7 & 13 2026-06-26T06:25:49Z https://www.williamlivelylawfirm.com/feed/atom/ WordPress /wp-content/uploads/sites/1503682/2021/08/cropped-SiteIdentity-32x32.jpg On Behalf of William H. Lively, Jr. WHL, PLLC <![CDATA[Can bankruptcy stop a car repossession in Texas?]]> https://www.williamlivelylawfirm.com/?p=52034 2026-06-26T06:25:49Z 2026-06-26T06:25:49Z A bankruptcy filing triggers an immediate halt to repossession The moment you file for bankruptcy, something called the automatic stay goes into effect. This is a court order that immediately stops most collection actions, including car repossession. It does not matter if the lender has already dispatched a tow truck. If the repossession is actively in progress but not yet completed, the process must cease. If your vehicle has already been repossessed, the stay prevents its sale, but recovering it requires prompt legal action within the bankruptcy court. The automatic stay buys you time. It does not permanently resolve the problem, but it allows you to evaluate your next step.

Chapter 13 bankruptcy can help you catch up and keep your car

Chapter 13 lets you establish a three to five-year repayment plan to catch up on missed payments while retaining your vehicle. Provided you remain current on your plan payments, the lender cannot repossess your car. It may also allow you to reduce what you owe to the car's current market value, a process called a cramdown, if the loan is more than 910 days old. This can reduce both your outstanding balance and your applicable interest rate

Chapter 7 bankruptcy buys you time, but not a repayment plan

Chapter 7 also stops a repossession right away. However, it does not provide a mechanism to catch up on missed payments over time. If you are behind, you will need to either cure the default promptly, redeem the vehicle by paying its present value in a lump sum, or reaffirm the debt with the lender. If you are current on payments and need relief from other debt, Chapter 7 may be a strong fit. If you are behind and need time to catch up, Chapter 13 is typically the more prudent path.

You have more options than you think

Losing your car makes everything harder in your daily life. If you are in Texas and facing repossession, recognize that filing for bankruptcy does not constitute a failure. It is a legal remedy expressly designed for circumstances such as these. Seeking counsel from a bankruptcy attorney before time runs out is the first step toward protecting what you need most.  ]]> On Behalf of William H. Lively, Jr. WHL, PLLC <![CDATA[5 mistakes to avoid when filing Chapter 7 in Texas]]> https://www.williamlivelylawfirm.com/?p=52028 2026-05-26T13:57:07Z 2026-05-26T13:56:14Z You want a clean financial slate in Texas so you plan to file Chapter 7. The right timing and choices affect what you keep and what you erase. Simple steps before you file may protect income, property and peace. With a short checklist, you can sidestep common traps and move forward.

Did you know these mishaps can derail a bankruptcy claim?

Chapter 7 moves fast and small errors can cost you money or assets. Focus on choices that affect eligibility, exemptions and secured debts. Watch for these common missteps:
  • Filing at the wrong time: The means test uses your last six months of income. A bonus, new overtime or a job change can skew the numbers and push you over. Recent luxury charges or cash advances may face challenge and stay on your tab.
  • Picking the wrong exemptions: Texas lets you choose state or federal exemptions. The state homestead can protect significant equity but acreage and use rules still matter. Compare what you own with each list before you choose.
  • Moving or gifting assets before you file: Transfers to family, bargain sales and big gifts raise red flags. A trustee may sue to claw back a car or cash and the court may deny your discharge for fraud.
  • Reaffirming a debt you cannot carry: Lenders may push a car reaffirmation that locks you in. If your budget strains, you keep the debt and still risk repossession after a missed payment.
  • Ignoring bank and tax refund traps: Your bank may take funds in your account to cover its own card or loan. Plan for refunds that arise from pre-filing wages because a trustee may claim a slice.
With those pitfalls in view, you can time your filing, protect key assets and lower stress. Careful planning and calm steps can help you keep what matters and get a cleaner reset. Thoughtful legal support could help you weigh options, pick the right moment and avoid costly surprises.  ]]> On Behalf of William H. Lively, Jr. WHL, PLLC <![CDATA[How can you rebuild your credit score after a Chapter 13 bankruptcy?]]> https://www.williamlivelylawfirm.com/?p=52023 2026-04-28T11:22:28Z 2026-04-28T11:22:28Z Understanding the impact on your credit Chapter 13 bankruptcy will remain on your credit report for several years from the filing date. During this time, you might see a significant drop in your credit score. However, this does not mean you are stuck with poor credit for the entire period. You might begin seeing improvements within a year or two of completing your repayment plan. The key is to start taking positive steps as soon as possible. Your credit score is based on your recent financial behavior, so the sooner you establish good habits, the faster you may see progress.

Practical steps to rebuild your credit

First, consider getting a secured credit card. With these cards, you put down a cash deposit that usually determines how much you can spend. You could use it for small purchases and pay the balance in full each month. Doing so could demonstrate responsible credit use without putting you at risk of accumulating debt. Next, it would be beneficial if you paid all your current bills promptly. Payment history is the most significant factor in your credit score. Set up automatic payments or reminders to ensure you never miss a due date. Even utility bills and rent payments can sometimes be reported to credit bureaus. You might also explore credit-builder loans offered by credit unions and banks. These loans aim to help people establish or rebuild credit. Your monthly payments build up in a savings account, and you gain access to that money after completing all the payments. You might also want to monitor your credit reports regularly through the three major credit bureaus. You are entitled to free annual reports, so take advantage of this to check for errors or inaccuracies that could be dragging down your score. Remember, rebuilding credit is a marathon, not a sprint. Stay patient, remain consistent with good financial habits and avoid taking on more debt than you can handle. With dedication, you can move forward from bankruptcy and create a stronger financial foundation.]]> On Behalf of William H. Lively, Jr. WHL, PLLC <![CDATA[Can I still use my credit card after filing for bankruptcy?]]> https://www.williamlivelylawfirm.com/?p=52019 2026-03-25T15:38:50Z 2026-03-25T15:38:50Z Filing for bankruptcy offers a fresh start, yet many Texans fear this reset means losing their financial tools forever. However, if you file for either a chapter 7 or chapter 13 bankruptcy in Texas, you must follow strict rules regarding your credit cards to ensure successful financial recovery.

Why you can no longer use your credit cards after filing

Generally, you cannot and should not use your existing credit cards once you file. Federal law requires you to disclose all creditors in your filing, even your credit card accounts with zero balance. Once the court notifies these banks, they will almost certainly close your accounts to mitigate their risk. While Texas law protects your home and car, it treats unsecured debts like credit cards as part of the discharge. Because banks typically close these accounts the moment you file, you must exercise extreme caution to avoid legal complications before your petition hits the court.

The hidden risks of pre-filing spending

While the law helps you, it does not provide a get out of debt free card for recent shopping sprees. If you use your cards too close to your filing date, a judge may view those charges as fraudulent, which can jeopardize your entire filing. Before you submit your petition, you must track two specific presumption of fraud thresholds.
  • Luxury goods: Charging around 800 to 900 dollars for non-essential items to a single creditor within 90 days of filing signals an intent to defraud.
  • Cash advances: Taking around 1,100 to 1,250 dollars in total cash advances within 70 days of your filing often triggers a direct legal challenge from your issuer.
If the court determines you made these charges in bad faith, you remain legally responsible for them even after the court wipes your other debts clean. Hence, avoiding these pitfalls ensures the timing of your charges does not negatively impact your recovery timeline.

When can you use a credit card again?

Your ability to swipe a card again largely depends on which path you take. Because each bankruptcy chapter has a different lifespan, the court oversees your financial behavior differently in each case. Here are the specific rules of your filing that dictate your road back to credit access:
  • Chapter 7: This process typically concludes in three to four months, leaving you free to apply for new credit lines like secured cards.
  • Chapter 13: This requires a three to five year repayment plan, meaning you cannot take on new debt without the court’s approval during this period.
By understanding these two distinct paths, you can better prepare for the period of credit silence your case requires. This temporary pause facilitates your transition toward a credit-smart lifestyle.

Moving forward with confidence

Following these rules with professional guidance helps make your financial reset last. It can help you avoid simple timing mistakes that lead to costly setbacks, so you can stay focused on your financial future.]]> On Behalf of William H. Lively, Jr. WHL, PLLC <![CDATA[What income limits apply for Chapter 7 in Texas]]> https://www.williamlivelylawfirm.com/?p=52008 2026-02-20T10:47:47Z 2026-02-20T10:47:47Z Bills can pile up fast after a job loss, medical crisis or business slowdown. If you live in Tyler and are thinking about Chapter 7 bankruptcy, one of the first questions you may have involves income limits.  Filing does not simply depend on how much debt you carry. Instead, your household income and allowable expenses often determine whether you can move forward under Chapter 7. Knowing how the process works can help you see where you stand before taking any steps.

How the Texas means test works

To figure out eligibility, Chapter 7 uses a formula called the means test. To see if you qualify, your income over the past six months is checked against the average earnings for a Texas household of the same size to determine eligibility. The U.S. Census Bureau and the Executive Office for U.S. Trustees publish these figures and update them regularly, which means the numbers can change from year to year. If your income falls below the Texas median, you usually pass the income portion of the means test for Chapter 7. However, the court can still review your case for abuse.  For example, a single filer in Tyler earning less than the state median for one person may pass the first part of the test. A married couple with two children would compare their combined income to the median for a four-person household. Even if your income exceeds the median, you do not automatically lose eligibility. The next step of the means test can still reveal deductions that lower your effective income and may allow you to qualify. Understanding this step can help you see the full picture before making decisions.

What counts when calculating your income

The means test looks at most sources of income received during the 6 months before filing. That can include:
  • Wages from your job in Tyler or nearby Smith County
  • Overtime pay or bonuses
  • Income from a small business or side work
  • Rental income
  • Regular contributions from a spouse
These examples show how wide the scope of income can be. Certain benefits, such as Social Security, may not count toward the total. Accurately calculating income is essential for determining eligibility for Chapter 7 and accessing bankruptcy protection.  Since every financial situation is unique, reviewing it with a knowledgeable professional can make the path forward more clear.

Seeing the path forward

Looking at your recent income in light of Texas median limits can clarify whether Chapter 7 offers a realistic path forward. Reviewing pay stubs, business records and other income sources may reveal options you did not realize you had. Taking time to understand these details can make the process less stressful and give you confidence in evaluating your choices.]]> On Behalf of William H. Lively, Jr. WHL, PLLC <![CDATA[Will filing for Chapter 7 clear your HOA dues and lien?]]> https://www.williamlivelylawfirm.com/?p=52004 2026-01-19T15:40:11Z 2026-01-19T15:40:11Z What happens to your overdue HOA fees? Since unpaid HOA dues are personal liability, these are dischargeable under Chapter 7 bankruptcy. This means you will no longer be personally liable for them. Additionally, a federal automatic stay goes into effect, preventing the HOA from sending you delinquency notices. They also cannot sue you personally, take money from your bank account or garnish wages. However, this discharge does not apply to any assessment that becomes due after the filing. You must continue to pay these dues to stay in good standing, especially if you maintain a legal or possessory interest in your home.

Can bankruptcy erase the HOA lien on your house?

Unfortunately, a bankruptcy filing cannot erase the HOA lien on your house. Because it is a property liability, the debt is attached to the land. Chapter 7 does not automatically remove statutory liens in Texas, leaving your house vulnerable to foreclosure. Once your bankruptcy case closes, the HOA can pursue an Expedited Judicial Foreclosure. They must obtain a court order before proceeding with a sale, which provides a window of time for negotiation.

Taking action to protect your home

The best defense is a proactive one. Avoid waiting for a foreclosure notice. The high stakes of your situation can be difficult to navigate alone. A seasoned attorney can help you negotiate a plan that protects your equity.]]> On Behalf of William H. Lively, Jr. WHL, PLLC <![CDATA[What is a cramdown in a Chapter 13 bankruptcy?]]> https://www.williamlivelylawfirm.com/?p=51996 2025-12-23T16:33:26Z 2025-12-23T16:33:26Z How can debt reorganization help you? Chapter 13 is a form of debt reorganization that lets people settle their balance over the course of approximately three to five years. It is what allows people to get cramdowns to help them reduce their debts. Cramdowns are named as such because they “cram down” the debt and reduce it to the fair market value, so long as you file for Chapter 13 bankruptcy. This process helps debtors in numerous ways:
  • Lowers secure debt: Cramdowns reduce the principal debt to the fair market value of the collateral.
  • Reduces monthly payments: By reducing the debt, cramdowns cut down high interest rates, meaning you spend less per month.
  • Retain valuable assets: Cramdowns and Chapter 13 bankruptcy restructure your debt loans and protect your belongings from repossession.
Many people in Texas use cramdowns to help them recover financially after filing under Chapter 13. Cutting the debt down to the market value of property eliminates the deficiency balance and makes it easier for you to retain the assets you need to recover financially.

Seeking legal guidance

Understanding Chapter 13 bankruptcy can be difficult without guidance from a legal professional. Many people turn to their attorneys for advice, helping them make sense of the laws and limitations concerning their debts, as well as what rights they have.]]> On Behalf of William H. Lively, Jr. WHL, PLLC <![CDATA[3 key benefits of Chapter 13 bankruptcy for financial recovery]]> https://www.williamlivelylawfirm.com/?p=51993 2025-12-02T07:49:57Z 2025-12-02T07:49:57Z Whether it was a sudden setback or months of mounting bills, financial pressure can build slowly, and by the time it feels unmanageable, many people believe they have run out of options. In moments like these, it can be easy to assume that bankruptcy offers only harsh outcomes. Yet Chapter 13 provides a more flexible way that allows you to regain stability without losing the foundation you depend on. Below are three ways this form of bankruptcy may support a more balanced and realistic financial recovery.

1. You keep essential property while paying down overdue debt

Chapter 13 allows you to keep your home, car and other key assets while you complete a structured repayment plan. This can be especially important if you have fallen behind on a mortgage or auto loan but still want to protect your property. Instead of facing foreclosure or repossession, you can pay past-due amounts over time. This approach offers stability and gives you space to rebuild your finances without losing the items that help you maintain daily life.

2. You get immediate protection through the automatic stay

The automatic stay begins as soon as you file. It stops most collection actions, including wage garnishments, lawsuits and phone calls from creditors. That pause can make a noticeable difference in your day-to-day stress level because it removes the constant pressure that often comes with overdue debt. With collections on hold, you gain time to review your budget, understand your obligations and work with clarity rather than fear.

3. You follow a repayment plan built around your income

A Chapter 13 plan usually lasts three to five years and is designed to match your financial reality. You make one monthly payment, and the court reviews your income and expenses to ensure the amount is realistic. Many people find that this structure helps them stay organized and avoid the confusion of juggling multiple deadlines.  Together, these features show how Chapter 13 can provide structure without removing your sense of control.

The support you need for a more stable financial future

Choosing whether to file for bankruptcy is a major decision, but learning about your options can help you protect your assets and rebuild on a steadier footing. For guidance that fits your situation, consider speaking with a bankruptcy attorney who can help you plan your next steps.]]> On Behalf of William H. Lively, Jr. WHL, PLLC <![CDATA[Will bankruptcy filing shut off my utility services in Texas?]]> https://www.williamlivelylawfirm.com/?p=51992 2025-10-30T09:12:19Z 2025-10-30T09:08:36Z Utility shut-offs are often one of the most immediate and terrifying concerns when facing financial distress. The thought of losing essential services like electricity, water or heat can feel like the final blow to your situation. Will filing for bankruptcy only make this worse? The good news for anyone considering this financial lifeline is that federal law provides significant protections regarding essential utility services.

The automatic stay and immediate protection

As soon as you declare bankruptcy in Texas, the automatic stay, a court-ordered injunction, instantly takes effect. This stay requires most creditors to stop all collection activities, including those from utility companies, instantly. A utility company cannot alter, refuse or stop your service just because you filed for bankruptcy or owe them money for services used before the filing date. This protection generally applies to electricity, gas, water and telephone services. This legal mechanism gives you crucial time to address your debt without the threat of a dark or cold house.

The 20-day clock begins

The automatic service protection is not permanent; it only provides a short-term shield. To maintain service long-term, you will need to provide "adequate assurance" of payment within 20 days of filing your bankruptcy petition. The goal of adequate assurance is to protect the utility company from losing money on services provided to you after you file bankruptcy. The specific amount requested often equals about two months of average service charges. If you fail to meet this 20-day deadline, the utility company can then legally shut off your service. This is a critical period in any bankruptcy case.

How to satisfy "adequate assurance"?

The law accepts several forms of adequate assurance, including:
  • A cash deposit: This is the most common and simplest form.
  • A letter of credit: This offers a promise of payment a financial institution guarantees.
  • A surety bond: A third party secures this bond, guaranteeing payment.
  • A prepayment of utility consumption: You pay for future service in advance.
You and the utility company can mutually agree on a form of security. If you feel the deposit the utility demands is too high, you can ask the Bankruptcy Court to review and modify that amount.

Protect your fresh start

Bankruptcy law gives you a powerful tool to keep your essential services connected. It is advisable not attempt to manage the sensitive deadlines and legal demands alone, particularly the 20-day adequate assurance requirement. An experienced legal professional can help secure the benefit of the automatic stay and maintain stability for your family.]]> On Behalf of William H. Lively, Jr. WHL, PLLC <![CDATA[What are the limits on repeat bankruptcy filings?]]> https://www.williamlivelylawfirm.com/?p=51985 2025-09-25T15:43:30Z 2025-09-25T15:43:30Z Bankruptcy gives people a chance to rebuild when debt becomes overwhelming, but filing again too soon after a previous case comes with limits. Understanding the rules for repeat filings helps set clear expectations before taking another step forward.

Timeframes between filings

The waiting period depends on the bankruptcy chapter filed previously and the chapter considered for the new case. If someone filed Chapter 7 before, they must wait eight years to file Chapter 7 again. However, switching from Chapter 7 to Chapter 13 requires only a four-year gap. For those who filed Chapter 13 initially, a repeat Chapter 13 discharge can happen after just two years. Switching from Chapter 13 to Chapter 7 usually requires a six-year wait, though this period can shorten if the filer completed repayment requirements or covered a significant portion of unsecured debt in the first case.

Repeat filings after dismissal

If a court dismissed the earlier case without a discharge, another filing can happen right away. Still, certain situations may create a 180-day waiting period. For example, skipping a required court appearance or ignoring court orders could delay eligibility to file again.

Impact on automatic stays

An automatic stay normally stops creditors from collecting while a bankruptcy case moves forward. In repeat filings, however, these protections shrink. Filing again within one year of a prior case limits the stay to 30 days. Filing multiple times in a year may eliminate the stay altogether unless the court orders otherwise.

Why timing matters

Filing too soon not only limits discharge options but can also extend credit challenges. Each bankruptcy appears on credit reports for years, and repeat filings compound the damage. Careful timing helps protect the fresh start bankruptcy is designed to provide.]]>