William H. Lively, Jr. WHL, PLLC Bankruptcy Lawyer Tyler TX | Foreclosure Defense | Chapter 7 & 13 2026-10-23T08:06:44Z 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[How can Chapter 7 bankruptcy affect your credit score?]]> https://www.williamlivelylawfirm.com/?p=52088 2026-10-21T13:31:06Z 2026-10-21T13:31:06Z Your score will likely decline Chapter 7 typically lowers your credit score, though the size of that drop depends on your credit history. Someone with strong credit usually sees a steeper drop than someone whose report already shows several missed payments. For example, late mortgage installments might have already pushed your score down before you file. Bankruptcy can still add a serious negative entry, but no fixed number of lost points applies to everyone. A lower score could lead to higher interest rates or denied applications.

Your filing remains visible for years

The bankruptcy itself can become part of your credit history. In Texas, credit reporting agencies generally cannot report bankruptcy information older than 10 years. For Chapter 7, that period runs from your filing date. However, your score does not have to stay at its lowest point for that whole decade. The negative effect generally lessens as the case ages, especially when you pay your newer accounts on time.

Your discharged balances should change

Alongside the bankruptcy entry, your individual accounts should reflect the outcome. A discharge removes your legal duty to pay debts that qualify, including most credit card balances. Those discharged unsecured accounts should show zero balances rather than amounts currently overdue. Review your credit reports after discharge and dispute any inaccurate balances with both the creditor and credit bureau. Even after those corrections, accurate records of earlier delinquencies may remain and continue to affect your score within applicable reporting limits.

Your score can gradually recover

While past problems can still appear, timely payments on a new account may help rebuild your credit history. For example, a secured card requires a cash deposit and offers a limited credit line. Small purchases and full monthly payments could establish a positive record if the issuer reports your activity.

How you can assess the financial trade-offs

Compare your essential expenses with the payments your current debts require. That comparison can help clarify the pressure on your household budget. Additionally, your plans for a home or car deserve attention too. An attorney may explain eligibility, property exemptions and alternatives so you understand the practical consequences before deciding.]]> On Behalf of William H. Lively, Jr. WHL, PLLC <![CDATA[What happens if you miss Chapter 13 payments in Tyler?]]> https://www.williamlivelylawfirm.com/?p=52061 2026-09-22T10:26:23Z 2026-09-22T10:26:23Z Chapter 13 bankruptcy gives you a court-approved plan for paying debts over time. You generally make regular payments to a Chapter 13 trustee, who distributes the money to creditors. Tyler bankruptcy cases are generally handled in the Tyler Division of the U.S. Bankruptcy Court for the Eastern District of Texas. The court identifies a Tyler divisional office and provides local Chapter 13 forms and procedures. Missing a payment does not automatically end your bankruptcy case. However, falling behind can create problems with your repayment plan. The result may depend on how many payments you missed, why you missed them and whether you can catch up.

What can happen after a missed payment?

A missed payment can put your Chapter 13 plan behind. If the problem continues, the trustee or a creditor may ask the bankruptcy court to dismiss your case. A dismissal can end the protections that came with your bankruptcy filing and allow creditors to resume collection efforts. Depending on your situation, possible ways to address missed payments may include:
  • Catching up on missed payments: Bringing the plan current can help you continue with the existing repayment schedule.
  • Requesting a plan change: A change in income or expenses may support a request to modify the plan. Under Section 1329, a modification can change payment amounts, payment duration or certain distributions. However, a modification is not automatic and must meet bankruptcy-law requirements.
  • Requesting other temporary relief: Depending on the circumstances and local procedures, a debtor may ask the court for relief related to plan payments. Approval is not automatic, and the available remedy depends on the case.
The available option depends on the facts of your case and the requirements of the bankruptcy court. Legal assistance can help you review the reason for the missed payments and determine which options may apply to your Chapter 13 plan.

Why the timing matters

A missed payment can become more serious when several payments go unpaid. For example, losing income or facing an unexpected major expense can make it harder to keep up with a three- to five-year repayment plan. Chapter 13 cases depend on continued payments, so addressing a payment problem early may help prevent the case from reaching dismissal.

Keeping your plan on track

Missing one payment does not necessarily mean your Chapter 13 case is over. Still, falling further behind can put your bankruptcy case at risk. Knowing how missed payments may affect your case can help you recognize the problem before it affects the rest of your repayment plan.]]> On Behalf of William H. Lively, Jr. WHL, PLLC <![CDATA[Can Chapter 7 bankruptcy clear old tax debt?]]> https://www.williamlivelylawfirm.com/?p=52052 2026-08-18T08:15:36Z 2026-08-18T08:15:36Z The tax return was due more than three years ago The tax must generally come from a return that was due at least three years before you filed for Chapter 7. The calculation starts with the return's original due date, including any valid extensions.

The return was filed more than two years ago

You generally must have filed the tax return at least two years before filing for bankruptcy. This rule applies even when the original return deadline was much earlier.

The IRS assessed the tax more than 240 days ago

The IRS assessment must generally occur more than 240 days before you file for Chapter 7. Certain events, such as an offer in compromise or a previous bankruptcy filing, can suspend or extend this period.

The tax debt does not involve fraud or evasion

You generally cannot discharge tax debt tied to a fraudulent return or an attempt to evade paying the tax. These debts can remain nondischargeable even when they are old enough to satisfy the timing requirements.

Check the tax debt before filing

Look at the specific tax years, return dates and assessment dates before assuming an old tax debt will disappear through Chapter 7. If your tax history includes late returns, an IRS lien or other complications, legal guidance can help you determine whether the debt qualifies for discharge. Knowing which tax debts qualify can help you make a more informed decision about filing bankruptcy.]]> On Behalf of William H. Lively, Jr. WHL, PLLC <![CDATA[Can Chapter 13 save my home? 3 things to know about bankruptcy]]> https://www.williamlivelylawfirm.com/?p=52036 2026-10-23T08:05:09Z 2026-07-22T08:00:02Z Many people spend months, or even years, trying to get ahead of growing debt. They cut expenses, pick up extra work and make difficult tradeoffs, hoping the next payment will be the one that finally creates breathing room. Sometimes those efforts are enough. Other times, the debt continues to grow despite their best intentions. When that happens, bankruptcy may become part of the conversation. Chapter 13, in particular, can help some Texans reorganize debt without immediately giving up valuable assets. Knowing how the process works can help you make informed decisions about what comes next. Here are three key things to note before filing for Chapter 13 bankruptcy.

1. Not every bankruptcy offers the same relief

Chapter 13 and Chapter 7 bankruptcy both provide debt relief, but they work in different ways. Chapter 7 focuses on eliminating many qualifying unsecured debts through liquidation, although Texas exemption laws often allow filers to keep significant property. It generally moves more quickly than Chapter 13. Chapter 13 takes a different approach. Instead of canceling eligible debts right away, it allows individuals with regular income to repay all or part of what they owe through a court-approved repayment plan that typically lasts three to five years. This option often appeals to people who have fallen behind financially but have enough income to make manageable monthly payments.

2. Chapter 13 may buy valuable time

One of Chapter 13's greatest advantages is the automatic stay, which temporarily stops most collection efforts, including foreclosure proceedings, after a bankruptcy case begins. The repayment plan gives many homeowners an opportunity to catch up on missed mortgage payments while continuing to make current ones. Chapter 13 may also help reorganize certain secured debts, repay some tax obligations over time and combine eligible debts into one monthly payment. Whether these benefits apply depends on your financial circumstances, income and ability to complete the repayment plan.

3. Some financial challenges remain after filing

Although Chapter 13 offers meaningful relief, it cannot eliminate every financial obligation. Most child support, spousal support and many recent tax debts remain payable. Student loans also generally survive bankruptcy unless very limited legal exceptions apply. Chapter 13 also requires commitment. Missing payments under the repayment plan may put the case at risk, and rebuilding credit usually takes time after the bankruptcy process ends. Understanding both the advantages and the limitations of Chapter 13 can help you set realistic expectations before filing.

Legal guidance can help you plan ahead

Bankruptcy is not a one-size-fits-all solution. An experienced Texas bankruptcy attorney can evaluate your financial circumstances, explain whether Chapter 13 or Chapter 7 better aligns with your goals and guide you through every step of the process. 

Book a free consultation with our bankruptcy law firm today

To discuss your case with our founding attorney, William H. Lively Jr., please call our Tyler law office at [nap_phone id="LOCAL-CT-NUMBER-2"] or send him an email online to schedule your free initial consultation. He serves clients in all of East Texas.  ]]> 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 2026-10-23T08:06:44Z 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.

Contact us today for a free initial consultation

To discuss your case and other financial concerns in private, please call [nap_names id="FIRM-NAME-1"], today at [nap_phone id="LOCAL-CT-NUMBER-2"] or send us a message to arrange your free consultation. Our firm handles Chapter 7 and Chapter 13 bankruptcy cases and serves clients in all of East Texas.]]> 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.]]>