FAQ

Chapter 7 bankruptcy, or “liquidation,” is suitable for individuals in Hawaii with low income and unsecured debts, quickly discharging those debts but potentially requiring the sale of non-exempt assets. On the other hand, Chapter 13 bankruptcy, known as “reorganization,” is designed for those with stable incomes who can commit to a 3 to 5-year repayment plan, making it ideal for those behind on secured debts like mortgages or car loans, allowing them to retain valuable assets like homes. The choice depends on individual financial situations, with Chapter 7 offering a faster fresh start and Chapter 13 providing a structured path to repay debts and protect assets, necessitating guidance from a bankruptcy attorney to determine the appropriate path in Hawaii.

To find a trustworthy bankruptcy lawyer in Hawaii, start by seeking recommendations from friends or the Hawaii State Bar Association, and consult online directories and reviews. Verify their credentials and check for disciplinary actions. Trust your instincts, and choose a lawyer who not only possesses the necessary expertise but also makes you feel comfortable and confident in handling your bankruptcy case. If you need additional assistance, consider contacting Hawaii Chapter Bankruptcy at (808) 556-7833 for further guidance.

When seeking a bankruptcy lawyer in Hawaii, prioritize qualities such as experience in bankruptcy law, specialization in the field, a positive reputation, effective communication skills, transparency regarding fees and outcomes, empathy for your situation, local knowledge, availability, a successful track record, a client-centered approach, and professionalism. These qualities ensure you receive competent, compassionate, and tailored legal assistance to navigate the complexities of bankruptcy while protecting your best interests and financial well-being.

Chapter 7 bankruptcy in Hawaii typically eliminates unsecured debts like credit cards and medical bills, may discharge certain tax debts, and can address past-due utility bills and rent while not discharging child support, alimony, recent income taxes, or court fines. On the other hand, Chapter 13 restructures secured debts such as mortgages and car loans, assists in becoming current on child support and alimony payments, and provides a structured plan for paying off nondischargeable debts like recent income taxes and court fines over 3 to 5 years, with potential partial relief for other debts like medical bills and unsecured loans. The specific debt relief varies based on the chosen bankruptcy chapter and individual circumstances. Consulting with a bankruptcy attorney in Hawaii is crucial to determining the most suitable approach for addressing specific debts.

Qualifying for Chapter 7 bankruptcy in Hawaii involves passing a means test, demonstrating financial need, and not having received a Chapter 7 discharge in the previous eight years. For Chapter 13, you need a regular income, your debts must meet specific limits, you must be willing to commit to a 3 to 5-year repayment plan, and you must have sufficient disposable income after deducting essential expenses. If you’ve received a Chapter 13 discharge within two years, you may be ineligible for another. Consultation with a bankruptcy attorney is essential to confirm eligibility, as bankruptcy laws can change, and specific financial circumstances vary.

After filing a bankruptcy application in Hawaii, an automatic stay protects you from creditor actions. You’ll attend a Meeting of Creditors (341 Meeting), and in Chapter 13, your repayment plan may require modification before confirmation. In Chapter 7, non-exempt assets may be evaluated for potential liquidation. Upon meeting all requirements, you’ll receive a debt discharge order. Completing a post-bankruptcy education course is necessary, and rebuilding credit and responsible financial management are essential. Stay informed, work closely with your attorney, and, upon completion, your bankruptcy case will be closed, offering a fresh financial start with certain debts discharged.