Filing for bankruptcy can be an extremely challenging time in a person’s life. Our bankruptcy attorneys at Hawaii Chapter Bankruptcy realize this and approach each case with both expertise and compassion. With more than 80 years of combined experience serving clients in Waipahu, you can trust that our attorneys will be by your side when you need it most. From initial filing to helping you rebuild your credit score when all is said and done, you can count on us. Contact us today for a consultation and discover if chapter 7 bankruptcy is for you.
If you’re in a financial hole that you can’t seem to climb out of, Chapter 7 bankruptcy might be for you. Chapter 7 bankruptcy is also known as “liquidation” bankruptcy as the process liquidates assets and takes care of unsecured loans. The first step is to file for Chapter 7 bankruptcy after which you will be assigned a trustee who will be over your case. Any of your non-exempt assets will be liquidated to pay off creditors after which your unsecured debts will be discharged, allowing you a fresh start. Our attorneys can help you decide if filing for bankruptcy is your best course of action. The entire process takes about 3-6 months and can be a huge relief for those who are under debilitating debt.
The Automatic Stay In Chapter 7 Bankruptcy
One of the benefits of chapter 7 bankruptcy is the automatic stay which stops any collections activity or any activity done by creditors. Lawsuits, wage garnishments, and harassing phone calls will come to a temporary end. This gives the debtor some relief and a chance to get their feet back under them again. The automatic stay is in effect throughout the duration of the bankruptcy process. Keep in mind that there are some actions, like evictions or some family law matters that are not affected by the automatic stay.
Requirements For Filing Chapter 7 Bankruptcy
Our attorneys at Hawaii Chapter Bankruptcy will help you go through the requirements of Chapter 7 bankruptcy to ensure you meet them before filing. Requirements include passing the means test which compares your income to that of the median income in Hawaii. If you meet that requirement, you will then go through a credit counseling course which teaches how to handle money. Once you do these two things, you will be asked to provide a list of all of your assets, liabilities, income, expenses, and tax returns and you will be on your way toward some financial relief.
Begin Your Financial Fresh Start & Contact Our Bankruptcy Attorneys Today!
Having an attorney by your side throughout your bankruptcy case is invaluable since bankruptcy can often be very complex. Our attorneys will make sure your paperwork is filled out correctly and filed on time and they can help you understand your assets and which ones are exempt. During meetings with creditors, our attorneys will advocate for you and negotiate the amounts you will have to pay for each of your debts. With the experience and knowledge of our attorneys, you can be confident that your bankruptcy journey will be successful.
Caring for our clients with a personal touch and in-depth knowledge is at the heart of our attorneys. This is why people in Waipahu have consistently chosen our bankruptcy firm as their go-to in financial crises.
Start for Just $100: Flexible Payment Plans Available
We know that getting an attorney can be expensive and we want to make our services available to as many people in need as possible. Because of this we have a variety of flexible payment plans that start for $100!
Tailored Strategies For Your Chapter 7 Bankruptcy
As our attorneys walk you through the chapter 7 bankruptcy process, we will make sure to listen to your specific case so that we thoroughly understand and can tailor our strategies to you. Contact us today for a consultation!
Helping You Achieve A 720 Credit Score Post-Bankruptcy
During the bankruptcy process, credit scores take a big hit. Not only do we want to help you through your bankruptcy, but we want to see you succeed on the other side of it by developing a plan to get back to a 720 credit score!
Expert Attorneys & Paralegals Committed to Your Case
Each member of our staff has the background and training necessary to successfully walk you through the bankruptcy process. We are committed to your success and have the tools to get you there each step of the way.
Compassionate & Experienced Team Providing Family-Like Support
Not only is our team knowledgeable about Hawaii bankruptcy law, but we are dedicated to providing family-like support during this difficult time. We understand the challenges you are facing and will walk with you with compassion.
Our Clients’ Testimonials
5-Star Rated Waipahu Chapter 7 Bankruptcy Law Firm
Blake Goodman and his staff were extremely helpful in helping us on our way to be debt free! Bankruptcy was intimidating at first but they made it easy and we didnt feel judged either! They answered all the questions we had! I highly recommend Blake Goodman as your bankruptcy attorney!
Shaun Manor
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Which Debts Can Be Discharged in Chapter 7 Bankruptcy?
The debts that can be discharged in chapter 7 bankruptcy are quite a few! For the most part, all of your unsecured debts such as credit card debt, medical bills, personal loans, and utility bills can be discharged. You can also have business debts, lease agreements, and some older tax debts discharged. Our attorneys can help negotiate on your behalf to get these debts discharged or at the very least, reduced. Some debts, however will not be discharged such as child support, alimony, tax debt, and some others.
Which Assets Can Be Retained in Chapter 7 Bankruptcy?
Common Exemptions Include:
If you’re worried that you will lose everything during the bankruptcy process, there is good news. There are several exemptions that allow you to keep certain assets. It is helpful to have a bankruptcy attorney work with you to determine which exemptions apply to your specific case as they vary from situation to situation. Most people, however, will be able to qualify for a homestead exemption which allows you to keep some of the equity in your home. Some will also qualify for a motor vehicle exemption which protects up to a certain amount of equity that you have in your vehicle. These exemptions and more vary depending on your situation so people find it helpful to work with a bankruptcy attorney to ensure you get the exemptions you need.
Essential Household Goods & Furnishings
One of the important exemptions you may qualify for is the essential household goods and furnishings exemption which includes items that you need for everyday life. These items can include beds, refrigerators, clothing, cookware, tvs, and small kitchen appliances.
A Portion Of Earned but Unpaid Wages
Under Hawaii law, debtors who file for bankruptcy can have an 80% exemption on their earned but unpaid wages for work done within 31 days before filing for bankruptcy. The goal is to give debtors an income to live off of during the bankruptcy process.
A Significant Share, If Not All, Of Your Pension
If you are worried about losing your pension once you file for chapter 7 bankruptcy, you can rest easy. In Hawaii, most retirement accounts are totally exempt so that your future retirement is not impacted by your current bankruptcy.
Public Benefits, Including Welfare & Social Security
Public benefits, which include welfare and Social Security, are exempt completely from chapter 7 bankruptcy. While bankruptcy may liquidate all of your assets, the state of Hawaii puts an emphasis on providing basic needs during the process.
Important Questions About Chapter 7 Bankruptcy Answered
Will I Be Able To Keep My Home In Chapter 7 Bankruptcy?
This depends on how much equity you already have in your home and the homestead exemption limits which are up to $30,000 for a single homeowner and up to $60,000 for joint homeowners. If the equity is at or below these limits, you will likely be able to keep your home if you continue making payments.
Can I Retain My Vehicle In Chapter 7 Bankruptcy?
It is possible to keep your vehicle, but like the homestead exemption, the equity in your car must fall within certain limits. Hawaii allows you to have up to $1,200 for a single car and if you continue with payments and the equity is below the limit, you can keep it! However, if you have more than $1,200 in equity, you will likely have to liquidate it.
Is Credit Counseling Required For Chapter 7 Bankruptcy?
Yes, you will have to go through a credit counseling course from an approved agency before you go through the bankruptcy process. This must be done within 180 days before filing for bankruptcy and helps you look into what your financial options are so you can explore all your alternatives before moving forward.
What Happens When You Start Chapter 7 Bankruptcy Proceedings
StepsTto Take After Filing Your Chapter 7 Petition
Taking the first steps toward chapter 7 bankruptcy can be daunting which is why our attorneys at Hawaii Chapter Bankruptcy are ready to assist you throughout the process from start to finish and even after the process is over. Bankruptcy includes many steps, but there are three main steps that you must take after filing your chapter 7 petition.
The steps you take after filing your petition are crucial to getting you started and ensuring the bankruptcy process goes smoothly. Start by attending the Meeting of Creditors or the 341 meeting, from there you will be required to complete debtor education and then provide all the necessary documentation with the help of your bankruptcy lawyer!
STEP 1
Attending the Meeting of Creditors with your attorney will start you on your journey as you answer questions about your financial situation and why you filed for bankruptcy.
STEP 2
Once you meet with the creditors, you will be required to take a debtor education course from an approved agency where you will be educated on your options.
STEP 3
Lastly, you and your attorney will compile and submit all the necessary documentation such as recent tax returns, proof of income, lists of assets, and more.
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Imagine a future where you are free of your debt obligations and headed toward more financial security. With our trusted bankruptcy attorneys, you can do just that!
Frequently Asked Questions About Chapter 7 Bankruptcy
What Happens To My Tax Debts In Chapter 7 Bankruptcy?
When it comes to taxes, there are some tax debts that can be discharged and others that cannot. The difference is with age and type of tax debt. Tax debts that can be discharged must be from returns that were due at least three years before filing for bankruptcy and they must have been filed at least two years before filing for bankruptcy. It is also important that the tax debt is not connected to any tax evasion or fraud. More recent tax debts and anything that is flagged as fraud or evasion will likely not be dischargeable. Also keep in mind that if you are owed any money from tax refunds, they will be used to pay off creditors.
How Will Chapter 7 Bankruptcy Affect My Future Ability To Get Credit?
Credit scores are typically significantly impacted by bankruptcy. You can expect a bankruptcy to stay on your credit report for up to 10 years and your credit score will likely drop, making it hard to get new loans in that timeframe. If you are able to get a new loan, you will be facing high interest rates or more strict terms. At our bankruptcy law firm, we stay with our clients after the bankruptcy process is over and help them grow their credit score, getting them back to a 720 or more. With some time, it is possible to get back to a financially healthy place where you are able to get loans with no trouble.
Can I Discharge Lawsuit Judgments In Chapter 7 Bankruptcy?
Whether or not you can discharge lawsuit judgments depends on if the debt is unsecured or not. If the judgment has to do with credit card bills, medical expense debt, or any other form of unsecured debt, bankruptcy can play a role in having it discharged. If the judgments have to do with debts that are not secured or things like fraud or personal injury claims, they will most likely not be discharged. For more information on whether or not your judgments will be discharged, contact our bankruptcy attorneys and we will help you discover what your options are.
What Documents Do I Need To File For Chapter 7 Bankruptcy?
There are several important documents that you will need to file for bankruptcy and our lawyers can ensure you provide the right ones. You will need a list of all of your assets, liabilities, income, and expenses, in order to shed light on your situation. Proof of income will also be necessary which could be in the form of a tax return, pay stub, or bank statements. You will need to provide all the information you have on your current debts and a certificate stating that you went through the required credit counseling. In addition to all of this, you should have a copy of your driver’s license or other ID ready.
How Does Chapter 7 Bankruptcy Affect My Co-Signers?
When you file for bankruptcy, it is a good idea to consider how it will affect your co-signers. Unfortunately, chapter 7 bankruptcy does not protect your co-signers and they will remain liable for the debt amount even if you are discharged. Creditors can legally go after the co-signers for the owed money even if your bankruptcy process is complete. If you have debt with a co-signer and you are considering filing for bankruptcy, you should look into restructuring the debt so they are not impacted. Consult with our bankruptcy attorneys to determine what your options are.
Can I Run A Business While In Chapter 7 Bankruptcy?
Yes! Running a business during a chapter 7 bankruptcy is entirely possible, but there are several things you should keep in mind before doing so. You must operate the business while continuing to adhere to bankruptcy law. If you are making an income on your business, that income will become a part of your estate and will be used to pay off creditors. While bankruptcy won’t impact the fact that you can run a business, you will be required to disclose any information about the business and its financials to your bankruptcy trustee.
What Happens If I Inherit Property Or Money While In Chapter 7 Bankruptcy?
Inheriting money while in chapter 7 bankruptcy may seem like a much needed financial gift, but you will be required to report the inheritance to your bankruptcy trustee right away. If you receive the money or property within 180 days of filing for bankruptcy, it will be put towards your assets and will be used to pay off creditors. If you choose not to report the inheritance, you will face legal consequences. Contact our lawyers for more information about how you can and should disclose inheritance to the bankruptcy trustee to ensure your rights are protected.
Will My Attorney Help With Post-Bankruptcy Issues, Such As Rebuilding Credit?
Absolutely! We value our clients and want to ensure that they not only make it successfully through the bankruptcy process, but also succeed in their finances afterward. We provide programs designed to help you get back to a 720 credit score. We will help you develop a detailed plan to manage your finances so that you can improve your credit score as quickly as possible. We want to be a valuable asset in your bankruptcy process from start to finish and beyond. Contact us today for a consultation and get started on your journey towards financial freedom!
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