Filing Hawaii bankruptcy is very similar to filing bankruptcy anywhere else in the United States, as the bankruptcy laws are made on a federal level. You will simply have to follow the rules for filing bankruptcy and file in the bankruptcy court in Hawaii.
The Process of Filing a Chapter 13 Hawaii Bankruptcy
When you are faced with the prospect of having to declare bankruptcy, it can be a scary situation. You may wonder which of your assets and property will be subject to seizure and sale by the bankruptcy court, and you may wonder where you will live or what you will do if your bankruptcy is not approved and you lose everything.
The good news is that Chapter 13 bankruptcy, also known as a “wage earner’s bankruptcy,” allows you to create a repayment plan which will allow you to pay back your creditors while keeping your assets and remaining in your house and retaining possession of your car:
- When you file for Chapter 13 bankruptcy, you will be working with a bankruptcy lawyer, who is your advocate through the bankruptcy process, and a bankruptcy trustee, who is appointed by the courts and is responsible for making sure that your creditors receive as much of the money which they are owed as is possible under the circumstances. Together, you will create a plan that allows you to use your existing income to repay your creditors, by reducing your debts and payments and negotiating lower interest rates over a period of three to five years.
- After the three to five year period is over, some of your unpaid debts will be forgiven, and you will have paid back what you owe and have a fresh start. The bankruptcy trustee will examine your assets and income and determine what a fair payment schedule might be, then negotiate with your creditors to receive this payment. Your lawyer will be able to work with the trustee to negotiate payments which seem excessive, or to negotiate with your creditors to help them realize that accepting less money is better than the alternative of Chapter 7 bankruptcy where your assets are sold and the money is distributed across the board.
- Your plan will be approved by your creditors and the bankruptcy trustee, and throughout the remainder of the three to five year repayment period, the trustee will check back periodically to make sure that both you and your creditors are adhering to the legal agreement and repayment schedule set forth in the plan. By doing so, you will be well on track to repaying your debts and creating a new debt free future after bankruptcy.
Getting Help
To file a Hawaii bankruptcy, find an attorney within your local area who specializes in filing Chapter 13 bankruptcy. Your attorney can assist you throughout the process of filing your bankruptcy and creating your plan to pay back your creditors and move on with your life.
