Best Bankruptcy & Debt Lawyers in Hawaii

About Bankruptcy & Debt Law in Hawaii, United States

Bankruptcy and debt law in Hawaii helps individuals and businesses handle situations where debts have become overwhelming or unmanageable. Bankruptcy is a legal process that can discharge certain debts, offer protection from creditors, and allow a fresh financial start. There are different types of bankruptcy, including Chapter 7 and Chapter 13, each with unique rules and benefits. Hawaii, as part of the United States, follows federal bankruptcy laws but also maintains specific state exceptions and practices. Understanding these laws is important if you are struggling with debt and considering your financial options.

Why You May Need a Lawyer

Navigating bankruptcy and debt issues can be complex and stressful. Many people in Hawaii seek legal help for issues such as:

• Being unable to pay credit card, medical, or personal loan debts
• Facing foreclosure on a home or property
• Dealing with constant creditor calls, lawsuits, or wage garnishment
• Wanting to stop repossession of vehicles or other assets
• Attempting to reorganize or consolidate debt
• Understanding whether bankruptcy is the right choice for their situation

A lawyer can review your circumstances, explain your options under federal and state law, represent you in court, and help prevent mistakes that could affect your financial future.

Local Laws Overview

Hawaii follows the United States Bankruptcy Code, but there are unique state-specific aspects to consider:

• Exemptions: Hawaii has its own list of property exempt from liquidation in bankruptcy, such as a homestead exemption for your primary residence up to a certain value.
• Median Income Test: To qualify for Chapter 7 bankruptcy, residents must pass a means test based on Hawaii's median income.
• Tenancy by the Entirety: Property owned jointly by married couples can receive protection from certain creditors in Hawaii.
• Foreclosure Laws: Hawaii law sets procedures and timelines for mortgage foreclosures, which can impact how bankruptcy interacts with your home.
• State and Local Taxes: Some local taxes and obligations may not be discharged in bankruptcy and should be reviewed with a Hawaii-based attorney.

Working with a lawyer familiar with both federal and Hawaii-specific bankruptcy law will help ensure full protection of your rights and assets.

Frequently Asked Questions

What is the difference between Chapter 7 and Chapter 13 bankruptcy?

Chapter 7 bankruptcy involves liquidating non-exempt assets to pay creditors and usually results in the discharge of most debts. Chapter 13 bankruptcy allows you to keep your property and create a court-approved repayment plan, typically lasting three to five years.

Will bankruptcy stop creditor harassment and collection activities?

Yes, filing for bankruptcy triggers an automatic stay, which stops most collection efforts, including creditor calls, lawsuits, wage garnishing, and foreclosure actions during the bankruptcy process.

Are all debts eliminated in bankruptcy?

No, certain debts such as child support, most student loans, some taxes, and court-ordered restitution are typically not discharged through bankruptcy.

Can I keep my car or home if I file for bankruptcy in Hawaii?

You may be able to keep your car or home, depending on the value, exemption rules, and whether you can continue payments. Hawaii has specific exemptions that may help protect these assets.

How does bankruptcy affect my credit?

Bankruptcy will be reported on your credit report for seven to ten years depending on the chapter filed, and it can negatively impact your credit score. However, many people are able to rebuild their credit over time after bankruptcy.

Do both spouses have to file for bankruptcy?

No, but in many cases, married couples file jointly. Whether both spouses should file depends on who is legally responsible for the debts and the nature of jointly owned assets under Hawaii law.

How often can I file for bankruptcy?

There are mandatory waiting periods between bankruptcy filings. For example, you must wait eight years between Chapter 7 discharges. The timing can depend on the type of bankruptcy previously filed.

What property is protected by Hawaii bankruptcy exemptions?

Hawaii law protects certain property from creditors, including a portion of equity in your primary residence, personal belongings, retirement accounts, and some vehicles. The exact amounts and rules should be reviewed with a local attorney.

Can bankruptcy stop a foreclosure in Hawaii?

Filing for bankruptcy will generally stop a foreclosure temporarily due to the automatic stay. Chapter 13 bankruptcy can sometimes help you catch up on missed mortgage payments as part of a repayment plan.

What alternatives to bankruptcy are available if I am struggling with debt?

Alternatives may include debt consolidation, negotiating with creditors, debt settlement, and credit counseling services. An attorney or financial advisor can help you evaluate these options.

Additional Resources

If you need information or support with bankruptcy and debt issues in Hawaii, consider these resources:

• United States Bankruptcy Court - District of Hawaii: Handles all bankruptcy filings in the state
• Legal Aid Society of Hawaii: Offers free or low-cost legal services to qualifying residents
• Hawaii State Bar Association Lawyer Referral and Information Service: Connects individuals with local attorneys experienced in bankruptcy law
• Hawaii Department of Commerce and Consumer Affairs, Office of Consumer Protection: Provides consumer education and handles complaints related to debt collection
• Federal Trade Commission: Offers educational materials about dealing with debt and understanding your rights

Next Steps

If you are considering bankruptcy or struggling with debt in Hawaii, here are some recommended steps:

• Gather all financial records, including debts, assets, income, and expenses
• Consult with a bankruptcy and debt attorney licensed in Hawaii to discuss your options
• Explore alternative solutions such as debt consolidation or credit counseling if appropriate
• If you decide to proceed with bankruptcy, follow your attorney’s guidance carefully to complete the required paperwork and court processes
• Educate yourself about your rights and responsibilities throughout the process

Taking early action and getting professional advice can help you protect your assets, avoid unnecessary complications, and achieve the best possible outcome for your financial future.