What is Chapter 7 Bankruptcy?

Named after the chapter detailing the law in the Federal Bankruptcy Code, Chapter 7 is also referred to as “straight” or “liquidation” bankruptcy.

Filing for and completion of a Chapter 7 bankruptcy takes on average 4 to 6 months. As part of the process you are required to list all of your property, income, living expenses, debts, former properties owned within the last 4 years, and payments made on debts to creditors within the last 90 days unless those creditors are friends or family- then it is one year.

Most people can exempt or keep all of their assets and still dump the debt.

Once you have filed for Chapter 7 bankruptcy, an “Order of Relief” is put into effect which stays or stops most, if not all, creditors from try to collect debts from you. While in the process of Chapter 7 bankruptcy, the court¬¨‚Ć and the court appointed trustee are in control of your assets and debts so you should not sell or transfer them without prior approval.

You will be ineligible for Chapter 7 bankruptcy if you have filed for chapter 7 bankruptcy within the last 8 years or if you are deemed to be financially capable of completing a Chapter 13 Bankruptcy repayment plan. Once the case is filed, a ” Trustee‚Äö√Ñ√π will be appointed to versee your case and to liquidate any non exempt assets for the benefit of your creditors.

When your Chapter 7 bankruptcy case has been discharged most of your debts are dumped- forever. Some debts which are not discharged are some tax debts, student Loans, child support and alimony. Another type of non dischargeable debts are those incurred by fraud.

Call us today at 808-585-1000 for a free no obligation consultation. Dump the debt and get a fresh start.

We file bankruptcies on all the Hawaiian Islands, Oahu, Big Island, Maui and Kauai. Find out what we can do for you today!

A bankruptcy estate is another name for your property or assets and debts as of the moment you file a bankruptcy.  The estate can also include a few various items which you disposed of  prior to the bankruptcy.  You are required to list all assets and debts in the bankruptcy even those you wish to keep after the bankruptcy.   Depending on the type of asset and any debts secured by that asset  it may or may not be considered part of your bankruptcy estate.  If it is part of your estate and you have equity in the item, you may be able to exempt that equity.

If you are in a Chapter 7 the asset is abandoned back to you at the conclusion of the case unless the trustee sees equity in it that is non exempt and he liquidates it to pay your creditors on a pro rata basis.

In a chapter 13 you can keep even non exempt assets provided your creditors receive as much as they would receive in chapter 7.

The rules are complicated and not necessarily intuitive.  Your best best it s to talk to a bankruptcy attorney and discuss both your assets and your debts to find out what options you have when dumping your debt.

Call us today at 808-585-1000 for a free no obligation consultation.  Dump the debt and get a fresh start.

We file bankruptcies on all the Hawaiian Islands, Oahu, Big Island, Maui and Kauai.  Find out what we can do for you today!

It depends whether you are filing chapter 7 or chapter 13.

If you receive your tax refund after filing chapter 13 bankruptcy, it has to be payed to the bankruptcy trustee unless it can be exempted and minus  any earned income or child tax credit It is also subject to setoff, recoupment or otherwise provided for by your plan.

If you are filing chapter 7, your tax refund must be listed as an asset to the extent that it is earned and claimed as exempt if permitted under your state or federal exemptions.  Any non exempt refunds through petition date will have to go to the chapter 7 trustee  (minus  any earned income or child tax credit ,  setoff or recoupment).

This is a general breakdown and the rules are complicated.  The best thing you can do is to get advice from a bankruptcy attorney as each case is unique.

Call us today at 808-585-1000 for a free no obligation consultation.  Dump the debt and get a fresh start.

We file bankruptcies on all the Hawaiian Islands, Oahu, Big Island, Maui and Kauai.  Find out what we can do for you today!

If your house is worth less than you owe on your first mortgage and you otherwise qualify for a chapter 13 bankruptcy, the second mortgage, if you have one, can be “stripped.”

DUMPED!

The bankruptcy court recognizes that if the house were to be foreclosed on, it would sell for less than is owed on the first mortgage and the second mortgage would get nothing.¬¨‚Ć So, the second mortgage is wholly “undersecured” and can be “stripped.”¬¨‚Ć Once stripped and once the plan is completed succesfully the lien on your home and the personal obligation on the underlying promise to pay money are dumped.

Call us today at 808-585-1000 for a free no obligation consultation. Dump the debt and get a fresh start.

We file bankruptcies on all the Hawaiian Islands, Oahu, Big Island, Maui and Kauai. Find out what we can do for you today!

Once you file for chapter 7, your bankruptcy estate is created and the Court sets the date of  the meeting of creditors or 341a hearing. The hearing is normally 30-45 days after the date of filing.  All of your creditors are notified of the meeting and that you filed for bankruptcy.   They or their counsel can ask you questions about the nature and validity of the debts at the meeting of creditors.  The trustee will confirm that all of the information provided is accurate and seek assets to liquidate which assets are not exempt.  If the trustee seeks more information, the trustee may hold the meeting of creditors open and continue the hearing until another date in the future in order to get and review the additional information requested.  Once the meeting of creditors is closed, in most cases, that is the last hearing or meeting which you will need to attend.

Call us today at 808-585-1000 for a free no obligation consultation.  Dump the debt and get a fresh start.

We file bankruptcies on all the Hawaiian Islands, Oahu, Big Island, Maui and Kauai.  Find out what we can do for you today!

If you are thinking of filing bankruptcy, there are a few do’s and don’ts:

• Don’t borrow money from a relative to cover some of the debt unless they are going to pay it all off

• Don’t borrow money from a retirement account

• Don’t borrow from one credit card to pay another

• Do read your bank statements to check that all dedions are accurate

• Do pay child support and student loans

• Do file taxes even if you can not pay them

• Do keep up with¬¨‚Ć your vehicle payments

• Do keep copies of taxes and pay stubs

DO CONSULT WITH A BANKRUPTCY ATTORNEY!   Call Now or contact Ed today to schedule a free no obligation consultation. 808-585-1000