What Is Chapter 7?
HONOLULU CHAPTER 7 BANKRUPTCY LAWYER SERVING CLIENTS THROUGHOUT THE HAWAIIAN ISLANDS
Chapter 7 bankruptcy refers to completely eliminating debt with no further payments. This is the type of bankruptcy most people think of when they discuss filing bankruptcy.
Qualifying debts include
- Credit card debt
- Medical bills
- Tax debt
- Secured loans such as a car or boat loan
HOW GOOD DOES BOTH KEEPING EVERYTHING YOU OWN AND BEING DEBT FREE SOUND?
In a Chapter 7 process you both “dump the debt” while keeping your car loan and mortgage as long as you continue to pay them as due. Everything else, the other debts are gone– discharged.
Chapter 7 is a perfect solution for all who qualify for it. However, not everyone qualifies — but most do. Your income and secured debts will be subject to a “means test” to determine whether the Bankruptcy Code requires that you pay back a portion of the debt in a Chapter 13. Most people pass the means test with flying colors and they can eliminate all of their unwanted debt. For those who do not, Chapter 13 is available to greatly reduce your debt burden through a restructured repayment plan over three to five years.
THE PROCESS
The first important thing to know is that the day you file you are protected by federal law from all collections. That means NOBODY can collect from you once you file.
During the initial and free consultation, we will discuss your unique circumstances. We will ask you about your assets, debts, income and expenses, and explain your rights and the process step-by-step. Most people are surprised to learn that we can and do handle virtually everything — we prepare all documents with you. Once qualified and filed you, with us, will attend via Zoom an online meeting of your creditors where the court-appointed trustee will ask about the accuracy of the documents we have prepared together and we have filed. We will be by your side throughout the meeting with the trustee. We will be there with you every step of the way.
Following the meeting, the court will handle all further proceedings through my office. Approximately 4.5 months after filing you will receive a formal discharge notifying you and your former creditors that you are debt-free.
HONOLULU BANKRUPTCY ATTORNEY — CALL TO GET THE HELP THE U.S. BANKRUPTCY CODE IS OFFERING YOU
If you are like most people, you have probably been struggling with paying one bill or another for more than a year before investigating bankruptcy. The important thing is that you are ready to make a decision.
Call our office at 808-585-1000 to get the break you need. For the large majority of people who are deep in debt, Chapter 7 bankruptcy means getting a fresh start and a new outlook on life.
