WHAT IS CHAPTER 7?

HONOLULU CHAPTER 7 BANKRUPTCY LAWYER SERVING CLIENTS THROUGHOUT THE HAWAIIAN ISLANDS

Chapter 7 bankruptcy refers to Chapter 7 of the U.S. Bankruptcy Code. This is the type of bankruptcy most people think of when they discuss filing bankruptcy. Under Chapter 7, you will petition the federal bankruptcy court to eliminate the debts that qualify for elimination.

Qualifying debts include

  • Credit card debt
  • Medical bills
  • Tax debt
  • Secured loans such as a car or boat loan

HOW GOOD DOES DISCHARGED DEBT SOUND? KEEP WHAT YOU OWN, TOO.

Through the Chapter 7 process, you will also be able to “dump the debt” while keeping your car loan and mortgage as long as you continue to pay them as due.

Chapter 7 is not a perfect solution. In the first place, not everyone qualifies — but most do. Your income and secured debts will be subject to a “means test” to determine whether the Bankruptcy Code will require you to pay back a portion of the debt in a Chapter 13. Most people pass the means test and 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 payment plan over three to five years.

THE PROCESS

The first important thing to know is that the day you file through my office, you have retained legal counsel. That means that all creditors will have a legal responsibility to make all further contact through my office and to stop contacting you.?

During the initial consultation, he will discuss your circumstances. I will ask you about your assets, debts, income and expenses, and explain the process step-by-step. Most people are surprised to learn that I handle virtually everything — we prepare all documents with you. After filing you will be required to appear at a meeting of your creditors where the court-appointed trustee will ask about the accuracy of the documents we have prepared together and I have filed. I will be by your side throughout the meeting and advise you of your rights and help you settle your nerves. Again, the large majority of filers make it through the “341 Hearing” with no complications.

Following the meeting, the court will handle all further proceedings through my office. In approximately 90 to 120 days, you will receive a letter notifying you that your debts have been discharged and your case closed.

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.

Watch my videos and read my articles to learn more about ways bankruptcy can help.

Call my 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.