Chapter 7 Bankruptcy on Maui — Immediate and Quick Debt Relief
A Chapter 7 bankruptcy is also known as a “liquidation bankruptcy “or “straight bankruptcy.” Among all types of bankruptcies, it is one of the most common types for people with immense debts and little assets.
The primary purpose of Chapter 7 bankruptcy is to provide you with a fresh start by discharging or wiping out your entire unsecured debt load, which includes:
- Medical bills
- Credit cards
- Payday loans
- Lawsuit judgments
- Personal loans
- Deficiencies on repossessions
- And many more!
In a Chapter 7 bankruptcy, you are allowed to keep secured debt, which includes your car and home, as long as you maintain the payments on those debts. The entire Chapter 7 bankruptcy procedure takes about 3 to 4 months, and generally requires 1 trip to the court. When you file for this type of bankruptcy with us, it will immediately stop creditors from collecting. Your creditors can’t legally touch your wages, car, home, and other property.
Eligibility for Chapter 7 Bankruptcy
To be considered eligible for Chapter 7 bankruptcy, you must meet the following qualifications:
- No previous bankruptcy in the last 6 or 8 years
- Passing the means test
If you are facing a huge amount of debt, then Chapter 7 bankruptcy is the right solution for you. However, there are some drawbacks. For instance, the filing of bankruptcy stays on your credit for the next 10 years. Not to worry, we help our clients rebuild their credit after their bankruptcy with our exclusive “2 Years to 720 Credit Score” program, enabling you to return to a very high credit score in just a few years after filing. That is all free and part of our superior bankruptcy services.
Chapter 13 Bankruptcy on Maui — Debt Reorganization
If you are having trouble paying your bills, and on top of that your house payment, car payment, or tax debts, then Chapter 13 bankruptcy services are the perfect option for you. This type of bankruptcy provides a way to discharge your debts by simply paying your entire debt, or some debt, over a 3-to-5-year period. The primary reason why people consider this chapter is to protect and reorganize the payment of secured assets, such as car loans or home arrearages. In simple terms, you would enter a court-sanctioned plan to repay creditors over a few years, rather than dealing with many bills and creditors separately. You will merge your debt into one monthly, affordable payment. The initial requirement to file a Chapter 13 bankruptcy is that you have some form of regular income.
Eligibility for Chapter 13 Bankruptcy
The qualifications for Chapter 13 bankruptcy include:
- Your debt should not exceed $1,257,850 in secured debts
- Your debt should not exceed $419,275 in unsecured debts
- You must provide up-to-date tax returns and payments
- You should have a steady income
Similar to Chapter 7 bankruptcy, filing for Chapter 13 will stop creditors from doing anything against you, and it will stop foreclosure and car repossession.
Debt Settlement or Debt Negotiation on Maui
As a sister practice to bankruptcy, we offer a service which allows our clients to explore all the options available to achieve debt freedom. We realized almost a decade ago that sometimes bankruptcy is not a good fit for some clients. If that is the case, then we take over and settle or negotiate your debts for a reasonable payment which is geared towards reducing the principal and interest for oftentimes very favorable discounts and savings. We’ll take you under our wing and force creditors to contact us instead of harassing you until we can establish a deal that you will be able to pay. Many of our clients are pleased with this outcome and all the time we’ve kept them out of bankruptcy. We have a dedicated paralegal that specializes in working with your creditors to achieve an outcome that generally reduces your payment to a manageable percentage on the dollar.
Tax Resolutions on Maui
Although bankruptcy is a very powerful remedy to resolve old tax debts, sometimes there are better ways to eliminate the tax burdens with direct intervention with the state and federal governments. Offers in Compromise, installment agreements, and Injured Spouse Relief are programs we offer for the right set of circumstances, and as said, can produce outcomes more favorable to bankruptcy and could be the better fit.
Tax Debt Relief After Bankruptcy
Over time, you can find ways to discharge debts for income and/or general excise taxes under Chapter 7 and Chapter 13 bankruptcy only if you able to meet certain criteria in regard to previous tax history, and more. First of all, the tax is actual income tax or general exercise tax. Tax other than income or general excise tax, such as fraud penalties and payroll taxes, can’t be wiped out in bankruptcy. So, if you want to get rid of income or general excise tax, then there are possibilities for you to become debt-free.
You also must qualify by not committing any previous willful or fraud evasion. If you filed a deceitful tax return or willfully tried to avoid paying taxes, like using a wrong Social Security number on your tax return, then bankruptcy cannot help you at all. Your debt must also be at least 3 years old before you think about filing for bankruptcy. In addition, you’d need to file a tax return for that debt you want to wipe out at least 2 years before filing the case. Finally, you must qualify for 240-day rule, which means that the income tax debt needs to be assessed by the taxing entity at least 240 days before filing for the bankruptcy.
For you to learn more about the requirements for getting rid of income tax and general excise tax debt, our seasoned bankruptcy lawyers have over 30 years of experience in this area. Our highly experienced attorneys will explain the whole process to you and provide the best solution for your case. You can also visit our page dedicated to tax debt relief for more info.
Student Loan Discharge
You generally cannot discharge student loans in bankruptcy. However, there is an exception. A lot of debtors are unable to wipe out or discharge student loan debt under Chapter 7 and Chapter 13 bankruptcy. But, if a debtor is able to prove in court that repaying their student loan debts would cause undue hardship, then the debtor can get rid of their student loans in the case of bankruptcy. If you meet the requirements, then you can discharge your student loans, and you should look into our bankruptcy services.
Lately, student loans have exceeded credit cards as the biggest amount of unsecured debt owed in the U.S. Unlike credit cards, medical bills, and other unsecured debts, student loans are usually not dischargeable in the bankruptcy. It does not mean at all that you have to face harassing and non-stop phone calls, and messages from collection agencies and lenders. If you don’t know how to become debt-free when it comes to student loans, then all you need to do is to contact us. We have a team of highly professional and experienced bankruptcy lawyers who can help you to get rid of your student loan debt.