Hawaii Chapter 13 Bankruptcy
Should I File for Chapter 13?
Individual debtors who go through Chapter 13 bankruptcy have the opportunity to repay all of their debts over an agreed-upon period of time. If you have a regular income and qualify via a financial means test, then you can file a Chapter 13 bankruptcy to restructure or reorganize your debt. Your debt will be consolidated into a lump sum that can be paid off with monthly payments.
Although filing for Chapter 13 bankruptcy can be a difficult venture when you are struggling to pay off your debts, the seasoned bankruptcy experts at the Law Offices of Blake Goodman PC are here to walk you through each phase of the process so that you understand the best approach for your unique situation.
Start with a free bankruptcy consultation.
Will I Lose My Property in Chapter 13?
If Chapter 13 is a reasonable option for you in bankruptcy, then we can help you avoid losing any of your property. Having a qualified Hawaii bankruptcy attorney is essential for navigating this complex financial process. Chapter 13 offers many benefits for individuals, so let us give you the expert bankruptcy guidance you need to secure your financial future.
Can Business Owners File for Chapter 13 Bankruptcy?
Individual debtors engaged in business can also file for Chapter 13. A debtor “engaged in business” is someone who is self-employed and incurs trade credit in the production of income from that employment. A debtor engaged in business can continue to operate their business in a Chapter 13 case. The debtor proposes a plan that outlines how their debts will be repaid and must devote all of their disposable income to payments under the plan for three to five years.
Who Qualifies to File for Chapter 13?
To qualify for Chapter 13, a debtor must have:
- Regular income
- Unsecured debts of less than $419,275
- Secured debts of less than $1,257,850
These dollar amounts listed above are usually increased every three years according to a set formula. A trustee is appointed in all Chapter 13 cases, but the trustee’s role is much more limited than in a Chapter 7 bankruptcy case. In Chapter 13 cases, a debtor receives a discharge when they have completed all of the payments under the plan.
Generally, a discharge in bankruptcy means that a debtor’s obligations are erased or wiped out. When a discharge is granted, it protects the debtor from personal liability on the discharged debt. However, a discharge is only available to certain debtors and for certain debts.
Frequently Asked Questions About Chapter 13 Bankruptcy
Question #1: What is a discharge?
A: Generally, a discharge in bankruptcy means that a debtor’s obligations are erased or wiped out. When a discharge is granted, it protects the debtor from personal liability on the discharged debt. However, a discharge is only available to certain debtors and for certain debts.
Question #2: Can Chapter 13 stop foreclosure?
A: A Chapter 13 Plan helps you avoid losing any property to the bankruptcy system. Our legal team will design a plan to stop foreclosure and stop car repossession. And while the plan reorganizes your mortgage arrearage, in most cases it will also reduce your overall debt load.
Question #3: Can Chapter 13 stop calls from creditors?
A: A Chapter 13 bankruptcy stops creditors from calling you. A strong restraining order goes into effect when you file a Chapter 13 Plan. The automatic stay prevents all creditor contact including calls, letters, lawsuits, garnishment, foreclosure, and harassment. The creditors have to communicate with your attorney in order to reach you.
Question #4: Will I lose my home by filing Chapter 13 bankruptcy?
A: Although it is possible in some cases, Chapter 13 offers homeowners the chance to save their residences. In a Chapter 13 proceeding, even if the debtor is behind on mortgage payments, the wage-earner plan can pay back any missed mortgage payments. The home will not be lost if the debtor continues to make on-going, future payments when due.
Question #5: How often do I have to appear in court?
A: Only one mandatory appearance is necessary, and it’s not in front of a judge or jury. Your section 341 meeting is in front of your trustee in a hearing room. It usually lasts 5 minutes. In a large majority of cases, it’s the only appearance you’ll have to make.