Hawaii Bankruptcy Blog

How Long Does It Take to File Bankruptcy

Millions of people have lost income and found themselves drowning in debt in recent months. Bankruptcy can be a solution to ending the financial stress that affects every part of your life. How long does it take to file bankruptcy and regain some control over your financial future? Depending on the type of bankruptcy you file, it can take just a few months or several years. Here are the details of Chapter 7 and Chapter 13 filing times.

How Long Does Chapter 7 Bankruptcy Take?

Chapter 7 bankruptcy wipes the slate clean of most debts for individuals who have insufficient income to repay their debts under a Chapter 13 debt consolidation plan. Chapter 7 is the quickest route to bankruptcy debt relief, but you need to pass a means test to

What Are the Advantages of Filing Bankruptcy?

Filing for bankruptcy is often considered a last resort when someone has unmanageable debt. For many, bankruptcy is the best choice that can eliminate debt, finally stop harassment by creditors, and help build a stronger financial future. Wanting to know more about what are the advantages of filing bankruptcy? Here are your answers.

Advantages of Filing Bankruptcy

Triggers the Automatic Stay

As soon as you file for bankruptcy, the court will issue something called a stay against attempts to collect a debt. This means that all creditors to whom you owe dischargeable debts will be legally required to suspend any collection activity against you until your bankruptcy proceedings have been completed.

The triggering of

Student Loan Repayment Plans: Income-Based Repayment & Forgiveness

Student loan debt has been a topic of discussion by the media and politicians in the past few years. While some claim that student loan debt is crippling, there are repayment options available which can help student loan borrowers ease the burden of repayment. Here we examine the differences between the various student loan repayment options as well as common Q&As about student loan repayment plans.

Income-Based Repayment (IBR)

Income-based Repayment plan

Income-Based Repayment is generally considered less favorable for borrowers than other options. However, if you are a Federal Family Education Loan Program (FEEL) borrower, this is the only option you have available. Your payment is based on adjusted gross income for IBR. You can stay in IBR even if you stop qualifying due to

Chapter 12 Bankruptcy for Farmers and Fishermen

Chapter 12 bankruptcy is a special type of bankruptcy that is only available to farmers and fishermen. This type of bankruptcy was created back in the 1980s, and it is a lot like a Chapter 13 bankruptcy. However, Chapter 12 gives the filer more flexibility by allowing them to make periodic payments. This option is designed to take into account the seasonal nature of fishing or farming for a living.

How does a Chapter 12 Bankruptcy work?

The filing process for a Chapter 12 bankruptcy is very similar to other types of bankruptcy. First, you will need to gather all your financial information, fill out your paperwork, and then file your petition with the court.

Once you file your petition, an automatic stay will go into effect. The

Discrimination and Bankruptcy

If you are thinking about filing for bankruptcy, you may be concerned about discrimination after you file. Many people worry that they won’t get hired for a job, or they may get fired from their current one if they file. You may also be concerned that your driver’s license or government-issued ID may be revoked, or you may not be able to get a student loan.

The good news is, bankruptcy law protects you from discrimination in these cases. Here’s what you need to know about discrimination and bankruptcy.

Can I Be Fired or Not Hired Because I Filed for Bankruptcy?

According to the bankruptcy code, your employer may not discriminate against you for filing for bankruptcy. That means you cannot be fired just because you filed. In fact, your employer cannot fire

Debts Sold to Collection Agencies?

When you file for bankruptcy, one of the greatest benefits is an end to the constant letters and phone calls from your creditors. Once those bankruptcy papers are submitted, in most cases, your creditors must stop all attempts to collect debts, including those harassing phone calls. But, what if your creditor decides to sell off your debt to someone else after you file your bankruptcy? Does the process start all over again? Do you still have to pay the debt? Here’s what you need to know.

The Selling of Debts

When you owe money to a creditor, the creditor can choose to sell the debt just like any other asset. Creditors who don’t want to wait for payment during a Chapter 13, or who believe they won’t get paid at all, can

Who’s Not Eligible to File Bankruptcy?

Most people who have a permanent address or business, or own property in the United States are eligible to file for bankruptcy. However, there are some exceptions and meet specific guidelines in order to be eligible to have your debt discharged. Here’s how to know if you’re eligible to file.

Chapter 7 vs Chapter 13 Bankruptcy

In a Chapter 7 bankruptcy, your non-exempt property is sold, and the proceeds are used to repay a portion of your debt. When a Chapter 13 bankruptcy is filed, you keep your property and repay your debtors according to a repayment plan lasting three to five years. The eligibility requirements for each type of bankruptcy are based on how much money you make and how much disposable income you have.

Income Too High

You

The Difference Between an Auto Loan Charge Off and Repossession in Bankruptcy

What is a Charge Off? 

If you come across the term “charge off” on your credit report, you may think that it means the debt can no longer be collected. Unfortunately, that is not the case. When a debt has been charged off, it has most likely turned over to a collection agency for collection. In some cases, the collection agency is being paid to collect the debt for the original lender. In other cases, the debt has been sold by the lender as now in the hands of a collection agency who will attempt to collect the debt for their own gain. In either case, you are still responsible for the debt. 

How is a Repossession Different? 

When a

Bankruptcy 101: Understand the Basics Before Filing

Job loss, foreclosure, divorce, injury, or illness… just about everyone goes through one of these hurdles at some point in life. If you’ve gone through a similar problem, or you’re dealing with it right now, you probably know from personal experience how fast debt can pile up, leaving you and your family in a precarious position.  

Bankruptcy could provide you with relief from overwhelming debt. It can give you a chance for a fresh start, while still compensating your creditors for their investment. On the other hand, going through bankruptcy will affect your life for several years after you file, and the process isn’t an easy one. 

If you are considering filing for bankruptcy, you should learn everything you can about the process before you submit your

How to Rebuild Your Finances and Credit After Bankruptcy

So, you’ve filed for Chapter 7 bankruptcy and been awarded a clean slate. That’s all well and good, but will you ever have decent credit again? Most likely, if you were eligible to file for bankruptcy, you were already struggling financially, and your credit was in bad shape. And, your credit score probably dropped even more when you were granted your bankruptcy. Thankfully, there are things you can do to start building your credit back up right away. By following our advice, you should see your score start to rise in about a year. 

How to Start Rebuilding Your Finances 

Now that you have a fresh start, potential lenders will want to see that you have enough money coming in pay your bills, with at least a little

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