How to File for Bankruptcy in Hawaii
Filing for bankruptcy in Hawaii takes planning and research on the part of a debtor. It is important to understand that Hawaii's bankruptcy process closely follows the federal laws and guidelines that are in place throughout the United States. There are also some rules that are specific to the state of Hawaii. Debtors must meet all guidelines set by the court and complete all of the necessary paperwork during the bankruptcy process. Most people will require the assistance of a bankruptcy attorney when pursuing bankruptcy.
It is important to do some research and decide which form of bankruptcy is appropriate before filing any paperwork with the court. Most people end up filing for Chapter 7 bankruptcy. This form of bankruptcy makes it possible for unpaid debts to be discharged through the court. Chapter 13 bankruptcy is another option that is frequently used. This form of bankruptcy makes it possible for a payment plan to be set up between a debtor and their creditors. There are also some other forms of bankruptcy that may be applied in certain situations. Chapter 12 bankruptcy is one of those options. This is a form of bankruptcy that is available exclusively to fishermen and farmers. In addition, some people are able to file for something called Chapter 11 bankruptcy if they have large amounts of debt or debt that is tied to business expenses.
Steps in Hawaii's Bankruptcy Process
There are several steps that a person must take while preparing to file for bankruptcy in Hawaii. Preparation must actually begin months before a bankruptcy petition is ever filed with the court. It is necessary to complete a credit counseling course during the six months leading up to filing a bankruptcy petition. The course must be taken through an agency that is approved in the state of Hawaii. A complete list of approved providers for this course can be found here. It will also be necessary to take and complete a debtor education course during the bankruptcy process. The list of approved providers for this required course can be accessed here.
All debtors will need to be prepared to submit a means test to the court. This test is important because it is used to determine a debtor's eligibility to file for bankruptcy. It will also help to determine the specific form of bankruptcy that a person is eligible for. Information regarding a debtor's income, assets and liabilities must be submitted as part of a means test. Another required step in the bankruptcy process is attendance at a meeting of creditors. A meeting of creditors provides creditors with the opportunity to show that a debtor possesses nonexempt assets that can be turned over. It also provides creditors with the option to object to the terms of a payment plan that has been set up as part of a Chapter 13 case.
A person will need to formally file a bankruptcy petition with the court when they're ready to file for bankruptcy. The petition will create something called an automatic stay. The automatic stay will prevent all creditors from attempting to contact a debtor or collect debts that are owed.
A Glance at Hawaii's Bankruptcy Court
The United States Bankruptcy Court for the District of Hawaii is located in downtown Honolulu. The fee when filing for Chapter 7 bankruptcy in Hawaii is $335. The fee when filing for Chapter 13 bankruptcy in Hawaii is $310. A complete list of fees that can be expected when filing for any form of bankruptcy in the state of Hawaii can be found here. All of the forms that will be used when filing for bankruptcy in Hawaii can be accessed here.