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Hawaii Bankruptcy Lawyer

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Throughout the Hawaiian Islands, the total bankruptcy filings exceeds more than 4,000 each year. Bankruptcy in the United States is a common occurrence overall, as businesses and individuals find themselves in an impossible financial situation that they find is inescapable without legal help. Bankruptcy protection may be the answer these individuals or businesses are looking for to get debt relief but is it the best answer?

Bankruptcy can be defined as the legal inability to pay debts or being in the state of having legally declared bankruptcy. Obtaining bankruptcy protection can be a strenuous process, and because there are various types you can file for, it can be complicated. It is in your own best interest to hire a bankruptcy lawyer or attorney to help you with your case , especially if you own a business and have assets.

It is important to realize that bankruptcy does not necessarily allow you to abstain from paying back every kind of debt you made have. Recent changes to the bankruptcy laws make it more difficult for middle class Americans to completely discharge debt. You will likely have to negotiate a repayment plan for a portion of your debt. You will have to attend a credit counseling session and pay increased fees. A good bankruptcy lawyer will help you navigate the system, and decide whether Chapter 7 or Chapter 13 is right for you.

A Hawaii bankruptcy lawyer or attorney will discuss the different types of bankruptcy and advise you on which one is best for you. The various forms of bankruptcy include chapter 7 and chapter 13 (the most common types), and chapter 9, chapter 11, chapter 12, and chapter 15 (less common). Married couples tend to file chapter 7, while businesses typically file chapter 7 and 11.

Chapter 7, which is known as liquidation bankruptcy, is a good choice for those who have no real assets to protect. Under Chapter 7, people are only be required to liquidate assets that are not exempt by law, such as vehicles that are under $2,775. Items that are not exempt will be sold in order to pay off a portion of the debt, and the rest will be permanently discharged.

Chapter 13 is commonly referred to as a wage earner's plan. This allows you to pay off debt over 36-60 months, according to a court-approved repayment plan. This allows you to catch up on your mortgage, and does not require you to sell your home to pay your creditors.

If housing foreclosure and overwhelming credit card debt is a daily stress, Chapter 13 could be your solution. This allows you for a repayment plan over three to five years, all while letting you catch up on your mortgage and keep your home. You can stop harassing phone calls, collection letters and wage garnishments. This is a great option for people with steady income who have been put behind financially due to unforeseen circumstances and just need a chance to catch up.

Once a Hawaii bankruptcy lawyer or attorney has explained your options, they will oversee your case, ensuring that you will never have to face a difficult decision alone. In some situations, the individual or business will go before a Hawaii judge and negotiate a payment plan. They may have a partial or full discharge of debt. If this seems too good to be true, you are correct it is.

If you file for bankruptcy, your debts will be discharged, but your credit will be ruined for as long as 10 years. A bankruptcy lawyer or attorney will explain the risks to you as well as offer other possible alternatives to bankruptcy. Keep in mind that a bankruptcy lawyer or attorney will also have extensive knowledge in debt management practices.

It is important to review your situation with a bankruptcy lawyer, who can help you determine the best route for your future. Contact a Hawaii bankruptcy attorney today at the American Bar Association website and stop the stress of overwhelming debt, so you can get back to living.