Maui Chapter 7 Bankruptcy Attorney 

Chapter 7 bankruptcy enables debtors to wipe out their debts and get a fresh financial start. Whereas in Chapter 13, the debtor retains their assets and properties and participate in a repayment plan to cover their debts, in Chapter 7, the debtor’s assets are liquidated to cover theirs. A trustee is established to collect and sell the debtor’s non-exempt assets, pay the amount of money that is exempted to the debtor, and liquidate and distribute the remaining proceeds to the creditors. 

While Chapter 7 bankruptcy is intended to provide debtors with immense financial relief, there are certain types of debt to do not qualify for discharge. These include:

• Child support 
• Alimony 
• Student loans 
• Fraudulent debts 

At The Law Office of Jean Christensen LLLC, our Chapter 7 bankruptcy attorney on Maui can help guide you through the bankruptcy process and provide the candid advice and steadfast support you deserve. 

How Do I File For Chapter 7 Bankruptcy in Hawaii?

If you are considering filing for Chapter 7 bankruptcy in Hawaii, it is important to understand the process as well as the cost and timeframe associated with it. The first step is to seek advice from a Maui Chapter 7 attorney who can help you determine if bankruptcy is the best option for you. The attorney will also be able to provide guidance on the paperwork required to file, as well as help you understand the timeline of filing and any other necessary steps in the process. Additionally, they will be able to review your financial situation and provide recommendations on how best to manage it before and after filing for bankruptcy.

The steps for filing chapter 7 bankruptcy are as follows: 

• Gather necessary financial documents 
• Take a credit counseling course 
• Fill out and file required paperwork 
• Turn in financial documents 
• Attend 341 creditor's meeting 
• File course certification 
• Receive debt discharge 

Filing for Chapter 7 bankruptcy in Hawaii can provide relief from overwhelming debts and help you get a fresh start financially. Consulting with an experienced Maui Chapter 7 attorney can help you make an informed decision about filing for bankruptcy in Hawaii. 

Is There a Debt Limit for Chapter 7?

While there is a debt limit for Chapter 13 bankruptcy, there is no ceiling on the amount of debt with which you can file for Chapter 7. Chapter 7 is available to any qualifying individual with any amount of debt. However, to qualify for this type of bankruptcy, you must pass the Hawaii Means Test for bankruptcy. 

Who Is Eligible for Chapter 7?

The Hawaii Means Test for bankruptcy is a calculation designed to determine if debtors qualify for Chapter 7 bankruptcy and prevent individuals who can afford to pay back their debts from filing for bankruptcy. Your household median income must be below the median household income for the same household size in Hawaii in order to file for Chapter 7. If your income is above the median, you may still qualify for Chapter 7 if the means test calculation demonstrates that you would be left with no disposable income. 

A debtor may not qualify for Chapter 7 bankruptcy if:

• They did not attend credit counseling 
• They qualify for Chapter 13 bankruptcy
• They attempted to defraud creditors or the bankruptcy court
• They were discharged debt under Chapter 7 in the past eight (8) years
• They were discharged debt under Chapter 13 in the past six (6) years 

Chapter 7 Exemptions in Hawaii

Debtors filing for Chapter 7 bankruptcy can opt to use the State of Hawaii bankruptcy exemptions or the federal exemptions provided in the Bankruptcy Code. However, they may not choose some state exemptions and some federal exemptions, they must use either all-state or all-federal exceptions.

There are significant differences between the two exemptions and selecting the most advantageous can be complicated. Working with a skilled Chapter 7 bankruptcy lawyer on Maui can help you to make the right choice for your unique situation. Call The Law Office of Jean Christensen LLLC to schedule a free consultation with Attorney Christensen. 

What Happens After Filing Chapter 7?

After filing Chapter 7 bankruptcy in Hawaii, several key events take place. Below is what typically happens:

1. Automatic stay: When you file for Chapter 7, the automatic stay is immediately effective. This stay provides immediate protection from most creditors, stopping collection actions, foreclosure proceedings, and wage garnishments.
2. Meeting of creditors: You will be required to attend a meeting of creditors, also known as a 341 meeting. During this meeting, a bankruptcy trustee will review your case, ask you questions about your financial situation, and ensure that you have disclosed all your assets and debts accurately.
3. Asset liquidation: In a Chapter 7 bankruptcy, some of your non-exempt assets may be sold or liquidated by the trustee to repay your creditors. However, Hawaii has its own specific exemptions that may protect certain assets from liquidation.
4. Debt discharge: If everything proceeds smoothly, you will receive a discharge order from the court, typically within a few months of the meeting of creditors. The discharge eliminates your personal liability for most types of debts, providing you with a fresh start financially.

What Can You Not Do After Filing For Chapter 7?

After filing Chapter 7, there are also certain limitations and restrictions on what you cannot do. After filing, do not:

• Incur new debt without court approval: You generally cannot incur new debt without obtaining court approval during or immediately after filing Chapter 7. This restriction is in place to prevent individuals from taking on additional financial obligations that they may not be able to repay.
• Dispose of assets: You cannot dispose of any assets or property that are part of your bankruptcy estate without court approval. This includes selling, transferring, or giving away assets. The bankruptcy court has jurisdiction over your assets during the bankruptcy process.
• Hide or conceal assets: It is crucial to be completely transparent and honest about your assets during the bankruptcy process. Intentionally hiding or concealing assets from the bankruptcy court is illegal and can have severe consequences.
• Receive another Chapter 7 discharge too soon: In Hawaii, there is an 8-year waiting period between Chapter 7 discharges. This means that you cannot receive another Chapter 7 discharge until eight years have passed since your previous Chapter 7 discharge.
• Fail to comply with court requirements: It is important to comply with all court requirements and fulfill your obligations during the Chapter 7 process. This includes attending mandatory meetings, providing requested documentation, and cooperating with the bankruptcy trustee.

It is crucial to consult with a knowledgeable bankruptcy attorney in Hawaii who can provide specific guidance and advice tailored to your situation. They can ensure that you understand the post-filing restrictions and help you navigate the bankruptcy process smoothly.

If you are considering filing bankruptcy Chapter 7 in Hawaii, consulting with a Maui Chapter 7 lawyer is crucial to navigate the process effectively. At The Law Office of Jean Christensen LLLC, we offer a free consultation to discuss your options. With over 17 years of experience, we provide professional guidance and support throughout the bankruptcy journey. Our flexible payment plans and affordable rates aim to make our services accessible to clients in need.

Start Your Financial Recovery Today!

Attorney Jean Christensen is deeply familiar with the customs and practices of the United States Bankruptcy Court for the District of Hawaii. She has extensive experience with all types of bankruptcy cases, including Chapter 7 and Chapter 13, and is here to put a stop to creditor harassment as you work toward financial freedom. 

Choose Attorney Jean Christensen because:

• She clerked for two years for the chief judge of the U.S. Bankruptcy Court for the District of Hawaii 
• She has served as the director of the Hawaii Bankruptcy Bar Association 
• She is a frequent presenter on consumer bankruptcy topics at seminars and conferences 
• She works directly with her clients from the initial consultation until the closing of their case

When you work with us, we will explain the specific details of filing Chapter 7 bankruptcy in Hawaii and help you achieve a fresh financial start. Attorney Christensen can provide assistance every step of the way from your 341 meeting to rebuilding credit after your bankruptcy. Contact us to request a free initial consultation and take the first step to work toward a brighter financial future.

For candid advice and a free consultation call (808) 865-0420 or send us a message online.