Bankruptcy Attorney on Maui

Before filing for bankruptcy, you must decide whether Chapter 7 or Chapter 13 is the better option. Typically, Chapter 7 is geared toward lower-income debtors looking to liquidate their assets to pay back creditors. Chapter 13 is better suited for higher-income debtors looking to retain some of their assets. With this Chapter 13 bankruptcy, it is assumed that the debtor will use their higher income to pay back their debts over a period of time, usually ranging from 3 to 5 years. 

To determine which type of bankruptcy is right for you, reach out to The Law Office of Jean Christensen LLLC. Our bankruptcy lawyer on Maui is here to walk you through your options to help you come to the best decision for you. 

Understanding the Bankruptcy Process

Bankruptcy can be a complex and overwhelming process, but with the right guidance, it can provide a fresh start and financial relief. At The Law Office of Jean Christensen LLLC, we are dedicated to helping residents of Wailuku and the surrounding areas navigate through the bankruptcy process with ease.

Here is a breakdown of the bankruptcy process:

1. Evaluation: During your free consultation, Attorney Jean Christensen will evaluate your financial situation and determine if bankruptcy is the right solution for you. She will explain the different types of bankruptcy and help you understand which one is most suitable for your circumstances.
2. Filing: Once you decide to move forward with bankruptcy, Attorney Christensen will assist you in preparing and filing the necessary paperwork. She will ensure that all required documents are accurate, complete, and submitted within the specified deadlines.
3. Automatic Stay: When your bankruptcy petition is filed, an automatic stay goes into effect. This means that creditors are legally prohibited from taking any further action to collect debts from you. The automatic stay provides immediate relief from creditor harassment, foreclosure, wage garnishment, and other collection efforts.
4. Meeting of Creditors: Approximately 4-6 weeks after filing, you will attend a meeting of creditors, also known as a 341 meeting. Attorney Christensen will guide you through this meeting, where a bankruptcy trustee will ask you questions about your financial situation and bankruptcy petition.
5. Discharge: If your bankruptcy is approved, you will receive a discharge, which legally eliminates your personal liability for most debts included in your bankruptcy petition. This means that you are no longer obligated to repay those debts.
6. Post-Bankruptcy: After your bankruptcy is discharged, Attorney Christensen can provide guidance on rebuilding your credit and managing your finances moving forward. She is committed to helping you achieve long-term financial stability.

By working with The Law Office of Jean Christensen LLLC, you can have peace of mind knowing that an experienced bankruptcy attorney is by your side throughout the entire process.

Benefits of Bankruptcy

Are you fighting against debt and considering your options? One common debt relief solution is filing for bankruptcy below, we go over some of the advantages and disadvantages of filing for bankruptcy.

Advantages of filing for bankruptcy:

• Filing for bankruptcy immediately triggers what’s called an “automatic stay” this means that creditors will no longer be allowed to pursue payment for your debts. It may also delay or prevent the foreclosure of your home and the repossession of your vehicle.
• You will be assigned a court-appointed bankruptcy trustee who will be in charge of communicating with your creditors. If you are filing for Chapter 13, they will take care of your payments.
• You will feel a sense of relief because you no longer have to deal with multiple creditors, all of your debts will be discharged and you will get a fresh start, or you will only need to pay some of your debts.
• Even if you file for Chapter 7, which is also known as “liquidation bankruptcy”, you have the opportunity to keep some of your assets through federal and state bankruptcy exemption laws
• After your debt is discharged, you can begin rebuilding your credit immediately 

What is the Downside of Filing for Bankruptcy?

Filing for bankruptcy is one of the solutions to fight against insurmountable debt, however, bankruptcy does have some downsides. Before deciding to file or not file for bankruptcy, please be sure to speak with an experienced Maui bankruptcy attorney near you at The Law Office of Jean Christensen LLLC. We are backed by years of experience and are prepared to help guide you to the best solution based on your financial situation.

Below are some disadvantages when it comes to filing for bankruptcy:

• Depending on which chapter of bankruptcy you qualify for, the value of your assets may decrease and it may be necessary to sell some of your assets in order to repay your debts. There are some federal and state bankruptcy exemptions available, however.
• There are costs when it comes to filing for bankruptcy -- this includes court filing fees and fees for completing mandatory credit counseling courses, and more.
• Not all debts can be discharged -- it is possible that you will be responsible for repaying some debt. For example, child support or spousal support cannot be discharged.
• Filing for bankruptcy may affect your ability to rent property in the future
• Filing may also impact your career, especially if you work in the financial industry.

If you are in debt and want to understand which option is best for you, speak with a bankruptcy lawyer at today.

What Is an Automatic Stay? 

As soon as you file for bankruptcy, an automatic stay is issued and goes into effect immediately. This protection legally prohibits creditors from attempting to collect debts that you incurred prior to filing for bankruptcy. 

Benefits of an automatic stay include:

• Most debts are halted
• Creditor phone calls, letters, lawsuits, and garnishments are prohibited 
• Wage garnishments are prohibited 
• Lawsuits are suspended 
• Foreclosures are ceased 

Automatic stays generally last until a case is closed unless you file for bankruptcy more than once in a year. In this case, the automatic stay will only be in place for 30 days.

What Does It Mean If a Bankruptcy Is Discharged?

When a discharge in bankruptcy occurs, a permanent court order is made to release a debtor from personal liability for certain types of debts. This takes place at the end of the bankruptcy process and prevents creditors from contacting or attempting to collect the debt from the debtor. The debtor is no longer legally obligated to pay any debts that are covered in the discharge in bankruptcy, providing them much-needed relief. 

Are All Debts Covered Under a Discharge in Bankruptcy?

No. Debts that are qualified for discharge in bankruptcy vary depending on the type of bankruptcy filed. There are certain types of debts – such as alimony, child support, personal-injury-related debts, drunk driving debts, student loans, government fines, and condo debts – that are not covered under a court-ordered discharge in bankruptcy. 

Examples of debts that can, depending on the type of bankruptcy filed, qualify for discharge include: