If you’re considering filing bankruptcy in Hawaii, you’ll need to understand the types, costs, as well as some helpful advice to finding good attorneys.

Am I Qualified for Bankruptcy?

Filing for bankruptcy is a legal process that allows individuals and businesses to seek relief from overwhelming debts when they are unable to repay their creditors. Bankruptcy laws vary from state to state in the United States, including in Hawaii. To determine if you are qualified to file bankruptcy in Hawaii, you need to consider several factors, including your financial situation, income, and the type of bankruptcy you want to file.

1. Residency Requirement: To file for bankruptcy in Hawaii, you generally need to be a resident of the state. If you have lived in Hawaii for at least 90 days, you should meet this residency requirement. However, there are exceptions, such as if you recently moved to Hawaii or have not lived there long enough. It’s essential to consult with an experienced bankruptcy attorney to determine if you meet the residency requirement.
2. Credit Counseling: Before filing for bankruptcy in Hawaii, you must complete a credit counseling course from an approved agency. This course aims to provide financial education and help you explore alternatives to bankruptcy. You will need to present a certificate of completion when you file your bankruptcy petition.
3. Means Test: The means test is a crucial aspect of determining eligibility for bankruptcy, especially if you are considering Chapter 7 bankruptcy. The means test compares your income to the median income in Hawaii for a household of your size. If your income is below the median, you likely qualify for Chapter 7 bankruptcy. If it’s above the median, you may still be eligible for Chapter 7 if you pass the second part of the means test, which considers your disposable income after deducting certain allowed expenses. If you don’t pass the means test, you may need to consider Chapter 13 bankruptcy.
4. Chapter 7 Bankruptcy Eligibility: Chapter 7 bankruptcy, often referred to as liquidation bankruptcy, allows for the discharge of most unsecured debts, such as credit card debt and medical bills. To qualify for Chapter 7 in Hawaii, you must meet the means test requirements mentioned earlier. Additionally, you cannot have received a Chapter 7 discharge within the past eight years or a Chapter 13 discharge within the past six years.
5. Chapter 13 Bankruptcy Eligibility: Chapter 13 bankruptcy, also known as a reorganization bankruptcy, allows you to create a repayment plan to pay off your debts over a three to five-year period. Eligibility for Chapter 13 in Hawaii does not depend on the means test, but you must have a regular source of income to fund your repayment plan. Additionally, your secured and unsecured debts must fall within specific limits, which change periodically and are subject to adjustment.
6. Bankruptcy Education Course: After filing for bankruptcy in Hawaii, you must complete a debtor education course from an approved agency. This course focuses on financial management and is intended to help you make better financial decisions in the future. You must complete this course to receive a discharge of your debts.
7. Exemptions: Hawaii has its own set of bankruptcy exemptions that determine what property you can keep when you file for bankruptcy. Exemptions protect certain assets from being sold to repay your creditors. Some common exemptions in Hawaii include the homestead exemption, which protects a portion of your home’s equity, and exemptions for personal property like clothing, furniture, and vehicles.
8. Legal Assistance: Navigating the complexities of bankruptcy law can be challenging, and it’s highly recommended to seek legal advice from a qualified bankruptcy attorney in Hawaii. They can help you assess your eligibility, guide you through the filing process, and ensure that you maximize the benefits of bankruptcy while protecting your assets to the fullest extent possible.

To determine if you are qualified to file for bankruptcy in Hawaii, you should consider factors such as residency, credit counseling, means test results, chapter-specific eligibility criteria, completion of required courses, and the use of exemptions. Consulting with a knowledgeable bankruptcy attorney is crucial to ensure that you meet all the necessary requirements and make informed decisions about your financial future. Bankruptcy can be a valuable tool for debt relief, but it’s essential to understand the process and eligibility criteria specific to Hawaii before proceeding.

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Do You Need a Lawyer to File For Bankruptcy in Hawaii?

Filing for bankruptcy in Hawaii, like in any other state, is a complex legal process that involves various forms, documents, and court proceedings. While it is possible to file for bankruptcy without an attorney, it is generally advisable to seek legal representation. Whether you need a lawyer to file for bankruptcy in Hawaii depends on your specific situation and the type of bankruptcy you are considering, but here are some important factors to consider:

1. Complexity of the Process: Bankruptcy law is intricate and involves a substantial amount of paperwork and legal procedures. If your case is relatively straightforward, and you are confident in your ability to navigate the process, you may consider filing pro se (without an attorney). However, even seemingly simple cases can become complicated, and mistakes can have serious consequences. If you have significant assets, multiple creditors, or complex financial situations, it is strongly recommended to hire an attorney.
2. Chapter 7 vs. Chapter 13: The type of bankruptcy you plan to file can influence whether you need an attorney. Chapter 7 bankruptcy, which involves liquidating your non-exempt assets to pay off creditors, is generally more straightforward than Chapter 13 bankruptcy, which involves creating a repayment plan. If you are filing for Chapter 7 and have a straightforward case, you may be able to file pro se with the guidance of self-help resources provided by the court. However, Chapter 13 cases tend to be more complicated, and legal representation is often necessary to navigate the intricacies of the repayment plan.
3. Maximizing Exemptions: Each state, including Hawaii, has its own set of bankruptcy exemptions that determine what property you can keep when you file for bankruptcy. An experienced bankruptcy attorney in Hawaii will be familiar with the state’s exemption laws and can help you maximize the protection of your assets. They can also advise you on how to best use exemptions to your advantage.
4. Protection from Creditors: Creditors in a bankruptcy case can be aggressive, and they may challenge your right to discharge certain debts or object to your proposed repayment plan. An attorney can help protect your rights and interests, ensuring that you receive the full benefits of bankruptcy relief.
5. Legal Expertise: Bankruptcy attorneys have extensive knowledge of federal and state bankruptcy laws, as well as the local rules and procedures specific to Hawaii. They can guide you through the entire process, help you complete required forms accurately, and represent you in court if necessary.
6. Avoiding Costly Mistakes: Filing for bankruptcy without an attorney can lead to costly mistakes. Errors in your bankruptcy paperwork, omissions, or failure to meet deadlines can result in your case being dismissed, delays, or even the loss of assets that could have been protected with proper legal guidance.
7. Debt Discharge: A skilled bankruptcy attorney will work to ensure that you receive the maximum debt discharge available under the law. They can help you address any potential challenges to discharge and navigate the complexities of the process to achieve the best outcome for your financial situation.
8. Stress Reduction: Dealing with financial difficulties and the prospect of bankruptcy can be incredibly stressful. Hiring an attorney can provide peace of mind, as they will handle the legal aspects of your case, allowing you to focus on rebuilding your financial future.

While it is possible to file for bankruptcy without an attorney, it’s essential to carefully evaluate your situation and consider the potential benefits of legal representation. Bankruptcy attorneys can help you make informed decisions, protect your rights, and navigate the complexities of the bankruptcy process in Hawaii, ultimately increasing your chances of a successful outcome and a fresh financial start. If you are unsure about whether you need an attorney, consulting with one in an initial consultation is a wise step to take.

Cost to File Chapter 7 Bankruptcy in Hawaii

The cost to file for Chapter 7 bankruptcy in Hawaii involves several fees and expenses, and it’s essential to be aware of these costs when considering bankruptcy as an option for debt relief.

Here’s a breakdown of the primary expenses associated with filing for Chapter 7 bankruptcy in Hawaii:

1. Filing Fee: The most significant upfront cost when filing for Chapter 7 bankruptcy is the filing fee. The filing fee for Chapter 7 bankruptcy in Hawaii is $375. However, it’s important to note that these fees can change over time, so you should check the most current fee schedule on the website of the U.S. Bankruptcy Court for the District of Hawaii or consult with a bankruptcy attorney in Hawaii for the most up-to-date information.
2. Credit Counseling and Debtor Education Courses: Before and after filing for Chapter 7 bankruptcy, you are required to complete credit counseling and debtor education courses from approved agencies. These courses typically cost around $58 to $120 each, but fees may vary depending on the service provider you choose. Some agencies offer fee waivers or reduced fees for individuals with low income.
3. Attorney’s Fees: While you can technically file for Chapter 7 bankruptcy pro se (without an attorney), many individuals choose to hire a bankruptcy attorney to guide them through the process. Attorney fees can vary widely depending on the complexity of your case, your location in Hawaii, and the attorney’s experience. On average, you can expect attorney fees for a Chapter 7 bankruptcy to range from $1,220 to $2,650 or more. Some attorneys may offer flexible payment plans to help make their services more accessible.
4. Additional Costs: There may be other miscellaneous costs associated with your bankruptcy filing, such as fees for obtaining credit reports, notary fees, postage, and any required document photocopies. These costs can vary but are typically relatively minor in comparison to the other expenses mentioned above.
5. Waiver or Installment Plan: If you are unable to afford the Chapter 7 filing fee upfront, you may be eligible for a fee waiver or request to pay the fee in installments. You’ll need to meet certain income criteria and complete the appropriate forms to request these accommodations. Your bankruptcy attorney can assist you in this process if you have legal representation.

While the cost of filing for Chapter 7 bankruptcy in Hawaii can be significant, it’s essential to weigh these expenses against the potential benefits of obtaining debt relief and a fresh financial start. Consulting with an experienced bankruptcy attorney can help you understand the costs involved, explore your options, and make informed decisions about your financial future.

Cost to File Chapter 11 Bankruptcy in Hawaii

Filing for Chapter 11 bankruptcy in Hawaii can be a complex and expensive process, primarily because Chapter 11 is typically used by businesses and individuals with substantial assets and debts. Here’s a breakdown of the key costs and fees associated with filing for Chapter 11 bankruptcy in Hawaii:

1. Filing Fee: The initial filing fee for a Chapter 11 bankruptcy case in Hawaii can be substantial. Bankruptcy fees are subject to change, and it’s essential to check the most current fee schedule on the website of the U.S. Bankruptcy Court for the District of Hawaii or consult with a bankruptcy attorney in Hawaii for up-to-date information.
2. Attorney’s Fees: Chapter 11 bankruptcy is highly complex and typically requires the assistance of experienced bankruptcy attorneys due to its reorganization and debt repayment aspects. Attorney fees for Chapter 11 cases can vary significantly based on the complexity of the case, the size of the debtor’s assets and liabilities, and the attorney’s hourly rate. In many Chapter 11 cases, attorney fees can run into tens of thousands of dollars or more.
3. Professional Fees: In addition to attorney fees, there may be the need to hire other professionals, such as accountants, appraisers, and financial advisors, to assist in preparing the necessary financial statements, plans, and disclosure documents required for the Chapter 11 case. These professional fees can add substantial costs to the bankruptcy process.
4. U.S. Trustee Fees: Chapter 11 cases are subject to ongoing fees paid to the U.S. Trustee’s office. These fees are based on the debtor’s quarterly disbursements and can vary depending on the amount and nature of the disbursements. The U.S. Trustee monitors the case and ensures compliance with bankruptcy laws and regulations.
5. Creditors’ Committee Costs: In some Chapter 11 cases, a creditors’ committee may be appointed to represent the interests of unsecured creditors. The expenses associated with maintaining the creditors’ committee, such as legal fees and administrative costs, may be paid by the debtor’s estate.
6. Filing of Various Motions and Documents: Throughout the Chapter 11 process, there may be additional costs associated with filing various motions, documents, and court hearings. These costs can include court reporter fees, filing fees for amendments, and other administrative expenses.
7. Plan Confirmation and Exit Costs: Once a Chapter 11 plan is proposed and confirmed by the court, there may be additional costs related to the implementation of the plan and the eventual exit from bankruptcy. These costs can include fees for distributing funds to creditors, closing the bankruptcy estate, and finalizing the case.

Given the complexity and high costs associated with Chapter 11 bankruptcy, it is essential for individuals and businesses considering this option to consult with an experienced bankruptcy attorney in Hawaii. An attorney can provide guidance on the feasibility of a Chapter 11 reorganization, help navigate the legal requirements, and assist in developing a comprehensive plan to address financial challenges and protect assets.

Cost to File Chapter 13 Bankruptcy in Hawaii

Filing for Chapter 13 bankruptcy in Hawaii involves several costs and fees, and it’s essential to understand these expenses if you are considering this form of debt relief. Chapter 13 bankruptcy is often referred to as a “wage earner’s plan” because it allows individuals with a regular income to create a repayment plan to pay off their debts over a three to five-year period. Here’s a breakdown of the key costs associated with filing for Chapter 13 bankruptcy in Hawaii:

1. Filing Fee: The filing fee for a Chapter 13 bankruptcy case in Hawaii is $378. However, bankruptcy fees can change over time, so it’s crucial to check the most current fee schedule on the website of the U.S. Bankruptcy Court for the District of Hawaii or consult with a bankruptcy attorney in Hawaii for the most up-to-date information.
2. Attorney’s Fees: While it is possible to file for Chapter 13 bankruptcy without an attorney (pro se), many individuals opt to hire a bankruptcy attorney to navigate the complexities of the process. Attorney fees for Chapter 13 cases can vary based on factors such as the complexity of your case, your location in Hawaii, and the attorney’s experience. On average, you can expect attorney fees for Chapter 13 bankruptcy to range from $2,820 to $4,850 or more. Some attorneys may offer flexible payment plans to make their services more accessible.
3. Credit Counseling and Debtor Education Courses: Before and after filing for Chapter 13 bankruptcy, you are required to complete credit counseling and debtor education courses from approved agencies. These courses typically cost around $60 to $120 each, but fees may vary depending on the service provider you choose. Some agencies offer fee waivers or reduced fees for individuals with low income.
4. Plan Payments: In a Chapter 13 bankruptcy, you are required to make regular plan payments to the bankruptcy trustee. These payments are used to fund your proposed repayment plan, which outlines how your debts will be paid over the course of the plan’s duration (usually three to five years). The amount of your plan payments is determined by your income, expenses, and the amount of debt you have.
5. Miscellaneous Costs: There may be additional costs associated with your Chapter 13 bankruptcy, such as fees for obtaining credit reports, notary fees, postage, and any required document photocopies. These costs are generally relatively minor compared to the other expenses mentioned above.

Chapter 13 bankruptcy can be an effective way to manage and reduce your debts while protecting your assets. However, it’s essential to weigh the costs and benefits carefully. Consulting with an experienced bankruptcy attorney can help you understand the expenses involved, assess your eligibility, and develop a repayment plan that fits your financial situation.

Reliable Bankruptcy Attorneys in Hawaii

Below is a list of reputable bankruptcy attorneys in Hawaii. They can help you with both personal and business bankruptcy information.

Greg Dunn Bankruptcy and Debt Relief Attorney
841 Bishop St Suite 2221, Honolulu, HI 96813, United States

Blake Goodman, PC, Attorney
900 Fort Street Mall #910, Honolulu, HI 96813, United States

Ed Magauran, Attorney
1188 Bishop St STE 2610, Honolulu, HI 96813, United States

Abelmann Peterson Bankruptcy Attorneys
677 Ala Moana Blvd Suite 510, Honolulu, HI 96813, United States

Hawaii Zip Codes We Proudly Serve:

96822

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