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

Am I Qualified for Bankruptcy?

Bankruptcy can be a daunting and complex process, but it’s often the lifeline individuals and businesses need to get a fresh start when overwhelmed by debt. In Honolulu, Hawaii, residents have several bankruptcy options to choose from, including Chapter 7, Chapter 11, and Chapter 13 bankruptcy. This article will guide you through the bankruptcy landscape in Honolulu, covering topics like qualification criteria, the need for legal assistance, and the costs associated with each type of bankruptcy.

Bankruptcy can provide a financial fresh start, but not everyone is eligible to file. Understanding the qualification criteria is crucial. In Honolulu, HI, the key factors determining eligibility include:

1. Residency Requirements: To file for bankruptcy in Honolulu, you must be a resident of Hawaii or have a domicile, place of business, or property in the state.
2. Means Test: The means test is a crucial determinant for Chapter 7 bankruptcy eligibility. It assesses your income and expenses to determine if you have the means to repay your debts. If your income falls below the state’s median income level for your household size, you may qualify for Chapter 7.
3. Credit Counseling: Before filing for bankruptcy in Honolulu, HI, you must complete a credit counseling course from an approved agency within 180 days of filing. This requirement is mandatory for all bankruptcy filers.
4. Previous Bankruptcy Discharges: If you’ve received a bankruptcy discharge in the past, there may be limitations on when you can file again. For instance, if you previously filed Chapter 7 and received a discharge, you must wait eight years before filing another Chapter 7 case.
5. Chapter-Specific Criteria: Each type of bankruptcy has its own unique eligibility criteria. For example, Chapter 13 bankruptcy is typically available to individuals with a regular income who can develop a repayment plan. Chapter 11 is more common for businesses and individuals with substantial debts.

It’s essential to consult with a bankruptcy attorney in Honolulu, HI, to assess your eligibility accurately and determine which chapter is the best fit for your financial situation.

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Do You Need a Lawyer to File For Bankruptcy in Honolulu, HI?

While it is possible to file for bankruptcy in Honolulu, HI, without an attorney, it is generally not recommended. Here’s why:

1. Legal Expertise: Bankruptcy law is complex, and the intricacies of filing can be overwhelming. A qualified bankruptcy attorney in Honolulu, HI, has the knowledge and experience to navigate the legal system, ensuring that your case adheres to all the necessary regulations.
2. Avoid Costly Mistakes: Filing for bankruptcy involves numerous forms and documentation, and errors or omissions can lead to delays or even the dismissal of your case. An attorney can help you complete the paperwork accurately and avoid costly mistakes.
3. Asset Protection: An attorney can provide valuable guidance on protecting your assets. They can help you make informed decisions regarding exemptions, ensuring that you retain as much property as possible.
4. Negotiation and Representation: If creditors challenge your bankruptcy filing or seek to have debts excluded from discharge, an attorney can represent your interests in court and negotiate on your behalf.
5. Peace of Mind: Filing for bankruptcy is a significant step, and it can be emotionally challenging. Having an attorney by your side can provide peace of mind, knowing that a professional is handling the process for you.

While hiring an attorney comes with associated costs, these are often outweighed by the potential savings, asset protection, and the successful resolution of your bankruptcy case.

Cost to File Chapter 7 Bankruptcy in Honolulu, HI

Chapter 7 bankruptcy, often referred to as “liquidation bankruptcy,” allows individuals to discharge unsecured debts. The cost to file Chapter 7 bankruptcy in Honolulu, HI, typically includes:

1. Attorney Fees: The attorney’s fees for handling a Chapter 7 bankruptcy case in Honolulu can vary depending on the complexity of your case and the attorney’s experience. On average, you can expect to pay anywhere from $1,000 to $2,500 or more in attorney fees.
2. Filing Fee: The current filing fee for Chapter 7 bankruptcy in Honolulu, HI, is $338. However, fee waivers may be available for individuals with income below 150% of the federal poverty guidelines.
3. Credit Counseling and Debtor Education: As mentioned earlier, you must complete credit counseling and debtor education courses. These courses typically cost around $50 to $100 each.
4. Miscellaneous Costs: There may be additional costs for services such as credit reports and notary fees. These expenses can vary depending on your specific circumstances.

It’s important to discuss all potential costs with your bankruptcy attorney during your initial consultation to get a clearer picture of the financial requirements for filing Chapter 7 bankruptcy in Honolulu.

Cost to File Chapter 11 Bankruptcy in Honolulu, HI

Chapter 11 bankruptcy primarily targets businesses and individuals with substantial debts who want to restructure their financial affairs. The cost of filing Chapter 11 bankruptcy in Honolulu, HI, is notably higher compared to Chapter 7. Here are the key expenses involved:

1. Attorney Fees: Given the complexity of Chapter 11 cases, attorney fees are generally much higher. Costs can range from several thousand dollars to tens of thousands, depending on the complexity of your situation.
2. Filing Fee: As of the time of this writing, the filing fee for a Chapter 11 bankruptcy case in Honolulu, HI, is $1,738. This fee can change over time, so it’s essential to verify the current amount before filing.
3. Miscellaneous Costs: Similar to Chapter 7 bankruptcy, there may be additional expenses for services such as credit reports, appraisals, and court costs. These costs can add up significantly.

Chapter 11 bankruptcy is a complex and expensive process, and it’s crucial to consult with an experienced bankruptcy attorney in Honolulu to understand the full scope of potential costs and the benefits of pursuing this type of bankruptcy.

Cost to File Chapter 13 Bankruptcy in Honolulu, HI

Chapter 13 bankruptcy allows individuals with regular income to create a repayment plan to address their debts over a period of three to five years. The cost to file Chapter 13 bankruptcy in Honolulu, HI, typically includes:

1. Attorney Fees: Attorney fees for Chapter 13 bankruptcy in Honolulu can vary but generally range from $3,000 to $6,000 or more. These fees can be paid through the repayment plan, making it more manageable for filers.
2. Filing Fee: The filing fee for Chapter 13 bankruptcy in Honolulu, HI, is currently $313. Like Chapter 7, fee waivers may be available for individuals with limited income.
3. Credit Counseling and Debtor Education: Just as in other bankruptcy chapters, you’ll need to complete credit counseling and debtor education courses, which may cost around $50 to $100 each.
4. Miscellaneous Costs: Additional costs, such as credit reports and notary fees, may apply depending on your specific circumstances.

Chapter 13 bankruptcy provides a structured way to repay your debts and can help you retain valuable assets like your home. Discussing your financial situation with a qualified bankruptcy attorney in Honolulu is essential to understand the total costs involved and create a feasible repayment plan.

Filing for bankruptcy in Honolulu, HI, is a significant decision that can provide relief from overwhelming debt. Understanding the qualification criteria, the need for legal assistance, and the associated costs is crucial for making informed choices. While the costs of bankruptcy can be substantial, the benefits of a fresh financial start often outweigh the expenses. Consulting with an experienced bankruptcy attorney in Honolulu is the first step in navigating this complex process and securing a brighter financial future.

Reliable Bankruptcy Attorneys in Honolulu, HI

Below is a list of reputable bankruptcy attorneys in Honolulu, HI. 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

Honolulu, HI Zip Codes We Proudly Serve:

96813, 96814, 96815, 96816, 96817, 96818, 96819

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