Filing Chapter 13 in Hawaii also has some advantages. With Chapter 13 bankruptcy there is a payment plan that enables you to keep your property, there are more dischargeable debts, more payment time and it separates creditors by class.
Chapter 13 Bankruptcy in Hawaii
You may not be able to file Chapter 7 in Hawaii. You have to measure your "current monthly income" against the median income of a family your size in Hawaii. Your "current monthly income" is your average income for the last six months before you file Chapter 7. You are eligible to file Chapter 7 if your income is equal or less than the median.
If your income is higher than the median for Hawaii, you may still be able to file Chapter 7. To do so, you have to pass "the means test". The purpose of this test is to see if you have enough disposable income, after subtracting certain required debt payments and allowed expenses, to repay at least a portion of your unsecured debts over a five-year repayment period. If you do, you cannot file Chapter 7. You will have to file Chapter 13 Bankruptcy.
More Help on Filing Chapter 13 Bankruptcy in Hawaii
- Filing Chapter 7 Bankruptcy in Hawaii - In Hawaii bankruptcy law, filing Chapter 7 has certain advantages. Some of these are immediate protection, a complete fresh start, lack of a minimum limit on the debt, and quick discharge of your case. - read more
- Hawaii Bankruptcy Information - You may have reached a point where it is impossible to pay your debtors. Filing bankruptcy in Hawaii might be one of your best options. - read more