Hawaii Bankruptcy Lawyers, Debt Relief

Find a Bankruptcy Lawyer in Hawaii with our debt relief directory and get a free BK evalution for a loan modification, chapter 7, 11, 13 or debt settlement that could lead to a fresh start. Find out from a local attorney if bankruptcy is the best for your situation.

Hawaii bankruptcy filings jumped 50 percent last month as consumers struggling with mortgage payments, rising gas prices and credit card debt sought protection from the court. There were 187 filings at U.S. Bankruptcy Court in Honolulu, nearly all chapter 7 and chapter 13 bankruptcy filings. The 50 percent spike from August 2007 was the sharpest increase this year. Hawaii pretty much does chapter 7 and chapter 13. Chap 11 BK there is very rare.

Hawaii has one bankruptcy district: the Hawaii Bankruptcy Court. This court serves the entire state of Hawaii. Bankruptcy provides debtors with a fresh start because bankruptcy protects consumers against lawsuit from creditors. The bankruptcy protection (automatic stay) doesn't start until you attend the mandatory credit counseling and file your case with the Court. Until then, creditors can attempt to collect on credit card debt and other debts you owe, including your mortgage. If you are facing a Hawaii foreclosure, that proceeding can still proceed.

I am in the U.S. Military. How will bankruptcy affect my security clearance?
According to the U.S. Army Judge Advocate General (JAG) website:

The status of your security clearance can be affected, but it is not automatic. The outcome depends on the circumstances that led up to the bankruptcy and a number of other factors, such as your job performance and relationship with your chain of command. The security section will weigh whether the bankruptcy was caused primarily by an unexpected event, such as medical bills following a serious accident, or by financial irresponsibility. The security section may also consider the recommendations and comments of your chain of command and co-workers. This is an issue that can be argued both ways, so as a practical matter, your security clearance probably should not be a significant factor in making your decision about whether to file bankruptcy. The amount of your unpaid debts, by itself, may jeopardize your clearance, even if you don't file bankruptcy. In that sense, not filing for bankruptcy may make you more of a security risk due to the size of your outstanding debts. By the same token, using a government-approved means of dealing with your debts may actually be viewed as an indication of financial responsibility. Eliminating your debts through bankruptcy may make you less of a security risk. There is no hard and fast answer here, with one exception: it never hurts to have a good reputation with your co-workers and your chain of command.

Avoiding Bankruptcy
Hawaii chapter 7 bankruptcy laws and Hawaii chapter 13 bankruptcy laws have changed the landscape of filing for bankruptcy. It is now more complicated and expensive to file for chapter 7 and chapter 13 bankruptcy. But, there are two aggressive, but effective ways of avoiding bankruptcy: loan modification and debt settlement. A debt settlement involves getting your creditors to agree to take less than what you owe as full payment for the debt. A loan modification involves negotiating with your mortgage lender for rates and terms that allow you to stay in the loan. Honolulu bankruptcy lawyers, Oahu bankruptcy attorneys, Maui bankruptcy lawyers and other Hawaii bankruptcy lawyers can help you determine the best option for your situation.