Chapter 13 Bankruptcy

Honolulu Chapter 13 Bankruptcy

Considering Chapter 13 Bankruptcy in Hawaii? Our Firm Can Help

Honolulu Bankruptcy Attorneys Experienced in Chapter 13 Bankruptcy

Chapter 13 bankruptcy allows a debtor to use his income to pay some or all of what he owes his creditors over three to five years, depending upon the amount of debt and income. In return for adhering to his repayment plan, a debtor may be allowed to keep valuable non-exempt property.

Who is Eligible for Chapter 13 Bankruptcy?

Only individuals with regular income are eligible to file for chapter 13 bankruptcy. Regular income includes wages or commission earned through employment, but does not include overtime, bonuses, occasional income, or child support payments. A debtor must also have less than $383,175 in unsecured debt and $1,149,525 in secured debt to qualify for chapter 13.

How Does Chapter 13 Work?

When a debtor files for chapter 13 bankruptcy, he usually proposes a three to five year repayment plan that must be approved by the bankruptcy court. The repayment plan offers to pay off all or part of his debt with future income. Chapter 13 bankruptcy can be used to:

  • Prevent a home foreclosure
  • Catch up missed car or mortgage payments
  • Restructure a car loan
  • Pay back taxes
  • Stop interest from accruing on your tax debt
  • Retain valuable non-exempt property

If you stick to the terms of your repayment plan, all your remaining dischargeable debt will be erased at the end of the plan. The amount that the debtor will be required to repay is determined by various factors, including:

  • The debtor's monthly income
  • The amount of the debtor's income that is considered disposable, or the difference between monthly earnings and the amount reasonably expended for a family's maintenance and support
  • How much money is needed to cover administrative expenses and cure secured debt obligations
  • The value of any non-exempt assets

Should I File for Chapter 13 Bankruptcy in Hawaii?

If you are thinking of filing for chapter 13 bankruptcy in Hawaii, The Law Office of Jean Christensen LLLC can help you make the right decision based upon your unique financial situation. We offer free initial consultations – contact our firm online or call 808-521-1202 to schedule yours at our Honolulu office today.