Best Lawyers in Hawaii, United States for Bankruptcy and Creditor Debtor Rights / Insolvency and Reorganization Law
Practice Area Overview
Living in Hawaii can present its challenges. With high living costs, seasonal profits and expensive business overhead, it can be tricky to navigate finances. When things go awry, it is important to have legal support to back you up.
Bankruptcy lawyers in Hawaii help individuals and local businesses manage debt, protect assets and work towards a fresh start in the challenging economic landscape.
What Does a Bankruptcy Lawyer Do in Hawaii?
Bankruptcy lawyers in Hawaii take care of a multitude of tasks for personal and business cases. They can:
- Offer Finacial Advice and Assess Situations
- Breakdown Bankruptcy Options (Chapter 7, Chapter 11, Chapter 13) for their client
- File bankruptcy petitions with the U.S. Bankruptcy Court, District of Hawaii
- Represent clients in creditor meetings and court proceedings
- Protect individuals' assets utilizing Hawaiian exemptions
- Help clients move forward by rebuilding credit, discussing ways to cancel debt and so on
- Ensure all Hawaiian regulations and laws are followed
- Handle both personal bankruptcy cases and business insolvency cases
Hawaii’s Bankruptcy Exemptions
Hiring a bankruptcy attorney in Hawaii is crucial, especially when it comes to the state’s unique exemption rules. These differ from federal asset protections because Hawaii requires its residents to use state exemptions. These state protections are used to help debtors protect assets from pay creditors or reduce the amount of repayment needed. Hawaii's state specific exemptions include:
Homestead Exemption
Debtors receive between $30,000-$45,000 depending on age in equity for their homes as long as it is their primary residence. If a couple is married and both have interest in the home, then they can double the exemption.
Often Hawaiian bankruptcy attorneys will utilize the combining of exemptions in order to get the most money possible. With Hawaii's high real estate costs, the exemption rate is moderately low. Making it imperative to hire an attorney who can help you create a plan.
Income Exemptions
In an attempt to protect seasonal workers Hawaii allows for eighty percent of wages earned but not paid during the time of filing for bankruptcy to be protected or two hundred dollars each month depending on which of the two is a greater sum. Hawaii also allows one thousand dollars of unpaid commission to be kept by salespeople.
Retirement Exemptions
In accordance with the Employee Retirement Income Security Act of 1974 (ERISA), most retirement plans such as 401(k) and Individual Retirement Accounts (IRA) are fully exempt.
Benefit Exemptions
Unemployment workers’ compensation and public assistance benefits are completely exempt. Payments from life insurance policy to beneficiary are exempt as well as nonprofit organizations insurance.
When to See a Bankruptcy Lawyer in Hawaii
When trying to decide if you need a bankruptcy lawyer in Hawaii, it is important to note the signs of crumbling finances for both personal and business cases to get timely legal help.
Personal Cases
The signs that you may need legal bankruptcy protection for personal cases include:
- You are unable to pay your debt (credit cards, student loans, etc.)
- You’ve received foreclosure threats on your home
- Most of your income relies on seasonal work and tourism
- Your wages have been frozen
- Death marriage etc. In the family causing over expenditures and late debt payments
Chapter 7 – Liquidation
Filing under chapter seven means that everything not protected under exemptions is sold to creditors. This will offer fast relief but puts unprotected assets at risk of loss.
Chapter 13 – Repayment
Filing under chapter thirteen is a reorganization of assets focused on a repayment plan. This will not provide fast relief but will give opportunities to save assets such as homes and personal assets.
Business Insolvency Cases
The signs that you may need lawyers that handle bankruptcy for business insolvency cases include:
- Having outstanding debt (vendor payments, loans, leases)
- Vendors or lenders threatening lawsuits
- Inability to pay your employees or taxes
- Reliance on seasonal business or tourism months
Chapter 7 – Liquidation
Filing under chapter seven means the closure of your business. Anything not protected under exemptions will be liquidated and paid to creditors.
Chapter 11 – Business Repayment
Filing under chapter eleven is a reorganization of a business's assets. This will reorganize debts while still allowing businesses to operate. This is costly but will save viable businesses.
What Happens to You When You File for Bankruptcy in Hawaii?
When filing for bankruptcy in Hawaii, it can provide instant relief to those struggling with overwhelming debt. There are certain steps taken to ensure that the filing process goes smoothly. These are easily done by bankruptcy attorneys in Hawaii who guide you through each phase. The main steps taken include:
- Automatic Stay: Will halt foreclosures lawsuits and creditor actions upon filing for bankruptcy.
- Credit Impact: Bankruptcy will remain on your credit report for seven to ten years depending on which chapter you file under.
- Court Process: When you file for bankruptcy with the U.S. Bankruptcy Court District of Hawaii you will be given a trustee who will monitor your case in the Honolulu Bankruptcy Court. You will then be required to sign financial disclosures and attend a creditor meeting.
When filing, you should seek legal consulting to decide which chapter to file under. There are pros and cons to each whether you're a business or an individual. Chapter seven provides immediate relief and chapter eleven for business and chapter thirteen for individuals allows repayment plans to be put into place. It’s best to consult with a Hawaii bankruptcy attorney to discuss your options to achieve financial recovery.
Will Bankruptcy Take My Assets?
Whether or not bankruptcy takes up your assets depends on which chapter you file under and which exemptions you apply for. A Hawaiian bankruptcy attorney can give guidance to decide which chapter is best for you to protect assets in a high-cost state.
Creditor-Debtor Rights & Business Reorganization in Hawaii
While some clients file for bankruptcy, others don’t and instead need debt restructuring or creditor negotiation. In this case you would hire a creditor-debtor rights lawyer in Hawaii who would represent both the debtor and the creditor. If you were seeking this form of conflict resolution you might hire a creditor-debtor rights attorney if needing:
- Protection from creditors’ claims
- Negotiation regarding a payment plan
- Representation of your business aiming to reorganize and stay open (largely applies to seasonal businesses and retail stores)
Legal protection can help prevent litigation and find fair resolutions that both parties agree upon. Hawaii bankruptcies are no laughing matter and should be taken care of by lawyers that handle bankruptcies to navigate the state’s unique economic challenges.
How to File for Bankruptcy in Hawaii
Filing for bankruptcy is an important step towards financial growth in Hawaii’s costly economy. In order to file you should:
- Find and consult a trusted bankruptcy lawyer in Hawaii
- Choose a chapter to file under based off of legal guidance
- Finish required financial disclosure agreements
- Gather financial information and file with the U.S. Bankruptcy Court District of Hawaii
- Complete creditor meetings
- Use exemptions as guided by your lawyer
With all the steps required to protect you, your personal property and your business, it is important to seek legal help to ensure a smooth process.
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Mr. Klevansky’s practice emphasizes commercial law, business litigation, bankruptcy law and reorganization, fraudulent transfers, and creditors’ rights. He counsels corporate and individual clients related to collection and payment of secured and unsecured claims and judgments, foreclosures and other post-judgment remedies through litigation, arbitration and less formal proceedings. Mr. Klevansky graduated magna cum laude from the University of Pennsylvania, earning a Bachelor's o...
Ms. Piper’s practice emphasizes business litigation, business bankruptcy law, creditor’s rights, and collections. She counsels a variety of corporate and individual clients on matters related to debt collection, foreclosures, lien rights, debt restructuring, and other financial matters. She is experienced in representing clients in litigation, arbitration and out-of-court settlements.
Tom E. Roesser chairs the firm's Bankruptcy & Creditors Rights Practice Group. Mr. Roesser concentrates on advising financial institutions on problem loans, including loan workouts and foreclosures, bankruptcy, and lender liability issues. He served as President of the Bankruptcy Law Section of the Hawai`i State Bar Association in 2005 and is also a member of the American Bankruptcy Institute and the Business Law Section of the American Bar Association. He also concentrates in commercial ...
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