FAQs Archive - Square One Legal

Q: How can bankruptcy help?

The word might seem scary, but bankruptcy can be a good thing. Protecting you from creditors can help reduce stress and allow you to make calmer financial decisions, but it can also eliminate debts that feel impossible to pay off. It can be a good place to start rebuilding credit and can protect your living situation by allowing you to keep things you need to survive, like a place to live and income you need to live on! While it may not discharge all your debts, it can negotiate easier terms and make your financial future more manageable. Talk to a bankruptcy lawyer today to consider if it’s the right action for you.

Q: I need debt relief advice, where do I start?

The best place to start is by talking to a professional . It can seem like a good start to search online for answers, but different sources may tell you, or imply several things, and it can make the process more overwhelming. Keep it simple by talking to a professional who will give you the right advice for your circumstances. We offer free initial consultations by phone wherever you are in Hawaii with no strings attached. You don’t need to be applying for bankruptcy to talk to a bankruptcy lawyer, often they can guide you towards the right steps for you, and help you navigate your own path towards your debt relief goals.

Q: Do you offer free consultations?

Yes, we do! Wherever you are in Hawaii, our firm provides free initial consultations regardless of your situation. We know that weighing your options is very important, but big decisions shouldn’t cost you when you need to be tender with your finances. You can’t afford to not take advantage of a free consultation .

Q: My debt situation doesn’t seem to match with the options available… What should I do?

The best option is always to talk to a professional . Your situation is unique to you, and online answers aren’t always as helpful as they seem. A bankruptcy lawyer or attorney proficient in the laws of their region will be able to tell you what options are available to you and where the best place is to start. Take advantage of our offer for free initial consultations in Hawaii with no commitment required. The best place to start is getting answers from the professionals!

Q: Do I qualify for Chapter 7 Bankruptcy?

To qualify for Chapter 7 in Hawaii, your household income from all sources should be below the threshold (determined by Hawaii’s median household income) for the number of people living in your household. If your household income is above the threshold, you may still qualify for Chapter 7 if you pass the “Means-Test” (a complicated calculation of your household expenses). Getting the qualification right before filing Chapter 7 is essential, therefore, you should contact our office to schedule a free attorney consultation to find out whether you qualify.

Q: How can I avoid foreclosure?

You have three ways to deal with foreclosure. First, catch up on payment in full, which is usually easier said than done. Second, hire an attorney to defend you in the foreclosure case. That's a good option if you have a strong case for wrongful foreclosure or wrongdoing on the part of the lender, or when the mortgage balance exceeds the property value and you apply for a loan modification, or if you plan to sell the house within a few months and want to complete a non-distressed sale. Third, file Chapter 13 bankruptcy that stays the foreclosure proceeding (pauses the proceeding) while you either repay your arrears (back payments) over five years (in addition to your ongoing regular payments, or sell the house, or apply for a loan modification (usually effective for 6-12 months). The bankruptcy option is usually considerably less costly than foreclosure defense. Therefore, it should be the preferred method when there's a lot of equity in your property and the foreclosure is due to non-payments and not mortgage lender’s fraud or wrongdoing. There's no one-size-fits-all solution, and your best option is to talk to a professional who specializes in the laws governing your state. If you live in Hawaii, we offer free consultations in Honolulu , or over the phone if you can't travel.

Q: Is going to court part of the bankruptcy process?

Most likely not. Court appearances in front of a judge are rare and usually only happen in very complex cases your attorney should be able to anticipate. While official processes can seem frightening, our bankruptcy lawyers and attorneys are there to help and guide you. You must attend a meeting with the person assigned to administer your case (Trustee), but not in court and not in front of a judge. At the meeting, you will be required to answer questions under oath but won't need to dress formally, and our attorney will prepare you for the meeting and attend it with you. The meeting usually takes about 5-10 minutes to complete. For more information, book a free consultation with our Honolulu bankruptcy experts to better understand what's required for your circumstances.