FAQs Archive - Square One Legal

How can bankruptcy help?

S1L — Thu, 27 Jan 2022 04:09:04 +0000

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.

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Should I talk to a lawyer or a debt relief agency?

S1L — Thu, 27 Jan 2022 04:07:45 +0000

Caution is advised when making big decisions, and while debt relief agencies may appear to have the “quicker and easier” options, these may cost you financially in the future. Financial problems often stem from long-term problems, and short-term solutions can be like putting a band-aid on a broken arm; it looks like you’re doing something, but it’s not actually helping you heal.

Lawyers and bankruptcy attorneys often offer free initial consultations (like us) where you can get a full perspective on your financial options, and what the long-term cost will be. Urgency shouldn’t cost you money, so make sure you weigh your options before making any big decisions.

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I need debt relief advice, where do I start?

S1L — Thu, 27 Jan 2022 04:06:33 +0000

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.

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Do you offer free consultations?

S1L — Thu, 27 Jan 2022 04:05:18 +0000

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.

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

S1L — Thu, 27 Jan 2022 04:03:41 +0000

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!

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How do I get rid of debt without losing my house?

S1L — Thu, 27 Jan 2022 04:02:10 +0000

Bankruptcy is usually the most effective way to discharge your debt and protect your home, so long as you do it the right way. Do it the wrong way, and you risk losing your home.

First, you need to determine how much equity you have in the property, which is the property’s value minus all the obligations/liens against the property (common obligations are mortgage, HELOC, tax or judgment liens, etc.).

Second, if there’s no equity or minimal equity, Chapter 7 bankruptcy (if you qualify), may be safe to file without the risk of losing your house. If you have a lot of equity, you should consult with your attorney to determine whether you can exempt (protect) the equity in bankruptcy. If the answer is yes, you should discuss the option of filing chapter 7 or 13 with your bankruptcy attorney.

If you can’t protect the equity in your property in bankruptcy, you may be able to file chapter 13 bankruptcy to repay part of your debt at 0% interest or prefer to settle with your creditors outside bankruptcy.

For the best advice on your options in Hawaii, schedule a free consultation with our Honolulu firm in person or over the phone.

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Do I qualify for Chapter 7 Bankruptcy?

S1L — Thu, 27 Jan 2022 03:56:19 +0000

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.

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My house is being foreclosed… What should I do?

S1L — Thu, 27 Jan 2022 03:55:04 +0000

Call us right away. Most foreclosures in Hawaii are handled by the courts (judicial foreclosures). Your mortgage lender or Homeowners Association must provide a minimum 30-day notice of foreclosure to allow you to cure/repay your back payments (arrears). If you don’t cure the arrears, your mortgage company files a Complaint, and you must file an Answer within 20 days of service to avoid a default judgment against you. After you file an Answer, your case will go through discovery that can take anywhere from a few months to possibly years (depending on how aggressive your lender is), and at some point, most lenders file a Motion for Summary Judgment (MSJ) to obtain a foreclosure judgment.

The MSJ is one of the key phases of the foreclosure process that will determine the length of the process and in turn how much leverage you have against the lender to get a preferable resolution. If you defeat the MSJ, the case will continue to Trial and possibly for another MSJ before Trial if the lender feels it has new information that may justify granting an MSJ.

Absent lender fraud or serious wrongdoing, your lender is more likely than not to win at Trial and obtain a judgment. After the judgment, the Court appoints a Commissioner to handle the foreclosure sale via Auction. At that point, the Commissioner will contact you to seek permission to conduct three open houses that you may refuse. If you refuse, the Commissioner will file a Motion to Permit Sale without Open Houses and will usually schedule the Auction sale for about 3-5 weeks after the Motion is granted.

After the Auction, the lender must file a Motion to Approve the Sale. If the Court approves the Motion to Approve Sale, the lender must prepare the Order Granting it and give you 5 days to respond to it. After that, the lender will send the Order to the Court for the Judge to Sign. The moment the Judge signs the Order granting the sale, you no longer own the property, and your only remedy is seeking damages against your mortgage lender for wrongful foreclosure.

Filing a Chapter 13 bankruptcy at any time before the Judge signs the written Order Granting the sale will stay (pause) the proceeding to give you some time to cure the arrears via refinancing, loan modification, through a five-year repayment plan, or a non-distressed sale of the property. Foreclosure defense would usually buy you time too, but it is usually most effective before there’s a foreclosure judgment. For these reasons, it’s important to consult with an attorney as soon as possible. Ideally, before the Answer to the Complaint is due, and certainly at least 30 days before the MSJ hearing.

If you’re unsure what to do, schedule a free consultation right away. With phone consultation available, wherever you are in Hawaii, we can help get you on the right track.

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How can I avoid foreclosure?

S1L — Thu, 27 Jan 2022 03:47:23 +0000

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.

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Is going to court part of the bankruptcy process?

S1L — Thu, 27 Jan 2022 03:45:18 +0000

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.

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