Bankruptcy Can Stop Wage Garnishment, Foreclosure, and Collection Calls in Hawaiʻi

Yes. Federal student loans can sometimes be discharged in a Hawaiʻi bankruptcy. They can be discharged if you prove that repayment would be an undue hardship, which requires filing a separate lawsuit within your bankruptcy called an adversary proceeding. A 2022 Department of Justice process made these cases far more realistic to file. Almost no one in Hawaiʻi has pursued this, and I am now taking these cases.

No. My practice is federal student loans, where a Department of Justice process can resolve many of these cases without a trial. I do not handle private student loan discharge.

No. Most people who file keep everything they own. Hawaiʻi and federal exemption laws protect your home equity, your car, your retirement accounts, and your everyday belongings, each up to limits set by law. The large majority of consumer cases are no-asset cases, which means the trustee takes nothing and you still receive your discharge.

Bankruptcy has two costs: the court filing fee and the attorney fee. I offer flat fees when I can and affordable payment plans, and I explain how the fee works at a free consultation, before you commit. My guide to what bankruptcy costs in Hawaiʻi breaks down both fees.

Yes. Older income taxes can often be discharged in bankruptcy if they meet timing rules. Trust fund payroll taxes and recent income taxes cannot be discharged, but a Chapter 13 plan can let you repay those over three to five years, often without continued penalties.

Whether you should file Chapter 7 or Chapter 13 depends on your income, your expenses, your property, and your goals. Chapter 7 erases most unsecured debt in a few months and is the right tool for many people. Chapter 13 is a three to five year repayment plan used to stop foreclosure, repay recent taxes, or handle debts that Chapter 7 cannot. It does require your secured and unsecured debts to fall under specific statutory limits. I will tell you which one fits after we look at your situation together.

Yes. The automatic stay stops foreclosures, wage garnishments (other than for child support and alimony), bank levies, and debt-collection lawsuits as soon as I file your bankruptcy. Chapter 13 can also let you catch up on missed mortgage payments over time to save your home.

No. For most people it is the start of rebuilding, not the end. Filing does lower your score at first, but it also erases the debt that has been dragging your credit down. Many people see real improvement within twelve to twenty-four months. Every client I represent also gets the 720 CreditScore program to help rebuild it.

Unlikely. A bankruptcy is a public court record, but in practice few people ever find out. Your employer is not told unless it is already garnishing your wages, your friends and neighbors are not notified, and formal notice goes to the creditors you list, the trustee, and the court. For nearly all of my clients, filing stays private.

Most likely not. Your only required appearance is a short meeting with a bankruptcy trustee, not a judge, held by Zoom video. It usually lasts about ten minutes, and I am there with you the whole time.

A typical Chapter 7 case takes about four to six months from filing to discharge. Chapter 13 runs longer, three to five years, because it is a repayment plan. Either way, the protection from collection begins the moment I file your case.

Yes. I represent clients on every Hawaiian island. I meet by phone or video, so you do not need to travel to Honolulu to work with me.