Debtor

• Where can I get more information about bankruptcy?

  Read the publication Bankruptcy Basics and watch the Bankruptcy Basics Video in the section Filing Without an Attorney. Forms to file for bankruptcy can be downloaded from the Forms section of this website or obtained at the Clerk's Office. Important! The staff of the bankruptcy court are not allowed to give you legal or financial advice. For example, we cannot tell you what bankruptcy chapter you should file under, whether or not a particular debt will be discharged, whether the court has jurisdiction over something, what actions you should take, and who needs to receive notice or service.

• What chapter should I file under?

  Review the information about the different chapters in Bankruptcy Basics. Which chapter is best for you depends on your particular circumstances - you should get an opinion from an attorney familiar with bankruptcy law. However, most individual consumer debtors file under Chapter 7 or Chapter 13.

  Chapter 7 liquidation is designed for debtors in financial difficulty who do not have the ability to pay their existing debts. If your debts are primarily consumer debts, you are subject to a “means test” to determine whether your case should be permitted to proceed under Chapter 7. In Chapter 7, you may claim certain of your property as exempt under governing law. A trustee may have the right to take possession of and sell the remaining property that is not exempt and use the sale proceeds to pay your creditors. The purpose of filing a Chapter 7 case is to obtain a discharge of your existing debts. But even if you receive a general discharge, some particular debts are not discharged under the law. Therefore, you may still be responsible for most taxes and student loans; debts incurred to pay nondischargeable taxes; domestic support and property settlement obligations; most fines, penalties, forfeitures, and criminal restitution obligations; and certain debts which are not properly listed in your bankruptcy papers.

  Chapter 13 repayment is designed for individuals with regular income who would like to pay all or part of their debts in installments over a period of time. You are only eligible for Chapter 13 if your debts do not exceed certain dollar amounts set forth in the Bankruptcy Code. Under Chapter 13, you must file a plan to repay your creditors all or part of the money that you owe them, using your future earnings. The period allowed by the court to repay your debts may be 3 years or 5 years, depending upon your income and other factors. The court must approve your plan before it can take effect. After completing the payments under your plan, your debts are generally discharged except for domestic support obligations; most student loans; certain taxes; most criminal fines and restitution obligations; certain debts which are not properly listed in your bankruptcy papers; certain debts for acts that caused death or personal injury; and certain long term secured obligations.

• Do I need an attorney to file my bankruptcy case?

  No, individuals can file without an attorney; this is sometimes called filing “pro se.” But bankruptcy cases can be complicated and many pro se cases are not successful. Please review the information under Filing Without an Attorney.

• Can someone at the court recommend a bankruptcy lawyer?

  The court is prohibited from recommending any individual attorneys. However, you may click here for a list of members of the Hawaii Bankruptcy Bar Association, who specialize in bankruptcy matters.

• What if I can't afford an attorney?

  Persons with low incomes may qualify for help from Legal Aid Society of Hawaii or Volunteer Legal Services Hawai`i.

  The Legal Aid Society of Hawaii (legalaidhawaii.org) is a public interest, not-for-profit law firm whose mission is to achieve fairness and justice through legal advocacy, outreach and education for those in need. Services include a monthly bankruptcy pro se clinic. Due to budgetary restrictions, Legal Aid currently only offers bankruptcy services to Oahu residents. Individuals may call LASH’s intake line at (808) 536-4302 to find out if they qualify for legal assistance.

  Volunteer Legal Services Hawai`i (vlsh.org) is a non-profit organization that recruits volunteer attorneys to assist individuals with Chapter 7 bankruptcy and other civil legal matters. Services include advice and counsel clinics and self-help workshops. Individuals may call Volunteer Legal’s intake line at (808) 528-7026 to find out if they qualify for Volunteer Legal’s services.

• How may a bankruptcy petition preparer help me?

  A bankruptcy petition preparer is an individual or a firm that can provide the forms for filing a bankruptcy case and can type in the information. A bankruptcy petition preparer is not authorized to give you any legal advice, e.g., whether you should file under chapter 7 or chapter 13, or claim exemptions under state law or federal law. Someone who gives unauthorized legal advice may be sanctioned by the court. If a bankruptcy petition preparer helps you with the forms, he or she must also sign certain sections of the documents and must file a statement disclosing how much money you have paid for the preparer’s services.

• How much does it cost to file for bankruptcy and what if I don't have enough money to pay the filing fee?

  The filing fee depends on what chapter under which you file. Click this link for information about Filing Fees.

  In Chapter 7, you may file an Application for a Fee Waiver or an Application to Pay Filing Fee in Installments. There is a strict income qualification set by law for a full waiver. In addition, the judge must decide that you are not able to pay in installments. If the judge denies your application, you will be required to pay the filing fee in installments. In Chapter 7, an application to pay in installments generally is approved so long as your final installment is payable within 120 days after you file your petition.

  Installment payments in Chapters 11, 12, and 13 are disfavored. If you do request payment in installments, the court generally will order you to pay the filing fee in full within 14 days after you file your petition.

• What documents do I need for the court to open a bankruptcy case for me?

  See the lists of forms to file under the tab Filing Without an Attorney: Chapter 7 Filing Requirements and Chapter 13 Filing Requirements. Some documents may be filed within 14 days after the bankruptcy petition is filed. However, at a minimum you must submit the following for the court to open your case.

  • Petition (Official Form 101) with an original signature
  • Statement of Social Security Number (Official Form 121) with an original signature
  • Creditor List (names and addresses of all creditors to be listed in your bankruptcy schedules) and verification with original signature; submit both a list on paper and as a .txt file on a CD or USB drive
  • Filing Fee, or Fee Installment Application, or Application for Chapter 7 Fee Waiver

  Note: You should provide a comprehensive list of your creditors with your petition. If you submit your schedules later that contain additional creditors and parties in interest, you will need to amend your creditor list and pay an amendment fee of $32.

• I'm married - Does my spouse need to be included in my bankruptcy?

  No. Married individuals may file a "joint" petition but one spouse may file alone. However, information about assets and wages of the non-filing spouse must appear in your statements and schedules to give the court a complete picture of your financial situation.

• Is Hawaii the proper district for filing my petition?

  The proper location for filing a bankruptcy petition is set forth in 28 U.S.C. § 1408. Make the appropriate selection on Page 2 of the petition form.

• What is the requirement for credit counseling?

  The Bankruptcy Code requires that individuals obtain credit counseling in the 180-day period BEFORE filing a bankruptcy petition. You may file the petition before filing the certificate that will be issued by the credit counseling agency, but you must file it within 14 days after you file your petition. Click this link for more information about Credit Counseling. Note: after you file, you will need to take a separate course, Debtor Education, before being issued a discharge.

• Are there any exceptions to the credit counseling requirement?

  Yes, but they are very limited. A debtor may request a total exemption from the credit counseling requirement based only on the circumstances below. The request must be made by filing a Motion for Waiver of Credit Counseling/Debtor Education.

  • Incapacity where the person is so impaired by reason of mental illness or deficiency that the individual is inacapable of making rational decisions with respect to financial responsibilities;
  • Disability where the person is so physically impaired that the individual cannot, after reasonable effort, participate in an in-person, telephonic, or Internet briefing; or
  • Active duty in a military combat zone.

  You may also request a temporary waiver if there are exigent circumstances that prevent you from obtaining prebankruptcy credit counseling within 7 days after requesting the counseling. You must select the appropriate box in Part 5 of the petition and attach a separate sheet explaining what efforts you made to obtain the counseling, why you were unable to obtain it before you filed for bankruptcy, and what circumstances required you to file the case before obtaining the counseling. If the court approves this temporary waiver, you must get the credit counseling within 30 days after filing the petition. If the court denies the waiver, your case is subject to dismissal.

• What is the difference between credit counseling and debtor education?

  Individuals must obtain credit counseling in the 180-day period BEFORE filing a bankruptcy petition. A debtor education course (also known as a course in personal financial management) must be completed AFTER the petition has been filed. If you fail to obtain the credit counseling, your case may be dismissed. If you fail to complete a debtor education course, your case will be closed without a discharge. If your case is closed without a discharge and you later wish to submit a debtor education certificate, you will need to file a motion to reopen your case and pay a fee ($260 for Chapter 7, $235 for Chapter 13) before the court will issue you a discharge.

• How may I request more time to complete my bankruptcy schedules and statements?

  You must file a Debtor’s Motion to Extend Time to File Case Opening Documents. File it before the original deadline expires, i.e. 14 days after the date you filed the petition.

• Can I amend schedules, the statement of financial affairs, or my creditor list? Is there a filing fee?

  Yes - you are required to amend these if you need to add creditors or update or correct information in what you originally filed. There is an amendment fee if you file an amended creditor list or amended schedules D or E/F. If you add creditors, you must send them a copy of the notice of your bankruptcy case, and file a certificate of service that you did so. For detailed information, see the Amending Schedules & Creditor Lists section under Filing Without an Attorney.

• How can I reinstate my case that was dismissed for missing schedules or other documents or because I did not pay the filing fee?

  First, make sure you file all the missing documents and pay any balance due on the fee. If you have satisfied all deficiencies, you may use a form Debtor’s Motion to Reconsider Order Dismissing Case. This should be filed within 14 days after the court enters the dismissal order.

• What happens at a meeting of creditors?

  At the meeting of creditors or “341” meeting (named that because the meeting is required under § 341 of the Bankruptcy Code), the debtor is questioned under oath by a trustee. Creditors are also given an opportunity to question the debtor. In a joint case, both spouses must appear. Failure to appear may result in dismissal of the case. Click here for more information. 

• Where are meetings of creditors held?

  Meetings of creditors are being held by Zoom video. Click here for Zoom Meeting IDs, Passcodes, and dedicated phone numbers for each trustee.

• How can I request a different date or time for my meeting of creditors?

  As of July 2023, meeting locations are no longer assigned by the debtor’s county of residence or principal place of business. Pursuant to Bankruptcy Rule 2003(a), § 341 meetings in chapter 7 cases will be scheduled between 21 and 40 days after the petition is filed; meetings in chapter 13 cases will be scheduled between 21 and 50 days after the petition is filed. For a change in date or time, contact the individual trustee appointed in your case. If a change is approved, it will be your responsibility to send a notice of the change to all creditors and parties in interest in your case.

• What is the automatic stay?

  The filing of a bankruptcy petition operates as a “stay” which prohibits starting or continuing certain actions against the debtor and property of the bankruptcy estate, such as collection actions, foreclosures, and evictions. (Note: If you are involved in an action in another federal or state court, the local rules require you to give notice to the clerk of that court and the other parties.) A creditor may seek “relief from stay” by filing a motion and obtaining an order from the judge “lifting” the stay so the creditor may proceed. The judge will likely grant the motion if you do not file a timely opposition.

• What is a discharge and when will I get it?

  A bankruptcy discharge releases a debtor from personal liability for certain specified types of debts. In other words, you are no longer legally required to pay any debts that are discharged. The discharge is a permanent order prohibiting the creditors from taking any form of collection action on discharged debts, including legal action and communications with the debtor, such as telephone calls, letters, and personal contacts. This is called the "discharge injunction." Although a debtor is not personally liable for discharged debts, a valid lien (i.e., a charge upon specific property to secure payment of a debt) that has not been avoided (i.e., made unenforceable) in the bankruptcy case will remain after the bankruptcy case. Therefore, a secured creditor may enforce the lien to recover the property secured by the lien. In a typical Chapter 7 case where no objections to discharge are filed, the court may issue a discharge approximately 60 days after the meeting of creditors, or about 90 days after the filing of the petition. A discharge in a Chapter 13 case will not be issued until all plan payments have been made - plans may last up to 5 years. Note that other requirements may apply, such as the need to complete a debtor education course and be current on domestic support obligations.

• Does a discharge cover all my debts?

  You should read the section about discharges in Bankruptcy Basics and consult an attorney familiar with bankruptcy. The Clerk’s Office cannot give you any legal advice, including whether a particular debt has been discharged.

• What is a reaffirmation agreement and why should I sign one?

  A reaffirmation agreement is a voluntary agreement between the debtor and a creditor whereby a debtor becomes legally obligated to pay all or a portion of a debt that otherwise would be discharged. You should consult an attorney familiar with bankruptcy law as to whether or not you should reaffirm a debt based on your particular situation. In certain circumstances, you may also need the court to approve the agreement. For more information about reaffirmation agreements, click here.

• How can I convert my case to another chapter?

  You need to file a motion and you may need to pay a filing fee. Some form motions are available: Chapter 7 Debtor’s Motion and Notice of Conversion of Case to Another Chapter and Chapter 13 Debtor’s Notice of Conversion of Case to Chapter 7.

• How can I voluntarily dismiss my case?

  You must file a motion to dismiss and a hearing may or may not be required. Some form motions are available: Debtor’s Motion to Dismiss Chapter 7 Case and Debtor’s Motion to Dismiss Chapter 13 Case. Note that if you voluntarily dismiss your case after a motion for relief from the automatic stay has been filed, you may be ineligible to file another bankrupcty petition for 180 days.

• How long does a Chapter 7 case usually last?

  A typical Chapter 7 consumer case where there are no assets and no objections to discharge, adversary proceedings, or other motions to resolve generally is closed within 4 - 6 months after the petition is filed. However, if there are assets for the trustee to liquidate and make distributions to creditors, a case may last years.

• What is the difference between a secured, unsecured, and priority debt?

  A secured debt is a debt that is backed by a mortgage, pledge of collateral, or other lien, including a properly recorded judgment lien. It is a debt for which the creditor has the right to pursue specific pledged property upon default. Typically, things like a car or a house are used as collateral to secure consumer loans. If you have simply promised to pay someone a sum of money at a particular time and have not pledged any property, it is an unsecured debt. This may include a judgment that is not secured by a lien. Typically, things like medical bills and gas or electric bills are unsecured debts. Certain types of unsecured debts are entitled to priority under the Bankruptcy Code and are entitled to be paid ahead of other unsecured debts. Examples of priority debts are some taxes, wage claims of employees, and domestic support obligations such as alimony and child support.

• If I think something is not being done correctly by the trustee in a case in which I am involved, to whom may I complain?

  Questions concerning individual trustees should be addressed to the Office of the U.S. Trustee. Note: If you are a debtor or another party in a case and are represented by an attorney, the U.S. Trustee's staff may only communicate with your attorney.

• What documents should I keep for my records?

  You may wish to keep copies of all documents filed in your case. At a minimum, you should retain copies of your petition, schedules, statements, and creditor list, as well as your discharge and any orders issued in your case.

• How may I get another copy of my discharge?

  You should save a copy of your discharge when it is mailed to you by the court. If you need another copy later, you may print a copy using PACER, the federal judiciary’s online system for viewing case records. You may also visit or contact the Clerk’s Office for a copy. Send an email request to copies@hib.uscourts.gov. 

• How long does information about my bankruptcy filing stay on my credit report?

  The Fair Credit Reporting Act generally requires Information about a bankruptcy case to be excluded 10 years after the date the bankruptcy was filed. See 11 U.S.C. § 1681c. As a matter of policy, a credit reporting agency may remove bankruptcy information after 7 years if it was a case under chapter 13 where a discharge was issued. You should check with the major credit reporting agencies about their policies: equifax.com, experian.com, transunion.com.

  Note: The court does not provide any information or verification to the credit reporting agencies. Those agencies obtain information from public records such as PACER.

• What can I do if my credit report incorrectly shows a bankruptcy case that is not mine?

  You should contact the individual credit reporting agency (equifax.com, experian.com, transunion.com) to dispute your report. Data about bankruptcy cases is a matter of public record and the credit reporting agencies search these records for their reports. The bankruptcy court does not directly provide any information to the agencies and has no control over credit reports. However, you may request that the court send you information about the bankruptcy case appearing in your report to assist in resolving any dispute.

• I think my lawyer acted improperly - to whom may I complain?

  Allegations that an attorney licensed in Hawaii has violated the rules of professional conduct should be brought to the attention of the Office of Disciplinary Counsel, 201 Merchant Street, Suite 1600, Honolulu, HI 96813; Phone: (808) 521-4591.