General

• What is the Bankruptcy Code?

  The Bankruptcy Code is the collection of statutory provisions that govern bankruptcy cases contained in title 11 of the United States Code in which individuals and businesses in financial difficulty may seek relief from their debts. In addition to the Code and other federal statutes that affect bankruptcy, the Federal Rules of Bankruptcy Procedure and Local Bankruptcy Rules apply.

• What are the different "Chapters" under the Bankruptcy Code?

  Note: The following are brief and very general summaries - numerous additional qualifications and conditions may apply.

  Chapter 7 is the "liquidation" chapter of the Bankruptcy Code and the most common one used by individuals, corporations, and limited liability companies. Under Chapter 7, a trustee is appointed to collect and sell ("liquidate") all property that is not exempt under federal or state law. Unless someone prevails on a formal objection to discharge, an individual debtor gets a discharge, which means the debtor does not have to pay certain types of debts. Corporations, partnerships, and limited liability companies do not get discharges.

  Chapter 9 is a chapter that may be used by municipalities - political subdivisions of a state such as a county or water district. However, state law must specifically provide that a municipality may file for bankruptcy under Chapter 9.

  Chapter 11 allows debtors - usually corporations or businesses - to stay in business through confirmation of a plan of reorganization. The plan must explain when and how much will be paid to various classes of creditors, who vote on whether or not the plan should be confirmed.

  Chapter 12 is used by individuals and businesses which qualify as a "family farmer" or "family fisherman" as those terms are defined in the Bankruptcy Code. A certain portion of the debtor's income must come from the operation of a farming or fishing business and there are also debt limits that apply. A Chapter 12 debtor proposes a plan to repay creditors from future income. If the court confirms a plan, the debtor will make periodic payments to a Chapter 12 trustee who will distribute the funds to creditors according to the terms of the plan.

  Chapter 13 allows individuals who have income and meet certain debt limits to propose a plan to repay creditors over time, usually 3 - 5 years. Creditors do not vote on the debtor's plan, but may file objections to it. A Chapter 13 debtor must begin making plan payments to a Chapter 13 trustee within 30 days after filing the petition. Once a plan is confirmed by the court, the trustee will make distributions to creditors. The debtor receives a discharge only after completing all the plan payments.

  Chapter 15 is for foreign debtors who have already filed for bankruptcy under the laws of another country.

• Is the bankruptcy court a federal or state court?

  Bankruptcy is part of federal law and the bankruptcy court is a unit of the U.S. District Court for the District of Hawaii. A bankruptcy petition can only be filed in the bankruptcy court, not in the state court.

• Does the court have offices or hold hearings on the Neighbor Islands?

  No. The Clerk’s Office and courtroom are in downtown Honolulu. All hearings are held there but you may participate by telephone or videoconference for a hearing held in Honolulu if you make arrangements in advance with the courtroom deputy. As of March, 2020, all hearings are being held telephonically and no advance request is necessary. The toll-free number is (866) 390-1828, access code: 3287676. Meetings of creditors - which are presided over by a trustee and are not court hearings before a judge -- are held in Hilo, Kahului, and Lihue.

• How is the bankruptcy court different from other courts?

  In contrast to civil actions in most courts where there is litigation between a plaintiff and a defendant, most cases in the bankruptcy court involve a debtor, creditors, and a trustee in the administration of a bankruptcy estate. Most, but not all, issues are resolved by way of motions and hearings rather than extended litigation involving trials. In addition, bankruptcy cases and proceedings are governed by the Federal Rules of Bankruptcy Procedure, which may vary from the Federal Rules of Civil Procedure. The bankruptcy court also does not typically hold jury trials. If a jury trial has been demanded, the action may be withdrawn for a jury trial in the U.S. District Court.

• What is a motion?

  A motion is a request for the court to issue an order to determine a matter. The person filing the request for the court to rule on something is a “movant” or the “moving party.” The party against whom the request is directed is a “respondent.” If you wish the court to take some action, you must file a motion - do not write a letter to the judge or call the judge’s chambers. Forms for some of the more common types of motions may be downloaded from the court’s website. The Federal Rules of Bankruptcy Procedure and the local bankruptcy rules may require that the motion be served on other parties in addition to the respondent.

• What is an adversary proceeding?

  An adversary proceeding is a lawsuit related to a bankruptcy case. Whereas a bankruptcy case involves a debtor and his/her creditors, an adversary proceeding involves a “plaintiff” who has filed a complaint, and a "defendant" who must file an “answer” to the complaint. If the defendant fails to file a timely answer, the plaintiff may be able to obtain a judgment by "default." While some matters are resolved quickly in a bankruptcy case through motions, some issues must be litigated in adversary proceedings, which may take months and even years. See Bankruptcy Rule 7001 for the types of actions that require an adversary proceeding.

• How can I get information about what I need to do in a bankruptcy case?

  For debtors and those who wish to file for bankruptcy, check the information posted under Filing Without an Attorney. Creditors should consult an attorney for advice. Also review the Local Bankruptcy Rules. You may contact the Clerk’s Office for general questions about forms and procedures. However, a clerk is prohibited from giving you any legal advice or offering a legal opinion. For example, a clerk may not tell you if a particular debt has been discharged. Bankruptcy issues can be very complicated - whether you are a debtor or a creditor you should consult an attorney familiar with bankruptcy law and procedures.

• Can someone at the court recommend a good bankruptcy lawyer?

  The court is prohibited from making any recommendations. Click here for a list of members of the Hawaii Bankruptcy Bar Association who may be able to assist you.

• How many copies of a document do I need to submit for filing?

  The court needs only one copy with an original signature. If you wish to submit additional copies to have file-stamped and returned to you, please include an addressed return envelope with sufficient postage affixed.

• Can I file documents online, by fax, or by email?

  Unless specifically directed to do so by the judge, documents for filing may not be faxed or emailed. For documents mailed to the court, be aware that the filing date will be the date that the court receives the document, not when you put it in the mail. 

  Online filing: If a party is represented by an attorney, only the attorney may electronically file documents. Pro se parties, i.e. parties without an attorney, may apply for a login for the CM/ECF system which will give access to a limited menu of documents if the case or proceeding already exists. Pro se parties may not file a bankruptcy petition or a complaint to open a case. Registration and training are required. For more information, contact the Clerk's Office.

• What is the best way to get information about a bankruptcy case?

  Use PACER (Public Access to Court Electronic Records), the federal judiciary’s online service for viewing the docket sheet and documents filed in the case. You must obtain a login for PACER and there are charges for viewing documents. However, fees will be waived if the amount due is less than $30 in a quarter.

• How can I get copies of documents filed in a case?

  See the information for Copies of Documents under the Case Information tab at this website.

• How may I get a certified copy of an order or other document?

  You may request that any document in the record be certified as a true copy. There is a certification fee as well as a copying fee for the number of pages copied. If you wish a certification of a judgment or order for registration in another federal district, use Form B 265. Make your request by sending an email with the specific case and document information to copies@hib.uscourts.gov. You will be advised of the exact amount of the charge.

• What is the difference between certification and exemplification of a judgment or order?

  Generally, certifications of judgments are intended to be used for registering the judgment in another federal court. An exemplification is used for filing a copy of a document with a state court or local authority. There is a fee to prepare an exemplification certificate in addition to the copying charge. If a copy of a document is to be filed in a foreign country, an apostille must be issued by the district court.

• May I pay a filing fee with a check? How about a credit or debit card?

  Personal checks and credit and debit cards are not accepted from debtors and individual creditors. Attorneys and financial institutions may use business checks imprinted with the name of the law firm or institution. The court accepts money orders and cashier’s checks. The court no longer accepts payments in cash. In addition, the court requires attorneys who electronically file motions and complaints in CM/ECF to pay the filing fees with a credit (but not a debit) card as part of the online filing.

  The court  also accepts online payments using a government service, pay.gov. For more information, click here.

• How may I find out what happened at a hearing that I could not attend?

  If no order has been entered on the docket, a minute entry will briefly summarize any decision made at the hearing. An audio record may also be available. You may view the minutes and listen to the audio file online using PACER, the federal judiciary’s online record system. Court staff are not allowed to explain or interpret what or why something happened at a hearing.

• What if I don’t agree with an order issued by the judge?

  You may file a notice of appeal after the order or judgment is entered in the record. The person filing the appeal is the appellant and the adverse party is the appellee. There is a filing fee of $298. In certain circumstances, before filing an appeal, you may file a motion to alter or amend the judgment or for relief from the order - these types of motions are sometimes referred to as motions for reconsideration. There are strict deadlines in the Bankruptcy Rules for filing appeals and motions for reconsideration.

• Is there a difference between a trustee and the U.S. Trustee?

  The U.S. Trustee Program is part of the Department of Justice, not a part of the court or federal judiciary. The U.S. Trustee Program oversees the bankruptcy system and appoints individual trustees in specific cases to make distributions if assets are sold in chapter 7 or plan payments are made in chapter 13 . These case trustees are private citizens, not government officials, but must file reports with the local Office of the U.S. Trustee.

• When I contacted the Office of the U.S. Trustee to discuss the case I’m involved in, why wouldn’t anyone help me?

  If you are represented by an attorney, ethical rules prohibit the staff of the Office of the U.S. Trustee from speaking with you - they may speak only with your lawyer. In addition, like court staff, the staff of the Office of U.S. Trustee is not allowed to give legal advice. 

• 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.