What kind of debt relief is available to married couples filing for bankruptcy?

Married couples filing for bankruptcy in Hawaii have several options for debt relief. The most common option is a Chapter 7 bankruptcy. This type of bankruptcy liquidates the couple’s assets and pays off their creditors using the proceeds. This type of bankruptcy doesn’t always discharge every kind of debt, however, so the couple should check with their bankruptcy attorney to see if this is an option for them. In addition to Chapter 7, couples can also file for Chapter 13 bankruptcy. This type of bankruptcy is also known as a “reorganization” bankruptcy because it allows the couple to reorganize their finances and create a repayment plan with the help of a bankruptcy trustee. The couple will be able to keep a portion of their assets, but will have to make payments to the trustee who will then distribute the payments amongst the creditors. Finally, married couples may also be eligible for lien stripping. This process allows the couple to strip any junior liens on their property so that they can make their payments more manageable. This is not an option for all couples, so they should speak with a professional to determine if this is an option for them. In summary, married couples in Hawaii have several options for debt relief when filing for bankruptcy. These include Chapter 7 liquidation, Chapter 13 reorganization, and lien stripping. A bankruptcy attorney can help the couple determine which options are best for their individual situation.

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What kind of debt relief is available to married couples filing for bankruptcy?

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