How do I know if I am eligible for Chapter 7 or Chapter 13 bankruptcy?

To find out if you are eligible for Chapter 7 or Chapter 13 bankruptcy in Hawaii, you must first determine your average gross income over the past six months. To do this, you will need to look at your income tax returns. If your gross income is below the median income in the state of Hawaii, you are eligible to file for Chapter 7 bankruptcy. If your income is above the median income, then you must determine if you have sufficient disposable income to pay back at least some of your debts through a Chapter 13 repayment plan. To determine if you have the necessary disposable income to qualify for Chapter 13 bankruptcy, you must evaluate your average monthly income and expenses. This involves looking at things like your average monthly housing costs, food expenses, transportation costs, child support payments, medical bills, and any other expenses you have. Once these expenses are accounted for, you will need to calculate the difference between your income and expenses. If the number is greater than the amount of debt you owe, then you may be eligible for a Chapter 13 repayment plan and should speak to a bankruptcy attorney for more information. Bankruptcy law can be complex, so it is important to consult with an experienced bankruptcy attorney for advice on whether Chapter 7 or Chapter 13 is the best option for your situation. Your lawyer will be able to explain your eligibility and other important considerations you need to take into account before making this decision.

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How do I know if I am eligible for Chapter 7 or Chapter 13 bankruptcy?

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