What procedures should I follow in the event of bankruptcy?

If you are a small business owner in Hawaii and are facing bankruptcy, there are a few procedures you should follow to ensure you are in compliance with the state’s laws. First, contact your creditors and try to come to an agreement to pay back what you owe them. If the creditors are not able to work out a repayment plan, then you should consult an attorney that is familiar with small business law in Hawaii. Your lawyer should be able to help you determine which type of bankruptcy is the best option, whether it’s Chapter 7, 11, 12, or 13. Depending on your situation, the attorney may advise you to go for voluntary liquidation instead of formal bankruptcy. Once you have decided which type of bankruptcy to pursue, you will need to create a list of your assets and liabilities, including any assets that are part of a retirement plan. You will also need to provide financial statements and other documents to prove your inability to pay your debts. Finally, you must attend a credit counseling course given by an approved agency and get permission from the court to file for bankruptcy. Once you have submitted your paperwork, you will have to attend a court hearing where the judge will determine if you are eligible for the bankruptcy. After the judge has approved your bankruptcy, you will have to attend a meeting of creditors. At the meeting, you will be asked questions by your creditors and the court trustee. Following this meeting, the court will issue a decision on whether or not you are considered bankrupt. Once the court has made their decision, you can begin the process of rebuilding your business.

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What procedures should I follow in the event of bankruptcy?

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