What should I know about filing for business bankruptcy?

Filing for business bankruptcy in Hawaii can be a complicated process and it is important that you understand the process before taking action. All businesses that are filing in Hawaii need to register with the Bankruptcy Court in the state. After filing for bankruptcy, the business must submit financial and legal documents in order for the court to determine if the business is eligible for reorganization. The Bankruptcy Code outlines different forms of bankruptcies, and each type of bankruptcy requires different paperwork and legal procedures to be completed. A business may have the option of filing Chapter 7, 11, 12, or 13 bankruptcies. Chapter 7 business bankruptcy requires the business to liquidate most of their assets in order to pay off their debts. In Chapter 11, the business must propose a plan for reorganization to the court, whereas in Chapters 12 and 13 the business must present a repayment plan to the court. Before making any decisions or filing for bankruptcy, it is important to speak with a lawyer who specializes in business bankruptcy to ensure that you understand all of your options and that you are taking the appropriate steps to protect your business. Additionally, filing for bankruptcy does not necessarily absolve you of all of your debts—it is important to understand the implications of filing for bankruptcy fully prior to making a decision.

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What should I know about filing for business bankruptcy?

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