Honolulu, HI- According to statistics from the U.S. Bankruptcy Court of Hawaii, bankruptcy filings in the state dropped 26 percent in April over the same month last year.
In total, there were 254 bankruptcy petitions filed in April, representing a 27.5 percent decline. In April of 2011, a total of 342 individuals and businesses sought debt relief through the courts. During the same month in 2010, a total of 395 flings were presented to the bankruptcy courts.
The majority of individuals, utilizing bankruptcy attorneys for debt protection, filed under the Chapter 7 plan, which requires that assets are sold off, or liquidated, in order to satisfy creditors and pay their debts. The total number of chapter 7 filings dropped 22.7 percent in 2011 to 201 cases, down from 260 in the previous year.
Chapter 13 filings dropped 31.6 percent for a total of 52 cases in April of this year.
Chapter 13 bankruptcy is a type of reorganization where the debtor must be able to develop a repayment plan that creditors can agree on and have a source of regular income. The reorganization plan gives the individual a specific time frame to pay creditors.
The decision to declare bankruptcy is not an easy one. The indebted business or person will have many questions, which can be answered by a capable bankruptcy lawyer. After examining their client’s financial situation, they will determine which debt relief structure will be more appropriate for their needs.
If you are overwhelmed by debt and are tired of phone calls from collectors, you should meet with a bankruptcy attorney to figure out how you can reduce or eliminate debts and get a fresh start.