State Of Hawaii Has Rising Bankruptcy Filings

Written by Adam Peck Category: Nursing Homes January 17th, 2013 2 min read

Even paradise has its share of problems: In this case, it’d be a rising number of personal bankruptcy filings. The Honolulu Star-Bulletin reported in mid-February that bankruptcy filings in Hawaii rose 32.7 percent this January when compared to the same month one year earlier. This is only continuing a trend in Hawaii: In January of 2009, bankruptcy filings had soared 82.5 percent from the same month in 2008. It only proves that bankruptcy is a serious issue across the entire United States, even in those states traditionally associated with fun, sun and beach living.

Chapter 13 on the Rise In Hawaii, according to the Star-Bulletin, the biggest percentage increase in bankruptcy filings were of the Chapter 13 kind, which rose from 38 cases in January of 2009 to 60 in January of 2010. That represents an increase of nearly 58 percent. If you’re looking for a hint of good news in the Star-Bulletin story, this is it: Chapter 13 bankruptcy is by far the least economically damaging type of bankruptcy for consumers to file. Under this form of bankruptcy, a judge works out a repayment plan so that struggling consumers can pay back their creditors in a time frame that works for them. The judge also makes sure that the consumers aren’t burdened with monthly payments that they can’t afford. Chapter 7 bankruptcy filings are far more significant.

The Seriousness of Chapter 7 Under a Chapter 7 bankruptcy filing, there is no repayment plan. Instead, a certain portion – or maybe the entirety – of consumers’ debts is simply forgiven. This may seem like the easy way out for consumers struggling to pay their bills. But Chapter 7 bankruptcy filings actually come with a high cost. First, consumers may lose most of their important assets. This includes their homes and cars. Secondly, when consumers have Chapter 7 bankruptcy filings on their records, they often find it difficult to apply for mortgage or car loans in the future. They also struggle to obtain credit cards. The reason? A Chapter 7.

Share it

Questions? Check with Peck Today

Blog Lead Form

Elder Abuse and Neglect in Assisted Living Facilities

Elopement in Nursing Homes

Assisted Living Abuse

Settlement Reached in Assisted Living Facility Death

Assisted Living Abuse and Neglect Attorneys

Written by Adam Peck

Expertise: Personal Injury

Adam J. Peck, ESQ is a principal with Peck Law Group, APC. In 2008, Mr. Adam Peck received his Juris Doctorate from Whittier Law School where he graduated Cum Laude. His practice is primarily dedicated to representing Elders, Dependent Adults, along with their loved ones and family members, who have suffered horrific personal injuries.