Alternatives To Consider Before Filling For Bankruptcy In Hawaii

By Frances Graham


When individuals experience financial difficulties, they need a solution to help them offset their debt. Although applying for insolvency can offer that reprieve, it is important for people to consider other options before they make that decision; it is a life changing decision; hence they need to be careful. If you are considering filing for bankruptcy in Hawaii, read these tips first to help you make an informed choice.

Look for alternative means to clear your debts. Aside from your regular job, look for find evening jobs where you work even during weekends and holidays. Invest some money into a small money generating business that can give you constant income for some time until you clear your bills. The income you generate from these activities can be directed towards paying creditors.

If you are the type that never budgets and does things on impulse, you need to stop and begin to budget for your expenditures. With a clearly laid out budget, you can identify areas you can adjust to save extra cash; it may include cutting on utility bills and rent by relocating to a smaller place. Likewise, you can change your fuel guzzler for a more fuel efficient car or walk to work and save on transport.

Consider whether your problems are temporary. For instance, if you lost a job, you can qualify for employment benefits, or you have higher prospects of getting another job. If you have financial difficulties, but you have been paying your bills on time, consider waiting for some months to see whether your situation can improve.

Alternatively, you can talk to your lender about your intentions to file and negotiate to lower or change your payment scheme. Some lenders offer debt modification programs which you can benefit from, but it has to be before you declare insolvency. Your payments can be suspended temporarily if you apply for a deferment, and you have a loan.

You can consider seeking professional help and advice from credit counselors in Honolulu, HI. They have experience in negotiating with lenders something you cannot do alone; once they assess your situation, they can tell you whether it is realistic to go ahead with filling or you can exhaust other avenues before. Make sure the agency is credible and with your best interests at heart.

It is never an easy thing to qualify for insolvency given the intricate procedures that are involved. For clients who have a regular source of income, they should consider the provisions of Chapter 13 where you are given a grace period of five years to repay. When you are allotted money for you basic need and pay for secured loans in full, the rest is paid to creditors.

Just make sure you consider every possible option you have before you declare. The choice you make will have far reaching implications on your life; hire an insolvency attorney to review your circumstances and give you options. Only proceed with filing when you have tried all the above and you are still in debt.




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