Compassion is a central theme of our practice, and we take great pride in assisting our clients in obtaining a fresh start from their debt problems.

Foster Law Offices strives to provide clients with exceptional service and the efficient resolution to legal matters related to consumer and business debt. We represent clients of all types. From large institutional clients, to bankruptcy trustees and receivers to individuals struggling with mortgage, credit card, business and most other types of debt, our bankruptcy practice offers debt solutions to clients seeking liquidation or reorganization as well as clients seeking to sell or purchase real property or other valuable assets in a Chapter 11 or Chapter 7 bankruptcy case.

Consumer Bankruptcy

A consumer bankruptcy involves bankruptcy cases where more than 50% of a client’s debt is NOT related to business or investments. Consumer bankruptcy cases involve debts such as a mortgage on a primary residence, credit cards, auto loans, medical bills, taxes, and collections. Most consumer bankruptcy cases are filed as Chapter 7 cases. Although a Chapter 7 bankruptcy is sometimes referred to as a “liquidation bankruptcy,” very few Chapter 7 cases involve any liquidation (sale) of a client’s assets.

When filing a Chapter 7, clients are required to disclose personal information such as name, address, social security number, business tax identification number(s), as well as assets, income, expenses and debt as of the date of the bankruptcy filing. Clients must also disclose various other information on the “Statement of Financial Affairs” section of the bankruptcy case.

In addition to disclosing information, Clients are required to complete two credit counseling courses. The first course is taken prior to the Chapter 7 filing and a second course must be completed after filing but prior to discharge. Most credit counseling classes can be completed online.

Click below to read a brief summary of each step in the bankruptcy process:

1) The Automatic Stay:

Immediately upon the Chapter 7 filing, an automatic stay goes into effect.  Pursuant to 11 U.S.C. 362(a) the automatic stay prohibits most creditors from undertaking most collection activities and can be a tremendous benefit for those facing lawsuits, foreclosure, creditor harassment or any other collection action subject to the stay.  More specifically, the automatic stay stops most lawsuits, garnishments, and acts to prohibit bill collectors from calling, writing or otherwise contacting the Client. The automatic stay also prohibits a mortgage lender from proceeding with foreclosure and an automobile lender from repossessing a Client’s vehicle.

2) The Meeting of Creditors:

Within 20-40 days after filing, Clients must appear for a court hearing called a Meeting of Creditors, or 341 Meeting.  The meeting is conducted by an individual appointed by the United States Trustee’s office (division of the Department of Justice) called an interim trustee.  Trustees are not judges.  In most cases, trustees are highly experienced, and skilled, lawyers and certified public accountants. The role of the Trustee is to evaluate the Client’s case and determine whether the Client maintains any assets that may be sold by the Trustee and proceeds of tvhe sale paid to the Client’s creditors.

3) Assets and Exemptions:

Prior to filing, a Foster Law Offices attorney will evaluate your case and advise you of any risk you may have in losing assets in a consumer Chapter 7 case.  In most cases, Client’s assets are protected by exemptions under state or federal law.  Exemptions protect assets up to certain dollar amounts.  If an asset is fully exempt under the relevant statutory exemption, the Trustee cannot sell the asset in a Chapter 7 bankruptcy case.  In some cases, Clients have chosen to file bankruptcy and allow the liquidation of an asset due to either a high debt burden or the time and expense involved in selling the asset outside of bankruptcy.

It is important to consult a bankruptcy attorney experienced in liquidation cases in order to fully understand the impact a Chapter 7 filing may have on a Client’s real and personal property.  Surprise is not an emotion a bankruptcy client needs to feel after struggling with the stress of debt and the causes associated with a Client’s decision to file Chapter 7 bankruptcy.

4) Liquidation:

If an asset is sold in Chapter 7, the bankruptcy case will take several months longer to complete and close.  Assuming no parties’ filed objections, the discharge will be entered 60 days after the Meeting of Creditors.  The entry of the discharge occurs even though liquidation has not been completed.  Recently, a number of Chapter 7 trustees have decided to undertake short sales on properties Clients decide to surrender in their bankruptcy case.  These “bankruptcy short sales” can have positive impacts on the Client’s post-bankruptcy credit reporting as well as allowing the Client to avoid paying non-dischargeable HOA dues after the property is sold.

5) Discharge:

If the Trustee determines that a Client’s assets are exempt, she files a “Report of No Distribution” shortly after the Meeting of Creditors.  Provided there is no objection to the Client’s case, a Discharge is entered by the Court 60 days following the Meeting of Creditors.  The Discharge is a bankruptcy court order providing for the elimination of dischargeable debt.  Debt subject to the Chapter 7 discharge includes: credit card, medical, mortgage, auto loan, apartment leases, business debts, and a wide variety of other debt.  Debt not subject to discharge in Chapter 7 includes: student loans, child support, alimony/spousal maintenance, most tax debt, traffic/parking tickets, HOA dues incurred after the filing date of the bankruptcy case, and other debts specifically identified in 11 U.S.C. 523(a).

6) Post-Discharge Credit Reporting:

After a Client receives her discharge and the case is closed, we recommend Clients carefully review their credit report in order to ensure that all debts are being properly reported as “discharged in Chapter 7.”  If a debt account is reported as open, delinquent or reporting other than discharged, the Client must formally dispute the incorrect reporting.  The basis for the dispute should be the Chapter 7 discharge.

What is Chapter 13 Bankruptcy?

A Chapter 13 bankruptcy is typically utilized by a home owner who has fallen behind on mortgage payments or an individual whose income is too high to qualify for Chapter 7.A bankruptcy filed under Chapter 13 is designed for people with regular income who want to or can pay their debts but are presently unable to do so. A Chapter 13 bankruptcy enables the debtor, under court supervision and protection, to propose and carry out a plan for repaying creditors over an extended period of time. The importance of working with an experienced Kona bankruptcy attorney, or Hawaii bankruptcy lawyer familiar with all of the details of Chapter 13 bankruptcy in the State of Hawaii cannot be overstated. It has to be done right the first time. If you have any questions about filing bankruptcy in Kona, the Big Island, or the state of Hawaii, please contact us so we can set up a free consultation for you with one of our Big Island bankruptcy lawyers. You will be glad you did.

How Foster Law Offices Can Help You:

At Foster Law Offices, we are an experienced, friendly and compassionate Seattle consumer bankruptcy practice that is dedicated to protecting our client’s assets and legal rights while eliminating or restructuring debt.  As a federally-designated “debt relief agency,” we have assisted a wide range of clients facing debt-related problems such as:

  • Credit Cards
  • Medical Bills
  • Mortgage Delinquencies
  • Home Foreclosures
  • Lawsuits
  • Garnishments
  • Payday Loans
  • Auto Repossessions

Our services include client-focused representation of individuals and businesses in Chapter 7, Chapter 13, as well as foreclosure and mortgage counseling and out-of-court (non-bankruptcy) settlements of credit card, medical, business bankruptcy and other debt.

We offer low, flat-rate fees for bankruptcy case preparation and a free initial consultation to discuss your best option when facing debt and credit problems.

You can rest-assured that we will listen carefully to your situation and offer friendly and non-judgmental legal advice and counsel tailored to solve your individual needs. We welcome your inquiries and questions regarding our real estate practice. To contact us, please complete the Quick Contact Form or feel free to call us at (808) 348-7800.

Testimonials From Past Clients

Neel
April 6, 2014

Working with Jeff was truly a pleasure. You will never find a more professional, hard-working, and thorough lawyer to represent you. I am a first time home buyer but had to walk away from one purchase because of foundation issues that the seller didn’t disclose at the start of the purchase process. Jeff helped me work through issues with a very-difficult-to-work-with seller and his lawyer, and ended up getting them to “settle” by giving me all of the disputed money and paying his attorney’s fees. Jeff is a straight shooter. He’ll tell you right away whether or not you have a good case and guide you through the process in an extremely thoughtful and methodical way. He’s a very good communicator and kept me in the loop throughout the entire case. I was also very refreshed to find that Jeff is a very ethical person and just an all-around good human being. He truly cares about his clients and wants to make this as smooth a process as possible for you. He won’t just weigh the money involved but also how much stress it could cause. Life is about much more than just money, and Jeff has a very good grasp of that. He has the experience you’ll need to get through whatever issues you’re facing. I HIGHLY recommend Foster Law Offices, and will most definitely go to them for any law-related questions or issues I might have in the future.

John
July 26, 2015

We are so lucky that Jeff Foster decided to open up an office in Hawaii because there were no foreclosure lawyers here on the Big Island and we were about to lose our home. I lost my job and Chase bank pounced on us after falling behind on 3 mortgage payments then gave us the runaround for over 2 years as they denied our re-modification request 7 times. Jeff took on our case and helped us with this stressful situation as we were about to give up but he gave us hope. Jeff is a very knowledgeable professional as he even pointed out some mistakes that the judge has missed on our behalf. We highly recommend Jeff Foster as he truly cares about his clients and will fight for you to the end!

Mark
August 26, 2015

I was very fortunate to have had Jeff untangle my “Jennifer McTigue real estate nightmare”. I had significant issues with my title, several banking institutions laying claim to my property, and Jeff navigated my case to a very satisfactory conclusion. There aren’t enough positive adjectives that I can use to describe his handling of my case. I refer him to everyone with any real estate issues. The best!!

Amanda
August 6, 2016

Foster Law did an excellent job representing me in my auto injury claim. It was a low impact accident which resulted in an injury requiring surgery. Jeff Foster and his team stood up to bat and fought hard for me. They were caring and understanding, always promptly returned e-mails and phone calls, and taking the time to thoroughly explain my options to me. I couldn’t be happier with the result as they were able to get the maximum amount due to me through my and the at fault party’s insurance policies.

Emily
August 24, 2016

Jeff was a great representative. He was responsive, reasonable, personable, and got me a great result in my personal injury claim. Despite living in a different time zone, he was easy to work with and available when I needed him. I would be happy to recommend him.

Carlos
November 2, 2016

Mr. Foster was my attorney in a very tough Foreclosure case and he was able to get me into Mediation and ultimately because of this we were able to save our home. My family and I are very grateful for his hard work and due diligence. I highly recommend Jeff Foster.

Barbara
January 31, 2017

Jeff was proactive in his representation from day one. He came to my nursing home after my bodily injury accident and made me feel at ease and told me not to worry that he would handle the case. I hired Jeff on the spot. Jeff is an excellent attorney, soft spoken but also firm on what his client needs. If you are looking for an attorney who has compassion, integrity, and knowledge in personal injury law, Jeff is the attorney for you! My husband and I are so blessed to have had Jeff as an advocate for this case and we cannot thank him enough for a settlement that was quick and fair.

Craig
March 16, 2017

Jeff represented me in my automobile injury claim. After getting the run around from the insurance company, I decide to get a consultation with Foster Law. Jeff took care of everything and made sure all my injuries medical bills were taken care of. Let the professional deal with the insurance companies.

If you get in an accident see Jeff, don’t make the mistake of trying to deal with the insurance company on your own.

Bret
July 23, 2017

I was the victim of an auto accident in December of 2014 that left me with debilitating whiplash injuries and loss of function. I contacted Jeff Foster on a recommendation from my son and after consulting with him I felt very comfortable in hiring him to handle my case. I found him to be kind, compassionate, and an excellent communicator throughout and I feel he did an exceptional job for me. He kept me informed at each step, explained everything very clearly throughout the process, returned my calls immediately whenever I had a question, and made sure that I always felt comfortable with the direction the case was heading. I felt that I was a part of a very supportive team and am pleased with the conclusion of my case. I would highly recommend Jeff Foster as a kind and truly caring professional.

Nicole
August 15, 2017

Jeff Foster represented our family in a very tragic accident where we all lost the most amazing man we’ll ever know. He was extremely compassionate and showed so much care in the way that he handled all of us being in such a fragile state. I would highly recommend Jeff to represent you and would strongly say look no further. Our family will be forever grateful.

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Jeffrey Foster

Attorney Jeffrey Foster proudly represents individuals and business who are looking for representation and strategic legal advice.

Aloha ~ I look forward to the opportunity to assist you in resolving your case, claim, transaction or litigation matter.

Thank you and Mahalo,
Jeff Foster
(808) 348-7800