Legal Question in Bankruptcy in Hawaii

Re: Paid an Audit Company to get out of forclosure

Before we go any further, I am not admitted in Hawaii, but in New York. Bankruptcy law is federal, but it has local flavors, which means that I can answer general questions, but not questions about how Hawaii interprets the federal laws, how Hawaiian law works, or how the District of Hawaii runs its bankruptcy system.

I can tell you, though, that YOU NEED TO HIRE A LAWYER; do NOT try to navigate alone these waters in which you find yourself (call your local bar association for a referral). You are in very deep waters, but there may -- MAY -- be ways whereby you need not drown. You are not likely to find those ways on your own; you're too embroiled in the rushing currents. If you can't afford a lawyer (really can't afford one, not just think you can't), Hawaii MAY have a system whereby you can get legal help at reduced or no cost (NY does). You can find out about that from the bar association. They won't know to answer that question, though, unless you ask them.

As to the $1700, it sounds like you probably got scammed. You might consider reporting this to the appropriate authority in Hawaii (in NY, such things can get reported to the State Attorney General's Office; Hawaii may work differently or the same on that matter). Ask YOUR LAWYER to tell you whether or not you have a civil case (in which you might be able to recover at least part of the $1700) against the "audit company."

No matter which state you're in, foreclosure happens when some payment that is due to some authority (whether it be the mortgage holder or the property tax collecting unit of some government) is way overdue. The authority files a case in court and, on court order, seizes the property in lieu of payment. Unless the "audit company" holds your mortgage, they're not the ones that can foreclose on your property. I have no idea how the "audit company" came into the picture to begin with....?

If a foreclosure is contemplated or in progress, a bankruptcy petition can, at least temporarily, stop those proceedings. If the foreclosure case goes to judgment, it may well be too late to do anything about it.

YOUR LAWYER may be able to work with the mortgage holder to see what can be done to get the foreclosure proceeding dropped altogether. It very well may remain possible to do that, even at this late date, since mortgage holders want money, not houses. Mortgage holders, however, tend to deal much better with lawyers than with their debtors at your juncture. HIRE A LAWYER.

You may have other options, depending on your situation and Hawaiian law. I cannot stress enough: HIRE A LAWYER.

Good luck. HIRE A LAWYER.

THE INFORMATION PRESENTED HERE IS GENERAL IN NATURE AND IS NOT INTENDED, NOR SHOULD IT BE CONSTRUED, AS LEGAL ADVICE. THIS POSTING DOES NOT CREATE ANY ATTORNEY-CLIENT RELATIONSHIP BETWEEN US. FOR SPECIFIC ADVICE ABOUT YOUR PARTICULAR SITUATION, CONSULT YOUR ATTORNEY.