Case Management Level III

Level III Case Management

Debt Management Plans (DMP) and Bankruptcy Counseling

Level III case management is designed for HOAP clients who are in serious debt and have delinquent accounts with creditors that need immediate intervention. Through the execution of a DMP, a service provider is able to negotiate an affordable payment plan with creditors, set a payment schedule for the client that is automatically deducted from the client’s checking account, deposited with the service provider, who then distributes payments to the client’s creditors. The service provider may also be able to negotiate late payment fees, finance charges, and interest rates. The service provider will track the client for a minimum of twelve (12) months. A DMP can last anywhere between 12 to 48 months depending on the size of the debt and number of creditors.

If a client is considering bankruptcy, the law requires that prior to filing you must receive counseling from a non-profit credit counseling agency approved by the Department of Justice. Through HOAP, a client is referred to an agency in Hawai‘i approved to provide face-to-face, telephone and/or internet pre-bankruptcy counseling. Upon completion, the service provider issues a certificate valid for 180 days that must be filed with a bankruptcy petition.

Currently, there is only one (1) service provider that is able to provide such services - Consumer Credit Counseling Service of Hawai'i.