Hawaii Bankruptcy Laws

The state of has one district bankruptcy court that serves the entire state of Hawaii. The court has four locations in Hilo, Honolulu, Lihue and Wailuku.

Exemptions refer to property you can keep under chapter 7 bankruptcy. According to Lawyers.com, you can choose from the federal exemptions or those offered by the state of Hawaii. Under the federal bankruptcy laws, you may keep:

• Your home, including co-op or mobile home, to $20,200
• Life insurance payments for person you depended on, needed for support
• Life insurance policy with loan value, in accrued dividends or interest to $10,775
• Unmatured life insurance contract, except credit insurance policy
• Alimony, child support needed for support
• Pensions and Retirement Benefits, ERISA - qualified benefits needed for support
• $525 per item in any household goods up to a total of $10,775
• Health Aids
• Jewelry to $1,350
• Lost earnings payments
• Your motor vehicle to $3,225
• Personal injury compensation payments to $20,200, wrongful death payments, crime victims' compensation, public assistance, social security, unemployment compensation, and veterans' benefits
• Tools of trade up to $20,200
• Wild Card - $1,075 of any property plus up to $10,125 of any amount of unused homestead exemption

Married couples may double the amount of the federal exemptions.

Under Hawaii bankruptcy laws, you may keep:

• Real property interest to $30,000 if head of family or 65 years of age or older, otherwise to $20,000, limited to one acre
• Household furnishings and appliances, books, clothing, jewelry and watches to $1,000
• One motor vehicle to $2,575
• Tools, implements, instruments, uniforms, furnishings, books, equipment, one commercial fishing boat and nets, one motor vehicle and other personal property needed for livelihood
• Burial plot to 250 square feet plus tombstones, monuments and fencing on site
• Insurance proceeds
• Wages, salaries, commissions and other compensation for personal services rendered during the 31 days before date of proceeding
• Disability benefits
• Property of business partnership
• ERISA-qualified benefits deposited over three years prior to filing for bankruptcy
• Unemployment compensation
• Workers' Compensation

NOTE: These are the major bankruptcy exemptions. Check with your bankruptcy lawyer for a full exemptions list.

New Bankruptcy Law Changes - Outlines major changes you should know about in the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA), also known as the new bankruptcy laws.

This is important! The new bankruptcy law requires all debtors to fulfill two education requirements: a credit counseling course prior to filing and a financial management course before obtaining a discharge. Failure to complete either of these courses and file the appropriate certificates with the court will prevent a successful bankruptcy. The Chapter 13 Trustee will offer the required courses to Chapter 13 debtors, but Chapter 7 debtors are required to take the courses on their own.

Find a U.S. Trustee Approved Pre-Bankruptcy Counseling Provider and Post-Filing Debtor Education Provider.