Bankruptcy Laws in Hawaii.

Federal filing fee for Chapter 7 bankruptcy. Fee waivers are available for qualifying low-income filers.

Federal filing fee for Chapter 13 bankruptcy.

You must complete credit counseling from an approved agency within 180 days before filing and a debtor education course before discharge.

Chapter 7 filers must pass a means test comparing their income to Hawaii's median income. Hawaii has one of the highest costs of living in the nation, which is reflected in higher median income thresholds.

Protects up to $30,000 of equity in a primary residence if you are head of household or over age 65. All other filers receive a $20,000 exemption. The property cannot exceed 1 acre. Sale proceeds are exempt for 6 months after sale. Spouses may not double the exemption.

Under Hawaii's state exemption system, motor vehicle equity up to $2,575 is protected. Many filers who need higher vehicle protection may benefit from choosing the federal exemption system instead.

Protects clothing, household furnishings, and appliances up to $2,575 in aggregate value. Tools of the trade, one commercial fishing boat and nets, and other items reasonably necessary for the debtor's trade or profession are also exempt. Jewelry is exempt up to $1,275.

Hawaii allows bankruptcy filers to choose between the state exemption system or the federal exemption system. You must use one system entirely and cannot mix and match. The federal homestead exemption is significantly higher, making it the better choice for many Hawaii filers.

Hawaii limits wage garnishment in accordance with federal law. Generally, up to 25% of disposable earnings or the amount exceeding 40 times the federal minimum wage, whichever is less, may be garnished. Certain debts (child support, taxes) may allow higher garnishment.