File Bankruptcy in Hawaii

In Hawaii you can apply for both Chapter 7 and Chapter 13 Bankruptcy as an individual consumer.

Bankruptcy in Hawaii does not discharge some debts, including most back taxes, child support, alimony, most student loans, penalties or fines, and purchases greater than $550 made within 90 days of filing bankruptcy, or cash advances greater than $825 made within 70 days of filing bankruptcy.

To file for Chapter 7 bankruptcy in Hawaii and have your debts erased, you must pass a means test. Under the test, if you make less than the median income for a Hawaii family, you may file under Chapter 7. For singles, the median income in Hawaii is $47,256. $60,223 is the median income for a family of two, $71,553 for three persons, and $86,878 for four persons. If there are more than four members of your family, add $6,900 for each additional person.

Before you file Chapter 7 bankruptcy in Hawaii you will need to undergo credit counseling approved by the state, as well as complete any unfiled tax returns.

Once you meet the minimum requirements, your attorney will need to file a Statement of Financial Affairs with your local Hawaii Court. Your Statement of Financial Affairs will include a list of all your debts, both secured (such as mortgages or car loans) and unsecured (such as credit cards and medical bills). You will also need to include names and contact information for all your creditors and an itemized list of your personal property and assets. The filing fee for Chapter 7 bankruptcy in Hawaii is $299.

In Hawaii you may choose from two “exemption schemes” when filing Chapter 7 bankruptcy: the Federal scheme or Hawaii state scheme.

Under the Federal scheme, you may exempt your house or mobile home up to $20,200. Pursuant to the Hawaii state scheme, you may exempt your homestead up to $30,000 if you are over 65 years old or are the head of your household; the maximum is $20,000 for all others.

Under the Federal exemption scheme, you may exempt your automobile up to $3,225. Under the Hawaii state scheme, the limit is $2,575. Regardless of which exemption scheme you choose, you must reaffirm any auto loans after filing bankruptcy.

Under the Federal exemption, you also keep: alimony, child support, and most life insurance; retirement benefits and pensions; household goods valued at no more than $525 each, with a total value not to exceed $10,775; jewelry valued up to $1,350; necessary health aids; public assistance, social security, and veterans’ benefits. You are also given a $1,075 “wild card” exemption under the federal scheme. These values may be doubled if you are a married couple.

Under the Hawaii exemption scheme, you may exempt the following from your bankruptcy: Furniture, appliances, clothing, jewelry, and books, up to $1,000; tools, fishing equipment, and other instruments needed for your job; burial plots; insurance proceeds; disability, unemployment, and workers’ compensation benefits.

Under Hawaii state exemptions, you may also keep any wages or commissions you earned in the 31 days prior to filing bankruptcy.
If you have extra income that would allow you to repay your debts, you may want to file Chapter 13 bankruptcy. When you file Chapter 13 bankruptcy in Hawaii, you will establish a payment plan with the approval of the court.