{"id":286845,"date":"2021-04-21T06:59:06","date_gmt":"2021-04-21T11:59:06","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/bankruptcy\/bankruptcy-laws-by-state\/hawaii-bankruptcy-exemptions-and-law.html"},"modified":"2021-04-21T07:41:35","modified_gmt":"2021-04-21T12:41:35","slug":"hawaii-bankruptcy-exemptions-and-law","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/bankruptcy\/bankruptcy-laws-by-state\/hawaii-bankruptcy-exemptions-and-law.html","title":{"rendered":"Hawaii Bankruptcy Exemptions and Law"},"content":{"rendered":"\n
\n \n
\n

Hawaii Bankruptcy Exemptions and Law<\/h1>\n
\n
\n By Bret Thurman, J.D.<\/a> | Legally reviewed by Bridget Molitor, JD<\/a>\n | Last updated\n
\n \n <\/i>\n Legally Reviewed\n <\/summary>\n\n
\n

This article has been written and reviewed for legal accuracy, clarity, and style by FindLaw\u2019s team of legal writers and attorneys<\/a> and in accordance with our editorial standards<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n\n

\n \n <\/i>\n Fact-Checked\n <\/summary>\n\n
\n

The last updated date refers to the last time this article was reviewed by FindLaw or one of our contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please contact an attorney in your area<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n<\/section>\n

Due to the cost of living in Hawaii, many area families spend so much on basic expenses that they have little or no financial reserve. These families are especially vulnerable to high medical bills<\/a> and the other financial storms that can prompt bankruptcy filings.
\r\n<\/p>\r\n

Lenders usually care nothing about the financial storms that borrowers face. They simply want their money. And they have the tools to obtain it. In Hawaii, many lenders can garnish wages, foreclose on property, and take other adverse actions without obtaining court orders.<\/p>\r\n

With apologies to Bob Dylan, bankruptcy offers shelter from the storm. Bankruptcy stops the aforementioned adverse actions dead in their tracks. Furthermore, a bankruptcy attorney<\/a> can maximize Hawaii’s property exemptions so creditors cannot liquidate your assets (take your property). This combination is the essence of the fresh start that the Bankruptcy Code guarantees.<\/p>\r\n

<\/a>Hawaii Bankruptcy Law<\/h2>\r\n

Many of our laws are a combination of state and federal rules. For example, we pay federal and state income taxes. Similarly, Hawaii’s bankruptcy courts use a combination of the federal Bankruptcy Code<\/a> and the Hawaii Revised Statutes<\/a>. The Bankruptcy Code controls most or all aspects of consumer bankruptcy in the Aloha State. Property exemptions, which are outlined below, are the major exception.<\/p>\r\n

Bankruptcy 101<\/h3>\r\n

The Automatic Stay<\/b><\/p>\r\n

As soon as debtors file their voluntary petitions, the automatic stay<\/a> applies. Similar relief may be available elsewhere. But it is limited, and there are many strings attached. Only bankruptcy \u2014 and Section 362 of the Bankruptcy Code \u2014 automatically stops things like:<\/p>\r\n