{"id":286845,"date":"2021-04-21T06:59:06","date_gmt":"2021-04-21T11:59:06","guid":{"rendered":"https:\/\/ability-fl-prod.internetbrands.com\/ability-law\/bankruptcy\/bankruptcy-laws-by-state\/hawaii-bankruptcy-exemptions-and-law.html"},"modified":"2026-09-21T09:46:14","modified_gmt":"2026-09-21T14:46:14","slug":"hawaii-bankruptcy-exemptions-and-law","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/state\/hawaii-law\/hawaii-bankruptcy-exemptions-and-law.html","title":{"rendered":"Hawaii Bankruptcy Exemptions and Law"},"content":{"rendered":"\n
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Hawaii Bankruptcy Exemptions and Law<\/h1>\n\n
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\n By Lyle Therese A. Hilotin-Lee, J.D.<\/a> | Legally reviewed by Catherine Hodder, Esq.<\/a>\n | Last updated\n
\n \n <\/i>\n Legally Reviewed\n <\/summary>\n\n
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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
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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\n\n

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Key Takeaways<\/h2>\n

Hawaii<\/span> bankruptcy laws<\/span> provide debt relief to distressed residents. Filing immediately triggers an automatic stay<\/span> that halts foreclosures<\/span>, repossessions, wage garnishment<\/span>, and creditor harassment. Debtors can discharge unsecured debts<\/span> through Chapter 7 or restructure payments using a Chapter 13 plan. State and federal property exemptions protect key assets like home equity, vehicles, and retirement accounts.<\/p>\n\n <\/div>\n <\/div>\n<\/div>\n\n

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Due to the cost of living in Hawaii<\/span>, many area families spend so much on basic expenses that they have little or no financial reserve. This can leave them vulnerable to high medical bills<\/span><\/a> and other financial storms that can prompt bankruptcy filings. In Hawaii<\/span>, many lenders can garnish<\/span> wages, foreclose on property, and take other adverse actions.<\/p>\n

Bankruptcy stops the aforementioned adverse actions dead in their tracks. Furthermore, a bankruptcy attorney<\/span><\/a> can maximize Hawaii<\/span>\u2019s property exemptions to limit what creditors can liquidate<\/span> from your assets (take your property). This combination embodies the fresh start<\/span> that the Bankruptcy Code<\/span> guarantees.<\/p>\n

Hawaii<\/span> Bankruptcy Law<\/span><\/strong><\/h2>\n

Many of our laws combine state and federal bankruptcy rules<\/span>. For example, we pay federal and state income taxes. Similarly, Hawaii<\/span>\u2019s bankruptcy courts<\/span> use a combination of the federal Bankruptcy Code<\/span><\/a> and the Hawaii<\/span> Revised Statutes<\/a>. The Bankruptcy Code<\/span> controls most or all aspects of consumer bankruptcy in the Aloha State. Property exemptions, which are outlined below, are the major exception.<\/p>\n

The Automatic Stay<\/span><\/strong><\/h2>\n

Filing your petition triggers the automatic stay<\/span><\/a>\u00a0immediately. Similar relief may be available elsewhere, but it\u2019s often limited. Only bankruptcy and Section 362 of the Bankruptcy Code<\/span> automatically stop things like:<\/p>\n