The Hawaii bankruptcy exemptions chart, see below, details the property you can exempt or protect from creditors when you file bankruptcy in Hawaii. You may exempt any property that falls into one of the exemptions categories below, up to the dollar amount listed. You will be able to kept this exempted property after you file bankruptcy. Please note that there are certain debts which you will not be able to erase in bankruptcy. (see Non-dischargeable Debts)
In Hawaii, you also have the choice of using the federal exemption statutes instead of your Hawaii exemptions.
An exemption limit applies to any equity you have in the property. Equity is the difference between the value of the property and what is owed on the property. For example, a car valued at $5000 with a loan of $4500 has an equity value of only $500.
If the property is secured by a loan, such as a car or home, and you are current on the payments and the equity is covered by your exemptions, you may elect to keep making payments on the loan and keep this property through the bankruptcy. If all the equity is not covered by your exemptions the trustee may elect to liquidate this asset and distribute the proceeds. Generally, in this case, you would be entitled to the value of your exemption in the asset as a cash payment.
Bankruptcy law allows married couples filing jointly to each claim a full set of exemptions, unless otherwise noted.
To keep non-exempt property, a debtor must generally pay the trustee the value of the non-exempt property.
When you file bankruptcy in Hawaii you may also use certain federal exemptions in addition to your Hawaii exemptions.
ASSET | EXEMPTION DESCRIPTION | LAW SECTION |
HOMESTEAD | Head of family or over 65 to $30,000 ; all others to $20,000 ; property cannot exceed 1 acre. sale proceeds exempt for 6 months after sale. | 36-651-91, 36-351-92, 36-351-96 |
Property held as tenancy by the entirety may be exempt against debts owed by only one spouse | Security Pacific Bank v. Chang, 818 F.Supp. 1343 (D. Ha. 1993) | |
INSURANCE | Annuity contract or endowment policy proceeds if beneficiary is insured's spouse, child or parent | 24-431:10-232(b) |
Disability benefits | 24-431:10-231 | |
Fraternal benefit society benefits | 24-432:2-403 | |
Group life insurance policy or proceeds | 24-431:10-233 | |
Life or health insurance policy for spouse or child | 24-431:10-234 | |
Life insurance proceeds if clause prohibits proceeds from being used to pay beneficiary's creditors | 24-431:10-D:112 | |
MISC. | Property of business partnership | 23-425-125 |
PENSIONS | ERISA-qualified benefits deposited over 3 years before filing bankruptcy | 36-651-124 |
Firefighters | 7-88-169 | |
Police officers | 7-88-169 | |
Public officers and employees | 7-88-94, 36-653-3 | |
PERSONAL PROPERTY | Appliances and furnishings needed | 36-651-121(1) |
Books | 36-651-121(1) | |
Burial plot to 250 square feet plus tombstones, monuments and fencing on site | 36-651-121(4) | |
Clothing | 36-651-121(1) | |
Housing down payments for home in state project | 20-359-104 | |
Jewelry and articles of adornment to $1,000 | 36-651-121(1) | |
Motor vehicle to wholesale value of $2,575 | 36-651-121(2) | |
Proceeds for sold or damaged exempt property; proceeds exempt only 6 months | 36-651-121(5) | |
PUBLIC BENEFITS | Public assistance paid by Dept. of Health Services for work done in home or workshop | 20-346-33 |
Unemployment compensation | 21-383-163 | |
Unemployment work relief funds to $60 per month | 36-653-4 | |
Workers' compensation | 21-386-57 | |
TOOLS OF TRADE | Tools, implements, books, instruments, uniforms, furnishings, fishing boat, nets, motor vehicle and other personal property needed for livelihood | 36-651-121(3) |
WAGES | Unpaid wages due for services of past 31 days; after 31 days, 95% of 1st $100; 90% of 2nd $100; 80% of rest | 36-651-121(6), 36-652-1 |
Prisoner's wages held by Dept. of Public Safety | 20-353-22 | |
WILD CARD | NONE |
|
For more information on filing bankruptcy in Hawaii explore Hawaii Bankruptcy Law.
