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Hawaii Bankruptcy Law
Those that do file for Chapter 7 bankruptcy can often save most of their remaining property through property exemptions allowed under federal and state laws. Hawaii allows its citizens to choose either option; however, they cannot mix the two. The state exemptions for Hawaii include:
Homestead |
Up to $30,000 for head of family or over 65, up to $20,000 for others |
Personal Property |
Motor vehicles up to wholesale value of $2,575; clothing; furnishings; miscellaneous heirlooms and jewelry up to $1,000; burial plot |
Wages |
Prisoner’s wages, excluding child support, restitution and other claims; wages unpaid due for services from the past 31 days |
Pensions |
Tax exempt retirement accounts; Traditional and Roth IRAs up to $1,095,000/person; police; firefighters; public officers and employees; ERISA-qualified benefits |
Public Benefits |
Public assistance from Dept. of Health; crime victims’ compensation; unemployment; worker’s comp; temporary disability benefits |
Tools of the Trade |
Tools, books, uniforms, implements, motor and water vehicles, needed for livelihood |
Insurance |
Accident, sickness, or health benefits; group life insurance; fraternal benefits; various forms of life insurance proceeds |
It is important to prepare well before filing for bankruptcy. There are some legal steps that a client can take in advance to protect some of their property and assets, as well as the credit counseling required by law, but with an attorney to help with those preparations and filing, as well as to work with the bankruptcy trustee during the process, a consumer should be able to complete the process and begin restoring their financial future.
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