Hawaii bankruptcy laws

Filing for bankruptcy allows debtors to settle significant financial debts after their nonexempt assets have been distributed. Bankruptcy in the United States falls under federal jurisdiction by the United States Constitution (Article 1, Section 8).

However, bankruptcy is implemented as statute law and the relevant statutes are incorporated into the Bankruptcy Code of Title 11 of the United States Code. Currently, people can access two ways to file for bankruptcy: Chapter 7 and Chapter 13. Chapter 7 bankruptcy is an asset liquidation, while Chapter 13 involves a reorganization whereby the debtor creates a bankruptcy plan. payment of three to five years.

Although bankruptcy cases are filed in the United States Bankruptcy Court, they are often highly dependent on state laws. Hawaii is one of thirteen states in the US that offers a choice between federal and state bankruptcy laws.

Hawaii bankruptcy laws provide exemptions that save a portion of property from bankruptcy. Details of the exempt property are provided in the Hawaii bankruptcy chart. When you file for bankruptcy in Hawaii, a person gets a federal exemption in addition to the Hawaii exemptions. Under Hawaii bankruptcy laws, an exemption limit applies to any equity secured by loans. Properties included in the Hawaii exemption table are single family homes (up to $ 30,000 for seniors and $ 20,000 for others), all insurance, business partnership property, pensions, personal property such as appliances, books, burial plots, clothing , jewelry up to $ 1,000, and motor vehicles at $ 2,575, public benefits, tools of the trade and salaries at a minimum of 80%. Wild card exemptions are not granted in Hawaii.

In Hawaii bankruptcy law, filing Chapter 7 has advantages such as a complete fresh start, immediate protection, lack of a threshold on debt, and speedy resolution of the case. The advantages of a Hawaii Chapter 13 repayment plan are that it allows a person to keep their property, has more dischargeable debts, provides more repayment time, and separates creditors by class. Major changes to the new law effective October 17, 2005 include a means test, income test, state exemptions, counseling, and child support.

Filing for bankruptcy is an important decision and quite complicated in its implementation. In general, it is recommended to hire an attorney with experience in the field in question.