Hawaii Bankruptcy Law
Bankruptcy Courts in Hawaii
If you live in Hawaii and are considering filing for bankruptcy, your case will be handled in the U.S. Bankruptcy Court for the District of Hawaii, located in Honolulu. The court serves all islands, including Oahu, Maui, Kauai, Molokai, Lanai, and Hawaii Island. Hearings may be held virtually or in person in Honolulu, depending on your case type and location.
Because filing rules and exemption choices can be complex, it’s best to work with an experienced bankruptcy attorney who understands Hawaii’s local procedures and can help ensure your case is filed correctly.
All bankruptcy cases in Hawaii follow federal bankruptcy law, but the court also applies local rules that supplement those laws. Court decisions are guided by the Ninth Circuit Court of Appeals, which also covers Alaska, Arizona, California, Idaho, Montana, Nevada, Oregon, and Washington.
Bankruptcy Filing Trends in Hawaii
The District of Hawaii records several hundred consumer bankruptcy filings each year. Chapter 7 cases remain the most common, allowing individuals to discharge unsecured debts such as credit cards and medical bills. Chapter 13 cases are also frequent among homeowners who want to catch up on mortgage payments or protect vehicles from repossession.
Most filings occur in Honolulu, but cases are also filed by residents of Maui, Kauai, and the Big Island through electronic access or remote appearances. These filings show how Hawaii residents use bankruptcy to stop collection efforts, prevent foreclosure, and achieve long-term financial recovery.
Where You File Depends on Where You Live
All bankruptcy cases are filed and administered through the U.S. Bankruptcy Court for the District of Hawaii, located in Honolulu.
Filers living outside Oahu can submit documents electronically or by mail and may attend hearings or creditor meetings virtually or by video conference when in-person attendance is not practical.
Because local filing procedures can vary depending on your island and trustee assignment, it’s best to consult an experienced bankruptcy attorney who understands Hawaii’s local practices and can ensure your case is filed correctly.
Hawaii Exemptions — What You Can Keep
Bankruptcy does not mean losing everything you own. Hawaii law protects certain exempt property, which includes the things you need to live and work. These items are protected from creditors and cannot be sold to pay debts.
Debtors filing in Hawaii may choose to use state or federal exemptions.
Below are examples of commonly used Hawaii state exemptions:
| Type of Property | Amount You Can Protect (Individual / Joint) |
|---|---|
| Homestead – real property in Hawaii (one parcel) | $30,000 / $60,000 if head of family or 65+; $20,000 / $40,000 otherwise |
| Motor vehicle (one) | $2,575 / $5,150 |
| Jewelry and watches | $1,000 / $2,000 |
| Household goods, furnishings, clothing, books, and appliances | Reasonable value |
| Tools of trade, uniforms, or one fishing boat and nets | Reasonable value |
| Burial plot | 250 sq. ft lot |
| Proceeds from sale or insurance of exempt property (within 6 months) | Same protection as original exemption |
| Qualified retirement and ABLE accounts | 100% |
| Pensions and annuities (public employees, police, fire, teachers) | 100% |
| Workers’ compensation, disability, and unemployment benefits | 100% |
| Public assistance, TDI, and crime-victim compensation | 100% |
| Tenancy by the entirety (married debtors) | 100% (subject to federal limits) |
If you choose the federal exemptions, you can protect property such as a $31,575 homestead (or $63,150 joint), $5,025 vehicle, $16,850 in household goods, and up to $17,475 for any other property.
Because Hawaii debtors can choose either the set of federal exemptions or the state, a bankruptcy attorney can help determine which exemptions offer the best protection based on your situation and property values.
Steps and Local Requirements
Credit counseling. Before filing, you must complete a short credit counseling course from an approved agency. A second debtor education course is required before your debts can be discharged.
Means test. To qualify for Chapter 7, your household income must be below Hawaii’s median or pass a means test comparing income and expenses.
Filing fees. The filing fee is $338 for Chapter 7 and $313 for Chapter 13. If you can’t pay in full, you can request to pay in installments or apply for a waiver.
Meeting of creditors. About a month after filing, you’ll attend a brief “341 meeting.” This is not held before a judge. A bankruptcy trustee will confirm your identity and review your paperwork.
In Hawaii, meetings are typically held virtually or in person at the Honolulu courthouse, with arrangements for residents on other islands.
Local rules and forms. The court’s website lists all local rules and forms. Following them carefully helps your case move forward without delay.
What This Means for You
Filing for bankruptcy in Hawaii can give you a fresh financial start and immediate relief from creditor pressure. The process stops lawsuits, garnishments, repossessions, and foreclosures.
Most filers keep their homes, vehicles, and retirement accounts. Because Hawaii allows you to choose between state and federal exemptions, it’s important to consult a bankruptcy attorney before filing.
An attorney can help you:
- Choose between Chapter 7 and Chapter 13
- Decide whether to use Hawaii or federal exemptions
- Complete the required counseling and education courses
- File all forms correctly and meet local deadlines
With the right preparation and professional guidance, bankruptcy can help you regain control of your finances and begin rebuilding your future.
