Hawaii Bankruptcy
Hawaii Bankruptcy Law
Bankruptcy Code and Exemptions...
Although Federal Bankruptcy Code and U.S. Bankruptcy Laws apply to everyone, each state has its own Bankruptcy Code and Rules of Bankruptcy Property Exemption that apply specifically in that state.
Hawaii Bankruptcy Law
Hawaii State Bankruptcy Discharge and Pre-Bankruptcy Planning...
Successful bankruptcy filing in Hawaii is determined in large part by the quality of pre-bankruptcy planning. Since the advent of new Code amendments in late 2005, all debtors must traverse an even more dangerous threshold to qualify for federal bankruptcy relief.
Qualifying for Chapter 7 has become much more difficult under the new Code amendments. Chapter 13 plan terms have been extended for any one failing the means test, and new fines and penalties against debtors are now mandatory. For these reasons, the new law increases the complexity of cases somewhat, but with careful planning, all of these obstacles can be overcome with the assistance of talented legal counsel.
Hawaii state bankruptcy law also determines many legal issues which commonly arise. The Hawaiian state exemptions restrict the types and value amounts of property that may retained in Chapter 7, and to a lesser extent, also apply in Chapter 13 cases. State tort laws determine the propriety of potential claims for negligence, wrongful death, gross recklessness, and other personal injuries.
The Hawaiian Family Code determines child support liability and property ownership rights, and the Hawaiian Criminal Code determines many non-discharge debts (i.e. tax liability and claims based on alleged tax evasion). Overall, each Hawaii bankruptcy case is different because of the individual histories of debtors, yet also represents the melding of federal, state and local laws into a combined administration in federal court.
Hawaii Bankruptcy Exemptions
Following the enactment of recent new bankruptcy rules, a new legislative agenda is apparent. Hawaii bankruptcy exemptions were affected, yet status as an opt-out state remains in tact. The purpose of these new Code amendments was to prevent most people from filing Chapter 7. In addition, payments in Chapter 13 cases were increased by reducing the amount of permissible living expenses to a significantly lower, single national standard by federal preemption. As a result of only these two changes, at least two-thirds of the typical debtors who filed in the past will no longer be able to qualify for quick discharge, and now must participate in a repayment plan lasting three to five years.
Homestead Exemption Values...
Impact of Bankruptcy Rules change on the Hawaii Homestead Exemption Values. Hawaii homestead exemption, prided by the state statute, remains higher than the federal Code version (which is also available), and remains less than the federal preemption cap on maximum value.
Today, the highest allowable homestead value is the state statute, but over time this may change as a result of amendments to the Code.
Pre-Bankruptcy Planning and Preparation
Pre-bankruptcy planning is a delicate topic with many transactions prohibited, but with the assistance of a progressive bankruptcy attorney, other allowable exemptions may be identified.
In practice, most people who file for bankruptcy will actually improve their credit rating within 18 months or less. In fact, in a chapter 13 filing, credit will begin to improve once late payment reports stop, and secured loans and credit lines begin reflecting timely payments.
Overall, filing for bankruptcy can, for many Americans in many different circumstances, be an important and integral step toward financial recovery and new found fiscal stability. Ultimately, bankruptcy creates opportunities and improves net worth, so long as the decision to file was made wisely.
To learn more about Hawaii State Bankruptcy Exemptions, simply go to our U.S. Bankruptcy Exemptions page.
In most states you can legally protect your personal residence in a bankruptcy. The interesting thing is homeowners are treated differently from state to state.
Learn more about the Homestead Act and how it affects you.
Hawaii Bankruptcy Code
All Hawaii Bankruptcy cases are governed by Title 11 of the United States Bankruptcy Code, by U.S. Bankruptcy Rules, and by local Hawaii State Bankruptcy Rules promulgated by Hawaii court.
The US bankruptcy court websites generally have links to both, the Federal US Bankruptcy Rules and specific Hawaii Bankruptcy Code. Clerks in the bankruptcy courts will not give debtors, or even attorneys for debtors, legal advice, including advice about which bankruptcy rules apply to a given case.
Locate a US Bankruptcy Court in your federal judicial district.
Since US Bankruptcy Code and Hawaii Bankruptcy Rules are very technical, and since the case load in the US Bankruptcy Courts makes judges very unforgiving of mistakes or missed deadlines, it's highly recommended to seek the advice of an experienced Hawaii Bankruptcy Attorney and Certified Credit Counsellor.
The most recent Changes to the Bankruptcy Code and Bankruptcy Rules came about on April 20, 2005 as President Bush signed the Bankruptcy Abuse Prevention and Consumer Protection Act. This new Bankruptcy Law came into effect October 17, 2005.
Learn more about the 25 Most Recent Changes to Personal Bankruptcy Law and how they affect you.
