No matter where you file for bankruptcy, you have to follow federal law, as well as any county or state laws. Hawaii bankruptcy laws offer exemptions that you can choose to use instead of the federal exemptions. By understanding these exemptions, you can arm yourself with information to ensure that when you file for bankruptcy, you can get the most benefit possible. What are some of the Hawaii bankruptcy laws or exemptions that you should be aware of?
Your Home Exemptions
You can choose between the federal exemptions or the Hawaii exemptions. Federal law exempts any equity you may have in your property, including a co-op or mobile home, of up to $22,975. Hawaii bankruptcy law exempts a head of family or a person over 65’s property equity up to $30,000, and all others up to $20,000. This property cannot exceed 1 acre.
Personal Property Exemptions
Federal bankruptcy law exempts animals, clothing, crops, appliances, furnishings, household goods, books, and musical instruments with a value of up to $575 per item and up to $12,250 total. Any health aids, lost earnings payments, wrongful death recoveries, jewelry up to $1,550, a car value up to $3,675 and personal injury settlements of up to $22,975 are also exempt. Hawaii bankruptcy law exempts your needed appliances and furnishings, books, burial plots up to 250 square feet, clothing, housing down payments, jewelry up to $100 in value, a car up to $2575 in value and proceeds that you may have received for sold or damaged property. By evaluating your own personal property holdings, you can determine which exemptions will serve you best.
Tools of the Trade
Federal bankruptcy exemptions covers up to $2,300 in implements, tools, and books that you use for work, while Hawaii bankruptcy law exempts tools, implements, books, instruments, furnishings, fishing boats, nets, car, and other personal property you need to do your job.
There are many exemptions that are offered by both the federal laws and Hawaii bankruptcy laws. By doing your research beforehand, you can make sure that you will get the most benefit possible from filing for bankruptcy.