Hawaii Bankruptcy Exemptions
Recent new federal rule changes preempt Hawaii bankruptcy exemption values
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.
The impact of rules changes upon homestead exemption values
The 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.