Filing Chapter 7 Bankruptcy in Hawaii (2026)
Reviewed by DocDraft Legal Team · Hawaii · Last updated August 18, 2026
Chapter 7 bankruptcy is federal law, but the property you keep is set by the exemption list you choose. Hawaii is a choice state: a debtor filing here may elect either the federal 11 U.S.C. 522(d) exemptions or the Hawaii state exemptions, but not both. Hawaii's homestead under HRS 651-92 is capped at a modest $30,000 for a head of family or a filer age 65 or older and $20,000 for everyone else and is limited by land area to one acre, so many Hawaii filers choose the federal set instead. This page explains the choice, the Hawaii homestead, vehicle, and wage exemptions, the means-test median income, and the single federal court where Hawaii residents file. Chapter 7 discharges most unsecured debt but not most student loans, recent taxes, child support, or alimony.
Does Hawaii use state or federal bankruptcy exemptions?
Hawaii is a choice state. A debtor filing Chapter 7 in Hawaii may elect either the federal 11 U.S.C. 522(d) exemptions or Hawaii's state exemptions, but not a mix of the two. Because Hawaii's homestead cap under HRS 651-92 is low, many Hawaii filers choose the federal set instead of the state list.
Can I keep my house if I file Chapter 7 in Hawaii?
Often yes if your equity is modest. Hawaii's homestead under HRS 651-92 protects $30,000 for a head of family or a filer age 65 or older and $20,000 otherwise, limited to one acre. Because that cap is low, many Hawaii homeowners instead elect the larger federal 522(d) homestead to keep the house.
Can I keep my car if I file Chapter 7 in Hawaii?
Usually yes if your equity is limited. Hawaii exempts one motor vehicle up to $2,575 in equity over all liens under HRS 651-121(2). If you elect the federal set instead, 11 U.S.C. 522(d)(2) protects a larger vehicle amount, so filers with more car equity often prefer the federal exemptions.
What is the income limit to file Chapter 7 in Hawaii?
For cases filed on or after July 15, 2026, the U.S. Trustee median income figures for Hawaii are $85,254 for one earner, $106,202 for two, $123,454 for three, and $142,181 for four, adding $11,100 per additional person. At or below your household figure, you pass the first part of the means test.
Hawaii's Federal-or-State Choice, the HRS 651-92 Homestead, and the District of Hawaii Court
Hawaii is a bankruptcy choice state. Under 11 U.S.C. 522(b), a debtor filing here may elect either the federal 522(d) exemptions or the Hawaii state exemptions, but not both. The load-bearing state fact is that Hawaii's homestead is small: HRS 651-92 caps it at $30,000 for a head of a family or a filer who is age 65 or older and $20,000 for everyone else, and it is further limited by land area to one acre rather than by a large dollar figure. Because that state homestead is low and can be claimed by only one owner, many Hawaii homeowners elect the federal set, whose homestead adjusts for inflation and can be doubled by a married couple. Hawaii's other state figures are also modest: one motor vehicle up to $2,575 in equity under HRS 651-121(2), household furnishings and jewelry up to $1,000 under HRS 651-121, and tools of trade and retirement accounts under HRS 651-124. Wages already earned enjoy only limited protection under HRS 652-1. Hawaii is a single federal judicial district, so every resident files in the U.S. Bankruptcy Court for the District of Hawaii in Honolulu.
Relevant Laws
Hawaii Homestead Exemption (HRS 651-92)
Sets Hawaii's homestead exemption at $30,000 for a head of a family or a filer age 65 or older and $20,000 for everyone else, and limits it by land area to one acre. Because this cap is low, many Hawaii homeowners elect the federal homestead in Chapter 7 instead.
Hawaii Personal Property and Motor Vehicle Exemptions (HRS 651-121)
Lists Hawaii's personal property exemptions, including household furnishings and jewelry up to $1,000 and one motor vehicle up to $2,575 in equity over all liens under subsection (2). These modest figures are why some filers compare them against the federal 522(d) list.
Hawaii Tools of Trade and Retirement Exemptions (HRS 651-124)
Exempts tools, implements, and other property used in a trade or business, and protects benefits from pension and retirement plans. This is the statute that shields most Hawaii filers' retirement savings when they use the state exemption set.
Federal Bankruptcy Code Exemptions and Means Test (11 U.S.C. 522, 707)
The federal law behind Chapter 7. Section 522(b) lets a debtor in a choice state like Hawaii elect the federal 522(d) exemptions instead of the state set, and section 707(b) sets the means test measured against state median income.
Regional Variances
Hawaii Chapter 7 Exemption Table (State Set vs Federal Alternative)
Homestead
Hawaii (HRS 651-92): $30,000 for a head of family or a filer age 65 or older, $20,000 otherwise, limited to one acre and claimable by only one owner. Federal alternative (11 U.S.C. 522(d)(1)): a single inflation-adjusted homestead figure that a married couple can double, which is why many Hawaii filers choose the federal set.
Motor vehicle
Hawaii (HRS 651-121(2)): one motor vehicle up to $2,575 in equity over all liens and encumbrances. Federal alternative (11 U.S.C. 522(d)(2)): a larger inflation-adjusted vehicle amount. Equity above the chosen figure may be reachable by the trustee.
Wildcard
Hawaii has no general cash wildcard exemption in its state set. The federal alternative (11 U.S.C. 522(d)(5)) offers a wildcard usable in any property plus any unused portion of the federal homestead, another reason low-equity Hawaii filers often elect the federal exemptions.
Personal property
Hawaii (HRS 651-121): household furnishings, appliances, books, wearing apparel, and jewelry up to $1,000, plus one burial plot. The federal alternative (11 U.S.C. 522(d)(3)) exempts household goods and furnishings within an aggregate cap. You use one set, not both.
Wages
Hawaii (HRS 652-1): wages already earned get limited protection, and Hawaii garnishment rules cap what a creditor may take from disposable earnings. Unpaid earnings for services rendered in the past 31 days are generally exempt. The federal set instead relies on the 522(d)(5) wildcard for cash on hand.
Retirement and tools of trade
Hawaii (HRS 651-124): benefits from pension, annuity, and retirement plans are protected, along with tools, implements, and equipment used in a trade or business. The federal alternative (11 U.S.C. 522(d)(10) and (d)(6)) likewise exempts retirement funds and tools of the trade up to set amounts.
Suggested Compliance Checklist
Confirm the current Hawaii means-test median income
Before you file days after startingCheck your household size against the U.S. Trustee Hawaii median income figures in effect on your filing date, since these update periodically. For cases filed on or after July 15, 2026 the figures are $85,254 for one, $106,202 for two, $123,454 for three, and $142,181 for four, adding $11,100 per additional person.
Complete the pre-filing credit counseling course
Within 180 days before filing days after startingTake an approved credit counseling course from a provider authorized for the District of Hawaii and keep the certificate. You must file it with your petition. Skipping this can get your case dismissed before your debts are addressed.
Choose the federal or Hawaii exemption set and value your assets
Before preparing your schedules days after startingDecide between the federal 522(d) exemptions and the Hawaii state set. Because the HRS 651-92 homestead is capped at $20,000 or $30,000 and limited to one acre, value your home, vehicle, and personal property so you can see which list protects more. You must choose one set in full.
Prepare and file your petition and schedules
Filing day days after startingFile your petition, schedules, and exemption claims in the U.S. Bankruptcy Court for the District of Hawaii in Honolulu, which covers the entire state. Filing triggers the automatic stay that pauses collection and garnishment while your case proceeds.
Attend the 341 meeting and finish the debtor education course
Before discharge days after startingAttend the 341 meeting of creditors and answer the trustee's questions under oath, then complete the required post-filing financial management course and file the certificate. Both are required before the court will grant your discharge. An attorney can help with contested exemptions.
| Task | Description | Document | Days after starting |
|---|---|---|---|
| Confirm the current Hawaii means-test median income | Check your household size against the U.S. Trustee Hawaii median income figures in effect on your filing date, since these update periodically. For cases filed on or after July 15, 2026 the figures are $85,254 for one, $106,202 for two, $123,454 for three, and $142,181 for four, adding $11,100 per additional person. | - | Before you file |
| Complete the pre-filing credit counseling course | Take an approved credit counseling course from a provider authorized for the District of Hawaii and keep the certificate. You must file it with your petition. Skipping this can get your case dismissed before your debts are addressed. | - | Within 180 days before filing |
| Choose the federal or Hawaii exemption set and value your assets | Decide between the federal 522(d) exemptions and the Hawaii state set. Because the HRS 651-92 homestead is capped at $20,000 or $30,000 and limited to one acre, value your home, vehicle, and personal property so you can see which list protects more. You must choose one set in full. | - | Before preparing your schedules |
| Prepare and file your petition and schedules | File your petition, schedules, and exemption claims in the U.S. Bankruptcy Court for the District of Hawaii in Honolulu, which covers the entire state. Filing triggers the automatic stay that pauses collection and garnishment while your case proceeds. | - | Filing day |
| Attend the 341 meeting and finish the debtor education course | Attend the 341 meeting of creditors and answer the trustee's questions under oath, then complete the required post-filing financial management course and file the certificate. Both are required before the court will grant your discharge. An attorney can help with contested exemptions. | - | Before discharge |
Frequently Asked Questions
Hawaii is a choice state. Under 11 U.S.C. 522(b), a debtor filing Chapter 7 in Hawaii may elect either the federal 522(d) exemptions or Hawaii's state exemptions, but the two sets cannot be combined. Because Hawaii's state homestead cap is low, many filers here choose the federal exemptions rather than the state list.
Under HRS 651-92, Hawaii's homestead protects $30,000 in a home for a head of a family or a filer who is age 65 or older and $20,000 for everyone else. The exemption is also limited by land area to one acre. Because the dollar cap is low, many Hawaii homeowners elect the federal homestead instead.
Under HRS 651-121(2), Hawaii exempts one motor vehicle up to $2,575 in value over and above all liens and encumbrances on it. Equity above that amount may be reachable by the trustee. Filers with more car equity often prefer the federal 522(d)(2) vehicle exemption, which protects a larger figure adjusted for inflation.
No. Chapter 7 discharges most unsecured debt like credit cards and medical bills, but it does not erase most student loans, recent income taxes, child support, or alimony, and it will not discharge debts from fraud. Secured debts like a car loan remain unless you surrender the collateral or reaffirm the loan.
Retirement savings are well protected: HRS 651-124 exempts benefits from pension, retirement, and similar plans that Hawaii filers rely on. Wages already earned get only limited protection under HRS 652-1, and Hawaii's garnishment rules cap what a creditor can take from your paycheck. Comparing this to the federal set can affect which exemptions you choose.
Other Hawaii guides
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