What are the restrictions for filing for bankruptcy?

In Hawaii, there are certain restrictions that must be met before a person can file for bankruptcy. Generally, a person must pass a “means test” to qualify for Chapter 7 bankruptcy, which involves comparing the person’s income to the median income of a similar-sized household in the state. If the person’s household income is above the median, then they may not qualify for Chapter 7 and must file for either Chapter 13 or Chapter 11 bankruptcy. In addition, Chapter 7 filers must complete a pre-filing credit counseling course within six months of filing a bankruptcy claim. This course is designed to help filers understand the situation they are in and how to manage their finances in the future. Finally, Chapter 7 filers are only allowed to keep certain exempt property, such as furniture, clothing, and work tools, from liquidation. The exemption amount depends on the type of debt being discharged, the age of the debtor, and if the debtor is disabled. In summary, in order to file for bankruptcy in Hawaii, a person must pass a means test, complete a credit counseling course, and understand the types of property they are allowed to keep from liquidation.

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What are the restrictions for filing for bankruptcy?

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