What are the different types of bankruptcy exemptions?

In Hawaii, there are several types of bankruptcy exemptions that one may avail themselves of when filing for bankruptcy. The most common type of exemption is the homestead exemption, which is the protection of a portion of the debtor’s assets from seizure by creditors. This exemption protects a debtor’s residence, whether it is a house, condominium, or apartment, from seizure. The homestead exemption also applies to mobile homes, so long as the debtor is living in it when the bankruptcy is filed. The second type of bankruptcy exemption is the wildcard exemption which is the protection of a certain amount of assets from seizure. This amount varies from state to state and in Hawaii, it is currently set at $20,000. The wildcard exemption can be used to protect any asset, or any combination of assets, including cash, jewelry, vehicles, and other personal property. Finally, there are also exemptions for personal items, such as clothing, beds, religious items, tools of trade or profession, and family portraits. These exemptions are limited to certain dollar amounts, so it is important for a debtor to research the maximum amounts allowed. In addition to the general exemptions, Hawaii also offers special types of exemptions that are tailored to specific situations, such as exemptions for veterans, members of the armed services, and residents of rural areas. These exemptions may be available only in certain circumstances, so it is important to research and understand the exact parameters of the exemption before filing for bankruptcy.

Related FAQs

How does an unsecured creditor collect funds?
What is validation of debt?
What is a hardship payment plan?
What is the statute of limitations on debts?
What is a loan shark?
What is garnishment?
What is the statute of limitations for filing a lawsuit?
What are the advantages of using a debt counselor?
What is the purpose of debtor and creditor law?
What is a judgment?

What are the different types of bankruptcy exemptions?

Related FAQs

Related Blog Posts