Bankruptcy exemptions are rules that exempt certain types and amounts of property from being sold or used to satisfy the claims of debtors in your bankruptcy case. Each state has a set of bankruptcy exemptions that you can use to protect your property while going through bankruptcy.

Federal law also provides a set of bankruptcy exemptions. Your state’s law will determine whether you can choose the federal bankruptcy exemptions, or if you must use your state’s bankruptcy exemptions. But if your state’s law allows you to choose between the two sets of bankruptcy exemptions, you must choose one or the other, and cannot choose exemptions from both your state and the federal exemptions.

In Hawaii, bankruptcy exemptions play a crucial role in protecting certain assets of individuals filing for bankruptcy. Hawaii has its own set of bankruptcy exemptions that residents may use to safeguard various types of property, such as homestead, personal property, insurance, pensions, public benefits, tools of trade, wages, and miscellaneous items. Hawaii does not allow debtors to use the federal bankruptcy exemptions; instead, they must use the state's exemptions. However, Hawaii residents can use the federal non-bankruptcy exemptions alongside the state exemptions. These federal non-bankruptcy exemptions can protect such things as federal retirement accounts and veteran's benefits. It's important for individuals considering bankruptcy in Hawaii to review the specific state exemptions and consult with an attorney to understand how their assets would be affected.