Hawaii Debt Relief

Hawaii Credit Card Debt law limits the time in which creditors can file suit over unpaid open-ended debt to six years. This Statute of Limitations (SOL) begins the day the first payment was missed. Any subsequent partial payments made by the debtor cause the SOL to reset from the day the partial payment was made. The debtor has 20 days from the date of service to answer a summons. It is recommended that the answer be sent by certified mail.

Judgment Enforcement

Judgments hold a SOL of ten years with the option to renew an additional ten years. The judgment becomes a lien on the debtor’s real property. The judgment accrues 10 percent interest yearly. Hawaii’s limits wage garnishment to 5% of the first $100 in wages per month, 10% of the next $100, and 20% of any amounts exceeding $200. A property exemption is allowed up to $20,000 for individuals and $30,000 for the head of family or those over age 65, without limitation to the type of property.

Hawaiians should be cautious about contracts that may contain a “confession of judgment.” This kind of contract language takes away any defense the debtor may have in a lawsuit, putting in automatic judgment regardless of other circumstances. Hawaii only disallows such contract language for credit sales, door-to-door sales, employment agencies and residential rental agreements.

Debt Settlement

Debt Settlement is an option for avoiding property liens and wage garnishments. An alternative preferable to bankruptcy, Debt Settlement helps consumers to pay back debt interest free, giving them a say in how much they pay every month instead of leaving payment amounts up to the courts in wage garnishment orders.