Sued for Debt in Hawaii? Here's What to Do Next

20 days from service to file your Answer.

6 years for all contract types.

Yes, but the first $100 per week is exempt. Federal limits also apply.

Small claims for up to $5,000. District court for larger civil claims.

Hawaii's statute of limitations is six years for both written and oral contracts under HRS § 657-1, which is one of the longer limits in the country. The clock starts running on the date of the last payment or the date the account was charged off, whichever is later for most credit-card accounts. If you are sued after six years, statute of limitations is an affirmative defense you must plead in your answer under Hawaii Rules of Civil Procedure Rule 8(c), or you waive it. Filing suit on a time-barred debt can also support an unfair-practices counterclaim under HRS § 480-2 and a federal FDCPA claim under 15 U.S.C. § 1692e(2) for misrepresenting the legal status of the debt. Partial payment or written acknowledgment can restart the clock under HRS § 657-15, so be careful before saying anything in writing or sending any amount.

Hawaii follows federal Consumer Credit Protection Act limits at 15 U.S.C. § 1673, allowing creditors to garnish the lesser of 25 percent of disposable earnings or the amount by which weekly disposable earnings exceed 30 times the federal minimum wage. Hawaii's wage-garnishment statute at HRS § 652-1 also limits the percentage that can be garnished based on income brackets and provides additional protection for low earners. Social Security, SSI, VA benefits, unemployment, workers compensation, and most retirement income are exempt under federal law and HRS § 651-121 et seq. You raise an exemption by filing a claim with the court promptly after the wage assignment is served on your employer. Even after a judgment is entered, your employer cannot fire you because of one garnishment under federal law at 15 U.S.C. § 1674.

Under HRS Chapter 443B, anyone collecting consumer debts in Hawaii must be licensed as a collection agency through the Department of Commerce and Consumer Affairs. HRS § 443B-19 makes unlicensed collection activity unlawful, and consumers have argued in Hawaii state and federal courts that unlicensed collectors cannot sue. You can check whether a collector is licensed by searching the DCCA Professional and Vocational Licensing database at https://cca.hawaii.gov/pvl. If a collector is not licensed, you can raise it as a defense in any lawsuit they bring and can complain to the Office of Consumer Protection at 1-844-808-3222. Combining a licensing challenge with a federal FDCPA claim under 15 U.S.C. § 1692e(5) for threatening unlawful action is a common defense strategy.

After a creditor obtains a judgment in Hawaii, they can apply for a writ of execution under HRS § 651-31 directing the sheriff to garnish bank accounts or seize other personal property. The bank will freeze funds up to the judgment amount once the writ is served. Funds traceable to Social Security, SSI, VA benefits, unemployment compensation, and child support are exempt under federal law and HRS § 651-121. Most retirement accounts under HRS § 651-124 and a homestead-related personal-property exemption under HRS § 651-121 are also protected. You preserve these protections by filing a claim of exemption with the court promptly after the bank notifies you that funds were frozen. Most banks will hold the funds for a short window before turning them over, which gives you time to file.

If you are sued in Hawaii district court for a claim under $40,000, you must file a written answer or appear at the return date listed on the summons under District Court Rules of Civil Procedure Rule 4. Failing to appear or answer can result in default judgment under Rule 55. In your answer, you should deny the allegations you do not know to be true, demand strict proof of the debt and any assignment, and assert affirmative defenses including statute of limitations under HRS § 657-1, lack of standing of the assignee, unlicensed-collection activity under HRS § 443B-19, and any HRS § 480-2 or FDCPA counterclaim. Demand the original cardholder agreement and a full chain of assignment in discovery. Hawaii district court forms are available through the Hawaii State Judiciary website.