Start My Answer
loading...

Stop Wage Garnishment in Hawaii

Sarah Edwards | July 05, 2023

Sarah Edwards
Legal Expert
Sarah Edwards, BS

Sarah Harris is a professional researcher and writer specializing in legal content. An Emerson College alumna, she holds a Bachelor of Science in Communication from the prestigious Boston institution.

Edited by Hannah Locklear

Hannah Locklear
Editor at SoloSuit
Hannah Locklear, BA

Hannah Locklear is SoloSuit’s Marketing and Impact Manager. With an educational background in Linguistics, Spanish, and International Development from Brigham Young University, Hannah has also worked as a legal support specialist for several years.

Summary: Hawaii has complex wage garnishment laws that can take a big part of your income if you lose a debt lawsuit. Luckily, there are ways to avoid wage garnishment like responding to a lawsuit with an Answer or settling the debt before your court date. SoloSettle makes the debt settlement process easier.

A wage garnishment is a legal order that creditors use to seize part of your income after you stop paying your bills. Fortunately, creditors can’t garnish your wages simply because you missed a few payments. They must sue you and win their case before they can begin the wage garnishment process.

Of all fifty states, Hawaii has some of the most complex (and confusing) laws concerning wage garnishment. If you’re a resident of Hawaii, it’s smart to understand how these laws work if you’re facing a debt lawsuit or think a creditor may sue you in the future.

Avoid wage garnishment through debt settlement.

Settle with SoloSettle

Make an Offer

Hawaii’s wage garnishment laws are notoriously complex

While the federal government has provisions for wage garnishments, states can set their own limitations, too. States that establish wage garnishment limitations must choose limits equal to or less than the federal government’s rules. Under HI Rev Stat § 652-1, creditors may garnish wages according to the below amounts:

  • 5% of the first $100 in disposable earnings per month.
  • 10% of the next $200 in monthly disposable earnings.
  • 20% of all sums above $200 monthly.

However, before applying the Hawaii rules, the employer must compare the garnishment amount with the federal limitations on wage garnishment. Under 15 U.S. Code § 1673, the garnishment is the lesser of:

  • 25% of disposable earnings.
  • The amount weekly disposable earnings exceed 30 times the federal minimum wage, which is currently $7.25 hourly.

In both the federal and Hawaii limitations on wage garnishments, disposable earnings are equal to the individual’s earnings after any required government withholdings like federal and state taxes.

Voluntary withholdings, like deductions for retirement accounts and healthcare and life insurance plans, are not part of the mandatory exclusions. You cannot deduct them from your disposable earnings.

As you can see, the rules for calculating wage garnishment in Hawaii aren’t straightforward. Let’s consider an example of how wage garnishment works in Hawaii so that you can see the calculation process.

Example: Ross has a credit card with Tulip Bank with a $2,295 balance. He stopped making payments a few months ago when he had a major car repair bill. Tulip Bank decided to sue him for the outstanding balance and won the case. Now, it wants to garnish Ross’s salary. Ross’s monthly disposable earnings are $4,000. Under Hawaii’s guidelines, he’ll pay ($100 x 5%) + ($200 x 10%) + ($3,700 x 20%), or $765. Under federal guidelines, he would pay 25% of his disposable earnings, or $1,000 per month. The other federal alternative is about $3,130 per month, or $782.50 per week, calculated by $1,000 - (30 x $7.25). In this example, the Hawaii wage garnishment applies because it’s the lesser of the state and federal limitations. Ross will pay $765 for three months until he pays off the debt.


Let’s look at another example to see when the federal guidelines would apply for wage garnishment in Hawaii.

Example: A payday loan company, Yes Payday, is suing Chandler in Hawaii for a $900 loan he didn’t repay. Yes Payday wins its lawsuit, and the court awards a judgment it can use to garnish Chandler’s wages. Chandler has $240 in weekly disposable earnings, or about $960 monthly. Under the Hawaii guidelines, Chandler would pay ($100 x 5%) + ($200 x 10%) + ($660 x 20%), or $157 monthly. Under the federal guidelines, Chandler would pay 25% of his weekly earnings, or $60 weekly. The other federal alternative is $240 - (30 x $7.25 per hour), or $22.50 weekly. When converted into monthly amounts, the federal options are about $240 or $90 monthly. Since the federal amount of $90 monthly is less than the $157 under Hawaii state guidelines, the federal guidelines are appropriate to the case. Chandler will pay $90 monthly to Yes Payday under wage garnishment until he fully satisfies the debt in ten months.


Wage garnishment in Hawaii isn’t automatic

A creditor cannot garnish your wages unless it obtains a monetary judgment against you. To get a judgment, it must sue you in court. If you receive a Court Summons for unpaid debt, you shouldn’t ignore it. You’ll need to take specific steps to protect yourself.

First, review the contents of the Summons. It will include your creditor’s Complaint, which will list its grievances against you. The grievances will consist of the amount you owe and information about your account. If you find any inaccuracies, note them on your account statement.

Your next step is to file an Answer. An Answer is your formal response to the court and your creditor. Filing an Answer ensures that your creditor can’t ask the judge to grant a default judgment against you. Instead, the judge must review your defense before deciding on the outcome of your case.

If you’ve never filed an Answer, watch SoloSuit’s video explaining the process.

Next, you’ll want to resolve the debt before your court date. You can either repay the debt entirely or attempt to settle it.

Paying your debt off before your court date stops the lawsuit in its tracks. Your creditor must drop its case since there’s nothing to sue you for. There will be no judgment against you; you won’t need to worry about wage garnishment.

However, a settlement might be the better option if you don’t have enough money to pay off your debt.

Avoid wage garnishment through debt settlement

In a settlement, you offer the creditor a portion of the obligation in a lump-sum payment. If the creditor accepts your offer and signs an agreement that releases you from the remainder of the debt, it must drop the lawsuit against you.

To learn more about how to settle your debt in Hawaii, check out this video:

SoloSettle, powered by SoloSuit, is a tech-based approach to debt settlement. Our software helps you send and receive settlement offers until you reach an agreement with the collector. Once an agreement is reached, we’ll help you manage the settlement documentation and transfer your payment to the creditor or debt collector, helping you keep your financial information private and secure.

Re quest a hearing to stop wage garnishment

If you think your wages are being wrongfully garnished in Hawaii, you can file a motion to dissolve or modify the garnishment, according to HI Rev Stat § 652-1.5(f). If the court determines there are any issues with the current garnishment, it will be dissolved. If, however, the court rules that the creditor’s claim is valid, the garnishment order will remain in effect.

Don’t allow a creditor to garnish your wages

A wage garnishment can severely dent your monthly income, making it hard to afford your other obligations, like rent and groceries. You can avoid wage garnishment by resolving your debt before your court date. If you no longer owe the debt, there is no basis for a case against you.

SoloSettle helps people avoid a monetary judgment through debt settlement — try it today!

What is Solo?

Solo makes it easy to resolve debt with debt collectors.

You can use SoloSuit to respond to a debt lawsuit, to send letters to collectors, and even to settle a debt. SoloSuit's Answer service is a step-by-step web-app that asks you all the necessary questions to complete your Answer. Upon completion, we'll have an attorney review your document and we'll file it for you.

SoloSettle can help you contact your debt collector or creditor and negotiate the debt to settle for less, all online. It simplifies and streamlines the process to settling your debt.

No matter where you find yourself in the debt collection process, Solo is here to help you resolve your debt.

>>Read the FastCompany article: Debt Lawsuits Are Complicated: This Website Makes Them Simpler To Navigate

>>Read the NPR story on SoloSuit. (We can help you in all 50 states.)

How to Answer a Summons for debt collection in all 50 states

Here's a list of guides on how to respond to a debt collection lawsuit in each state:

The Ultimate 50 State Guide

Guides on how to resolve debt with every debt collector

Are you being sued by a debt collector? We’re making guides on how to resolve debt with each one.

Resolve your debt with your creditor

Some creditors, banks, and lenders have an internal collections department. If they come after you for a debt, Solosuit can still help you respond and resolve the debt. Here’s a list of guides on how to resolve debt with different creditors.

Settle your medical debt

Having a health challenge is stressful, but dealing medical debt on top of it is overwhelming. Here are some resources on how to manage medical debt.

Guides on arbitration

If the thought of going to court stresses you out, you’re not alone. Many Americans who are sued for credit card debt utilize a Motion to Compel Arbitration to push their case out of court and into arbitration.

Below are some resources on how to use an arbitration clause to your advantage and win a debt lawsuit.

Stop calls from debt collectors

Do you keep getting calls from an unknown number, only to realize that it’s a debt collector on the other line? If you’ve been called by any of the following numbers, chances are you have collectors coming after you, and we’ll tell you how to stop them.

Federal debt collection laws can protect you

Knowing your rights makes it easier to stand up for your rights. Below, we’ve compiled all our articles on federal debt collection laws that protect you from unfair practices.

Get debt relief in your state

We’ve created a specialized guide on how to find debt relief in all 50 states, complete with steps to take to find relief, state-specific resources, and more.

Debt collection laws in all 50 states

Debt collection laws vary by state, so we have compiled a guide to each state’s debt collection laws to make it easier for you to stand up for your rights—no matter where you live.

Statute of limitations on debt state guides

Like all debt collection laws, the statute of limitations on debt varies by state. So, we wrote a guide on each state’s statutes. Check it out below.

Statute of Limitations on Debt Collection by State (Best Guide)

Check the status of your court case

Don’t have time to go to your local courthouse to check the status of your case? We’ve created a guide on how to check the status of your case in every state, complete with online search tools and court directories.

How to stop wage garnishment in your state

Forgot to respond to your debt lawsuit? The judge may have ordered a default judgment against you, and with a default judgment, debt collectors can garnish your wages. Here are our guides on how to stop wage garnishment in all 50 states.

Other wage garnishment resources

How to settle a debt in your state

Debt settlement is one of the most effective ways to resolve a debt and save money. We’ve created a guide on how to settle your debt in all 50 states. Find out how to settle in your state with a simple click and explore other debt settlement resources below.

How to settle with every debt collector

Not sure how to negotiate a debt settlement with a debt collector? We are creating guides to help you know how to start the settlement conversation and increase your chances of coming to an agreement with every debt collector.

Other debt settlement resources

Personal loan and debt relief reviews

We give a factual review of the following debt consolidation, debt settlement, and loan organizations and companies to help you make an informed decision before you take on a debt.

How to repair and improve your credit score

Debt has a big impact on your credit. Below is a list of guides on how to repair and improve your credit, even while managing major debt.

How to resolve student loan debt

Struggling with student debt? SoloSuit’s got you covered. Below are resources on handling student loan debt.

Civil law legal definitions

You can represent yourself in court. Save yourself the time and cost of finding an attorney, and use the following resources to understand legal definitions better and how they may apply to your case.

Get answers to these FAQs on debt collection

How-to debt guides

Learn more with these additional debt resources

It only takes 15 minutes.

And 50% of our customers' cases have been dismissed in the past.


"Finding yourself on the wrong side of the law unexpectedly is kinda scary. I started researching on YouTube and found SoloSuit's channel. The videos were so helpful, easy to understand and encouraging. When I reached out to SoloSuit they were on it. Very professional, impeccably prompt. Thanks for the service!" - Heather



Get Started

Contents