Hawaii Credit Card Debt: Statute of Limitations (2026)

How Hawaii’s 6-year statute of limitations works

Hawaii applies a 6-year statute of limitations to actions on written contracts, open accounts, and accounts stated under Hawaii Revised Statutes § 657-1. Credit card debt falls within either the written-contract or open-account category, both of which use the 6-year window. The Hawaii Supreme Court has consistently applied the 6-year period to credit card collection actions.

The clock starts on the date of default, generally the date of last payment or the date the first missed payment was due that ultimately led to charge-off, whichever is later. If you stopped paying a Chase card in January 2026 and never made another payment, the 6-year clock runs through January 2032. Any lawsuit filed after January 2032 is time-barred and dismissable on motion.

If you are sued in Hawaii District Court or Circuit Court on a credit card debt, the answer deadline is 20 days from service. Failure to file an answer results in a default judgment for the full balance plus court costs, attorney’s fees if provided in the cardholder agreement, and post-judgment interest at 10% per year under HRS § 478-3.

Real example timeline

Kalani stopped paying a $8,600 Capital One card in May 2020 after a job loss during the pandemic. The account charged off in November 2020 and was sold to LVNV Funding. LVNV sued in Honolulu District Court in July 2026, more than 6 years after the date of last payment. Kalani filed an answer raising the SOL defense. The court granted summary judgment for Kalani because the 6-year window under § 657-1 expired in May 2026, two months before the complaint was filed.

Sliding-scale wage garnishment under HRS § 652-1

Hawaii is one of the few states with a tiered wage garnishment cap that provides extra protection to lower-income workers. Under HRS § 652-1, monthly wage garnishment for credit card and similar debts is capped at:

• 5% of the first $100 of monthly disposable earnings
• 10% of the next $100 of monthly disposable earnings
• 25% of monthly disposable earnings above $200

Federal Title III still applies as a 25% ceiling on disposable earnings, but the Hawaii tiered structure provides genuinely lower caps on the bottom of the wage scale. For a worker earning $1,500/month in disposable wages, the calculation is:

• 5% of $100 = $5
• 10% of $100 = $10
• 25% of $1,300 = $325
• Total: $340/month, well below the flat 25% federal cap on $1,500 ($375).

Settlement math for a typical Hawaii credit card balance

The pillar payoff calculator models the same balance across three paths: continue minimums, settle for a lump sum, or aggressive payoff. Hawaii’s 10% post-judgment interest rate and high cost of living often make pre-judgment settlement attractive even when garnishment exposure is moderate.

Typical scenario: $10,200 balance, 25.99% APR, minimum payment of 2% of balance.

• Path 1, minimums only: 30 years to payoff, $18,200 in interest paid.
• Path 2, settle pre-judgment at 40%: $4,080 lump sum, account closed, charge-off remains on credit report 7 years from first delinquency under the Fair Credit Reporting Act § 605.
• Path 3, settle pre-judgment at 50% over 12 months: $5,100 paid in installments, similar credit impact.

Comparison with other Pacific states

When you are functionally judgment-proof in Hawaii

If your only income is Social Security, SSI, Veterans Affairs, public assistance, or unemployment, those funds are exempt under 42 U.S.C. § 407 and Hawaii-specific exemptions in HRS § 651-121. The federal 2-month rule under 31 CFR Part 212 protects 2 months of federal benefit deposits automatically without filing a claim.

How the tiered wage garnishment math works in practice

For a worker in Honolulu earning $4,000/month gross with $800 in mandatory deductions ($3,200 monthly disposable):

• 5% of first $100 = $5
• 10% of next $100 = $10
• 25% of remaining $3,000 = $750
• Total Hawaii cap: $765/month

Federal Title III cap for the same worker would be 25% of $3,200 = $800/month. Hawaii’s structure provides moderate additional protection at the higher end (about 4% less). For lower-wage workers, the protection is much more substantial because the first $200 of monthly disposable earnings is garnished at only 5% to 10% rather than 25%.

The math for a worker at $1,800/month disposable:

• 5% of first $100 = $5
• 10% of next $100 = $10
• 25% of remaining $1,600 = $400
• Total Hawaii cap: $415/month vs federal cap of $450/month (25% of $1,800).

Homestead exemption is modest despite high property values

Under HRS § 651-92, the Hawaii homestead exemption is $30,000 if the debtor is the head of a family or age 65 or older, and $20,000 otherwise. These amounts are small compared with Hawaii’s median home value (the highest in the United States) and create real forced-sale risk for homeowners with substantial equity facing credit card judgments.

The exemption applies automatically; no declaration is required. A married couple where both qualify as head of family or age 65+ may share the combined exemption depending on title and household composition.

For Hawaii homeowners with significant equity, the modest homestead exemption is an important consideration. Settling pre-judgment, exploring bankruptcy options where appropriate, or other asset-protection planning may be worth professional consultation when home equity substantially exceeds the exemption.

Hawaii Unfair and Deceptive Acts and Practices Act remedies

The Hawaii Unfair and Deceptive Acts and Practices Act (HRS § 480-2 et seq.) prohibits unfair methods of competition and unfair or deceptive acts in trade or commerce, including consumer debt collection. Violations give consumers private rights of action with the greater of treble damages or $1,000 statutory damages, plus attorney’s fees under HRS § 480-13.

The act covers collection agencies, debt buyers, and original creditors collecting their own debts. Specific prohibited practices include misrepresentation of the character or legal status of a debt, threats of action that cannot be legally taken, and harassment. The Hawaii Office of Consumer Protection within the Department of Commerce and Consumer Affairs accepts complaints and has enforcement authority.

Collection agency licensing under HRS Chapter 443B

Collection agencies operating in Hawaii must be licensed under HRS Chapter 443B administered by the Hawaii Department of Commerce and Consumer Affairs. Licensing requires a $25,000 surety bond, fingerprinting of principals, financial responsibility evidence, and ongoing compliance with both the federal FDCPA and Hawaii-specific rules.

Debt management firms operating in Hawaii register under Hawaii Revised Statutes Chapter 446 with similar bonding and compliance requirements. Out-of-state debt-relief firms targeting Hawaii residents are also subject to the federal Telemarketing Sales Rule (16 CFR § 310.4(a)(5)) barring advance fees before settlements are reached. Verify any firm at the DCCA license search before paying.

Authoritative sources

• Hawaii Revised Statutes § 657-1 (6-year SOL)
• Hawaii Revised Statutes § 651-92 (homestead exemption)
• Hawaii Revised Statutes § 652-1 (sliding wage garnishment)
• Hawaii Revised Statutes § 480-2 (Unfair and Deceptive Acts and Practices)
• Hawaii Revised Statutes Chapter 443B (collection agencies)
• Hawaii Office of Consumer Protection
• Hawaii Department of Commerce and Consumer Affairs licensing
• CFPB time-barred debt guidance

Comparable states with different rules

• Alaska credit card debt laws (3-year SOL)
• California credit card debt laws (4-year SOL, community property)
• Washington credit card debt laws (6-year SOL, community property)
• Oregon credit card debt laws (6-year SOL)
• Nevada credit card debt laws (4-year SOL, $605,000 homestead)

Related tools

• Credit card payoff calculator to compare settlement vs minimums vs aggressive payoff
• Debt management plan calculator
• Can credit card debt garnish your wages?
• Can credit card debt be garnished from Social Security?

Frequently asked questions

What is the statute of limitations on credit card debt in Hawaii?

Hawaii has a 6-year statute of limitations on written contracts including credit card debt under Hawaii Revised Statutes § 657-1. The clock starts on the date of default, generally the date of last payment or the date the first missed payment was due that ultimately led to charge-off. The 6-year period also applies to open accounts and accounts stated under HRS § 657-1(1).

Can Hawaii creditors garnish my wages for credit card debt?

Yes, after a judgment, but the cap uses a sliding scale. Under HRS § 652-1, monthly wage garnishment is capped at 5% of the first $100, 10% of the next $100, and 25% of all wages above $200 per month, for a maximum effective rate of 25% on higher incomes. Hawaii’s sliding scale provides more protection to low-wage workers than the federal flat 25% cap. Federal Title III still applies as a ceiling.

What is Hawaii’s homestead exemption for credit card debt?

Under HRS § 651-92, the Hawaii homestead exemption is $30,000 of equity in a primary residence if the debtor is the head of a family or age 65 or older, and $20,000 otherwise. The exemption is automatic. A married couple where both spouses qualify as head of family or age 65+ may share the combined exemption depending on title. Hawaii’s homestead protection is among the smaller exemptions despite the state’s high property values.

What happens after Hawaii’s 6-year statute of limitations expires?

The debt becomes time-barred. A creditor can still ask you to pay and can still report the charge-off to credit bureaus for 7 years from first delinquency, but cannot sue you to collect. If you are sued on a time-barred debt in Hawaii, raise the statute of limitations as an affirmative defense in your answer to the complaint. A written acknowledgment or partial payment can revive a time-barred debt in Hawaii, so avoid both if the debt is approaching SOL.

Does Hawaii license debt relief companies?

Yes. Hawaii requires collection agencies to be licensed under HRS Chapter 443B administered by the Hawaii Department of Commerce and Consumer Affairs. Debt management firms separately register under Hawaii Revised Statutes Chapter 446. The Hawaii Unfair and Deceptive Acts and Practices Act (HRS § 480-2) gives consumers private rights of action against deceptive collection practices, with treble damages available for proven violations. Verify any firm at the DCCA license search before paying fees.