The number of Hawaii residents and businesses filing for bankruptcy fell sharply in October, according to a report released today by U.S. Bankruptcy Court, putting the state on track to record its third consecutive decline in filings.
There were 167 bankruptcies filed in October, down 27 percent from the same month a year ago. Bankruptcy filings declined 17 percent through the first 10 months of the year. Bankruptcies have fallen every year since peaking at 3,954 cases in 2010 during the last economic downturn.
Filings fell 19 percent on Oahu to 108 cases in October from 133 a year earlier. Hawaii County experienced a 55 percent decline to 14 cases from 31 cases during the same period last year. The number of filings in Maui County fell to 35 from 55, a decline of 36 percent. Bankruptcy cases in Kauai County fell to 10 in October from 11 a year earlier.
The bulk of the filings in September — 125 cases — were filed under Chapter 7 of the federal bankruptcy code, which calls for liquidation of a debtor’s assets. There were 39 filings under Chapter 13 and two under Chapter 11, and one under Chapter 12.