Hawaii bankruptcy filings continued their downward trend in September and remain on pace to reach their lowest yearly total since before the recession.

There were just two fewer filings last month than in September 2013, but that was enough to mark the 15th consecutive year-over-year monthly decline. There were 151 filings, down from 153 a year ago, according to data released Wednesday from U.S. Bankruptcy Court.

Hawaii bankruptcy filings have been flat or down for 30 months in a row. The only month when they did not fall was June 2013 when the number of cases — 185 — matched the total of June 2012.

But Honolulu bankruptcy attorney Ed Magauran said the numbers may be somewhat misleading because there are many Hawaii consumers still mired in unmanageable debt.

"The economy is getting better, but I do think that there are still lots and lots of people who can’t pay their debts," Magauran said. "Since the financial crisis, I think the banks have made a conscious decision not to foreclose on people. I routinely receive calls from people who have not paid their mortgages for several years and they’re beginning to hear from the banks. Before the financial crisis, if you were two or three months behind on your mortgage, you could be guaranteed that a foreclosure action would commence."

Magauran said the banks have decided not to foreclose because it’s better for them.

"If there are tons of foreclosures, they would flood the market and make the prices go down, which would put more people underwater and jeopardize (the banks) being paid," he said.

Through the first nine months of this year, there have been 1,329 bankruptcy filings, or an average of about 148 a month. At that pace, 2014 would end with 1,776 filings, which would be the lowest total since 1,381 were filed in 2007 — the year before the 18-month recession began. It also would mark the fourth year in a row that bankruptcies had declined from the previous 12 months.

At their recent peak in 2010, bankruptcy cases averaged 330 a month and hit 3,954 for the year as the local economy recovered from the 2008-2009 recession.

Magauran said it’s important that consumers who are in debt seek the free advice of a bankruptcy attorney before taking actions that could hurt them further financially.

"If you owe somebody a million dollars and they never ask for it, then 99 out of 100 people are not going to file a bankruptcy," Magauran said. "People file bankruptcy when their backs are against the wall and when they feel they have no other options. … There is still some kind of feeling that you must avoid a bankruptcy at all costs, but my thing is if you’re in money trouble, why not talk to a bankruptcy attorney. It’s free and you can do whatever you want with the information.

"It’s an option that people refuse to look at until they have no choice, and the worst things you see are people taking out their 401(k) money where they have to pay taxes on the money and a penalty on the early withdrawal, whereas if they had considered a bankruptcy they could have kept that 401(k) money and dumped their debt because a 401(k) is exempt in bankruptcy. There’s lots and lots of sleepless nights that could be avoided if people knew their options."

In September, the most common type of bankruptcy — Chapter 7 liquidation — dropped 6.2 percent to 106 from 113.

However, Chapter 13 filings, which allow individuals with regular sources of income to set up plans to pay creditors over time, rose 15.8 percent to 44 from 38.

The other major type of filing, Chapter 11, had just one case last month when the parent company of Bob’s Big Bear Diner in Waipahu Town Center filed for financial protection. Chapter 11 filings allow a business to reorganize. There were two Chapter 11 filings in September 2013.

Across the state, September bankruptcies rose in two counties and fell in two others. In Honolulu, filings rose 9.6 percent to 103 from 94 and climbed 26.7 percent in Hawaii County to 19 from 15. However, Maui County cases fell 25 percent to 24 from 32, and Kauai cases dropped 58.3 percent to five from 12.