The number of bankruptcy cases filed in Hawaii fell in April for the 14th consecutive month, following a downward trend in filings nationally.
There were 254 cases filed in Hawaii in April, down 26 percent from 342 the same month a year earlier, according to data released Tuesday by U.S. Bankruptcy Court.
Bankruptcy filings in Hawaii have been trending lower since peaking at 3,954 cases in 2010. The number of cases fell in 2011 for the first time in five years, dropping 16 percent from 2010. Nationally, bankruptcy cases fell 12 percent last year, also marking the first drop in five years.
Through the first four months of this year, bankruptcy filings were down 22 percent from the same time in 2011.
Bankruptcies fell across the state. In Honolulu County the number of cases fell to 157 in April, a 22.7 percent drop from 203 the same month last year.
Filings fell to 38 in Maui County, a 44.9 percent decline from 69 filings in April 2011. Filings in Hawaii County fell 4.3 percent to 45 cases, and in Kauai County they fell 39.1 percent to 14 cases.
Fitch Ratings is predicting bankruptcies nationwide will fall by another 4 to 5 percent in 2012 as consumers continue to pay down debt and economic conditions improve.
The drop in bankruptcy filings in Hawaii has been accompanied by declining credit card debt. The most recent data by credit-scoring website Credit Karma showed that average credit card debt in Hawaii dropped 4 percent in March to $7,362, compared with the same month in 2011. The average amount outstanding on an auto loan fell to $15,410 in March, down 2.5 percent from March 2011. The average credit score for Hawaii residents improved slightly to 676 in March from 674 the same month a year ago.
A separate report from credit reporting agency TransUnion said Hawaii’s credit picture should benefit in 2012 from improvements in employment, housing prices and consumer confidence. Hawaii’s 60-day mortgage delinquencies, precursors to foreclosure, are projected to drop to 3.49 percent by the end of 2012 from 5.12 percent at the close of last year, according to TransUnion.
SEEKING RELIEF Bankruptcy filings in April rose from a year ago:
|
2012 |
2011 |
PCT. CHANGE |
Chapter 7 |
201 |
260 |
-22.7% |
Chapter 11 |
1 |
6 |
-83.3% |
Chapter 13 |
52 |
76 |
-31.6% |
Total |
254 |
342 |
-25.7% |
>> Chapter 7: Liquidation >> Chapter 11: Business reorganization >> Chapter 13: Individuals with regular sources of income set up plans to pay creditors over time.
Source: U.S. Bankruptcy Court, District of Hawaii
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