Select an option below to continue reading this premium story.
Already a Honolulu Star-Advertiser subscriber? Log in now to continue reading.
The downward trend in Hawaii bankruptcy filings maintained its momentum in April, with the number of new cases declining by 21 percent from the same month a year ago, according to a report Friday from U.S. Bankruptcy Court.
The number of bankruptcy filings fell to 162 in April from 206 in April 2013. It was the 10th consecutive monthly decline in bankruptcies on a year-over-year basis. The April total was one less than in March.
SEEKING RELIEF Bankruptcy filings in April fell from a year ago:
|
2014 |
2013 |
PCT. CHANGE |
Chapter 7 |
112 |
157 |
-28.7% |
Chapter 11 |
0 |
3 |
—— |
Chapter 13 |
50 |
46 |
8.7% |
Total |
162 |
206 |
-21.4% |
» 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
|
Bankruptcy filings have been on a downward trend since early 2011, tracking improvements in Hawaii’s job market and the broader economy. At their peak, bankruptcy cases averaged 330 a month in 2010 as the local economy recovered from the 2008-2009 recession.
Around the state, bankruptcies in Honolulu County fell by 18 percent to 99 cases in April. Maui County experienced a 55 percent decline to 25 cases. Bankruptcy filings rose by 30 percent to 26 cases in Hawaii County and by 20 percent to 12 cases in Kauai County.
By category the biggest drop was in Chapter 7 liquidation filings, which fell to 112 cases in April — a 29 percent decline from a year earlier.
Bankruptcy filings typically decline as economic conditions improve.
That has been the case in Hawaii, where the unemployment rate has fallen along with consumer debt loads over the past few years.
The state Department of Business, Economic Development and Tourism is forecasting Hawaii’s inflation-adjusted economic growth rate to accelerate from 4.2 percent in 2013 to 4.7 percent in 2014. The unemployment rate, which averaged 4.7 percent in 2013, is forecast to fall to 4.2 percent in 2014.