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Hawaii bankruptcy filings plunged in April as low unemployment and a growing economy reduced the need for individuals and businesses to seek financial relief.
The number of filings last month declined 19.1 percent to 131 from 162 in the year-earlier period to mark the 49th straight month that bankruptcies have been flat or down, according to data released Friday by U.S. Bankruptcy Court, District of Hawaii.
A stronger labor market had contributed to the drop in bankruptcy filings. Hawaii’s unemployment rate in March was 4.1 percent, which ranks as the 10th lowest in the country.
Last month, Chapter 7 liquidation — the most common type of bankruptcy — fell 14.3 percent to 96 from 112. Chapter 13 filings, which allow individuals with regular sources of income to set up plans to pay creditors over time, fell 32 percent to 34 from 50. There were no Chapter 11 filings, which allow businesses to reorganize, in either April or the year-ago period. However, last month there was one Chapter 12 filing — used for the reorganization of family farms — by Honolulu-based Amko Fishing Co.
Statewide, bankruptcies fell last month in three of the four counties. Honolulu County bankruptcies dropped to 84 from 99, Kauai County filings dipped to eight from 12 and Hawaii County filings fell to nine from 26. In Maui County, filings rose to 30 from 25.
SEEKING RELIEF
Bankruptcy filings in April fell from a year ago:
|
2015 |
2014 |
Pct. Change |
Chapter 7 |
96 |
112 |
-14.3% |
Chapter 11 |
0 |
0 |
0.0% |
Chapter 12 |
1 |
0 |
— |
Chapter 13 |
34 |
50 |
-32.0% |
Total |
131 |
162 |
-19.1% |
>> Chapter 7: Liquidation >> Chapter 11: Business reorganization >> Chapter 12: Reorganization of family farms >> 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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