Hawaii bankruptcies are drying up as the economy continues growing at a modest pace.

Statewide filings declined 7.9 percent to 129 in June from 140 in the year-earlier period to mark the 51st straight month that bankruptcies have been flat or down, according to recent data released by U.S. Bankruptcy Court, District of Hawaii.

The decrease in bankruptcy filings coincides with an improving labor market that has seen the unemployment rate hold at 4.1 percent every month this year through May and stay at that level for seven of the last eight months since that time. The unemployment rate was at 5 percent as recently as February 2013.

Last month, Chapter 7 liquidation — the most common type of bankruptcy — fell 18 percent to 82 from 100. Chapter 13 filings, which allow individuals with regular sources of income to set up plans to pay creditors over time, rose 23.7 percent to 47 from 38. There were no Chapter 11 filings, which allow businesses to reorganize, in June compared with two in the year-ago period.

Statewide, bankruptcies fell in three of the four counties last month. Hono­­­lulu County bankruptcies rose to 86 from 76, but filings in Hawaii County dropped to 17 from 21, Maui County filings decreased to 21 from 34 and Kauai County filings dropped to five from nine.