Hawaii bankruptcy filings remained at historically low levels last month as they fell 8.3 percent to the smallest July total in 10 years.
Statewide cases declined to 111 from 121 in the year-earlier period, according to data released last week by the U.S. Bankruptcy Court, District of Hawaii. It was the fewest cases in July since 108 were filed in 2007.
“It’s probably going to keep dropping because the economy is getting better,” Honolulu bankruptcy attorney William Bullard said Tuesday. “There’s not as many foreclosures and everything is coming down.”
Bankruptcy cases have been flat or down from the year-earlier period for 69 of the past 76 months. On an annual basis, bankruptcies have declined for six straight years since 2010 amid a solid state economy that has been bolstered by record tourist arrivals, low unemployment, a booming construction industry and record-high housing prices.
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Bankruptcy filings in July fell from a year ago.
2017 2016 PCT. CHANGE
Chapter 7 73 84 -13.1%
Liquidation
Chapter 11 0 1 0.0%
Business reorganization
Chapter 13 38 36 5.6%
Individuals with regular sources of income set up plans to pay creditors over time
Total 111 121 -8.3%
Source: U.S. Bankruptcy Court, District of Hawaii
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Through the first seven months of this year, there have been 761 cases compared with 810 during the same period in 2016. At that pace there will be 1,305 bankruptcy cases this year — the fewest since 955 were filed in 2006, when the total was artificially low because of a major change in the bankruptcy law during the preceding October. The peak number of cases since 2006 was 3,954 in 2010.
Bullard said the reasons for the bankruptcy filings that he handles vary widely.
“I get a lot of people with medical issues, or they lost their job, or they were irresponsible when they were younger,” he said. “It’s almost as varied as there are people. No two clients are alike. You can find similarities, but for the most part everybody has their own story.”
In last month’s filings, Chapter 7 liquidation — the most common type of bankruptcy — fell 13.1 percent, to 73 from 84 in the year-earlier period.
Chapter 13 filings, which allow individuals with regular sources of income to set up plans to make installment payments to creditors over three to five years, edged up 5.6 percent, to 38 from 36.
There was no Chapter 11 reorganization filing last month compared with one in the year-earlier period. Chapter 11 filings typically involve businesses.
Across the state, the number of cases fell from the year-earlier period in three of the four major counties. Hawaii County filings declined to 11 from 13, Maui County filings plunged by more than half to 14 from 29 and Kauai County filings dipped to three from four. Bankruptcies in Honolulu County increased to 83 from 75.
