Hawaii bankruptcies up 10.5 percent in March

Statewide bankruptcies rose for the second time in three months in March despite continuing signs that the economy remains on strong footing.

The 126 filings last month were 10.5 percent higher than the 114 in the year- earlier period and the highest number in five months, according to data released Monday by the U.S. Bankruptcy Court, District of Hawaii.

Hawaii’s unemployment rate continues to hover at an all-time low of 2.1 percent, visitor arrivals and spending both generated double-digit percentage increases in February and hiring in the construction sector remains steady.

Bankruptcies in the state have decreased seven years in a row, but through three months this year the 338 cases are six more than during the same period a year ago.

In March, Chapter 7 liquidation — the most common type of bankruptcy — jumped 12.3 percent to 91 compared with 81 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, rose 9.4 percent to 35 from 32.

There were no Chapter 11 filings last month or in March 2017. Chapter 11 filings typically involve businesses reorganization.

However, there was one Chapter 12 case (for family farmers and fishermen) in March 2017. There were no such cases last month.

Across the state, the number of cases filed fell in three of the four major counties. Hawaii County filings declined to seven from 11, Maui County filings dropped to 15 from 22 and Kauai County filings ticked down to five from six. However, Honolulu County filings rose to 99 from 75.