Hawaii bankruptcies keep rising

Hawaii bankruptcies keep rising as consumers appear to continue overextending themselves amid a strong state economy.

The 143 filings in September marked the most for that month since 151 in 2014 and represented the seventh time in nine months this year that cases have exceeded the year-earlier totals, according to data released Monday by the U.S. Bankruptcy Court, District of Hawaii. Last month’s filings were up 19.2 percent from the 120 cases in September 2017.

Bankruptcy filings continue on pace to finish ahead of 2017’s total and end the state’s streak of seven straight years of declines. Through nine months there have been 1,128 filings, 10.7 percent higher than 1,019 during the same period a year ago.

“I can see people are spending more now,” said Honolulu bankruptcy attorney Greg Dunn, who acknowledged that he is much busier this year than in 2017. “They’re charging more and getting into more debt. The economy is better and maybe people feel they can spend more money and go on credit more. People are maybe overextending themselves.”

In September there were 107 Chapter 7 liquidation filings, up 32.1 percent from 81 filings a year ago. Chapter 7 is the most common type of bankruptcy.

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, fell 5.3 percent to 36 from 38.

There were no Chapter 11 cases last month compared with one in the year-earlier period. Chapter 11 filings typically involve business reorganization.

Bankruptcy filings rose in all four of Hawaii’s main counties.

Honolulu County filings increased to 109 from 97, Hawaii County filings edged up to 14 from 11, Maui County filings increased to 16 from 11 and Kauai County filings rose to four from one.

SEEKING RELIEF

Bankruptcy filings in September rose from a year ago.

2018 / 2017 / PCT. CHANGE

Chapter 7 107 81 32.1%

Liquidation

Chapter 11 0 1 —

Business reorganization

Chapter 13 36 38 -5.3%

Individuals with regular sources of income set up plans to pay creditors over time

Total 143 120 19.2%

Source: U.S. Bankruptcy Court, District of Hawaii

ON THE MOVE

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