Hawaii bankruptcies spiked 16.7% in March to the highest level for that month in four years amid continued signs of a weakening economy.
Increased filings are coming at a time when visitor spending has decreased for five straight months, auto sales are projected to decline for the second straight year and the unemployment rate is at its highest level in two years.
“The number is consistent with the economy slowing down,” said Eugene Tian, chief economist for the state Department of Business, Economic Development and Tourism. “DBEDT projected that Hawaii’s economic growth is at 1.2% for 2019 while the average economic growth for the last 30 years was 1.8%.”
STILL, HE said the uptick in filings doesn’t signal an economic recession.
“Though bankruptcies increased in 2018 and the first three months of 2019, the 403 (first-quarter) filings are still very small as compared with the filings during the recession years,” he said.
SEEKING RELIEFBankruptcy filings in March rose from a year ago.
2019 | 2018 | % change
Chapter 7: 110 | 91 | 20.9%
Liquidation
Chapter 11: 1 | 0 | —
Business reorganization
Chapter 13: 36 | 35 | 2.9%
Individuals with regular sources of income set up plans to pay creditors over time
Total: 147 | 126 | 16.7%
Source: U.S. Bankruptcy Court, District of Hawaii
During the last three recessions in Hawaii, the average number of Chapter 7 and 13 filings per quarter was 777 in 2009, 1,254 in 2001 and 1,450 in 1998.
Last month the number of bankruptcies in Hawaii jumped to 147 from 126 in the year-earlier period, according to data released Monday by the U.S. Bankruptcy Court, District of Hawaii. The total represented the most for that month since 157 were filed in March 2015. The total through three months is 19.2% higher from 338 during the same period a year ago. If that pace holds, statewide filings will rise for the second year in a row after seven straight years of declines.
IN MARCH there were 110 Chapter 7 liquidation filings, up 20.9% from 91 in the year-earlier period. 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, inched up to 36 from 35 in the previous March.
There was one Chapter 11 case last month from Dillingham Restaurant Corp., which operates Bob’s Big Bear Restaurant.
There were no Chapter 11 filings in March 2018. Chapter 11 filings typically involve business reorganization.
Bankruptcy filings rose in all four major counties from the year-earlier period. Honolulu County filings increased to 105 from 99, Hawaii County filings rose to 16 from seven, Maui County filings increased to 17 from 15 and Kauai County filings rose to nine from five.
