There were 185 bankruptcy cases filed in Hawaii in June, unchanged from the same month a year ago, U.S. Bankruptcy Court reported Monday.
It marked the first time in 27 months that the number of bankruptcies didn’t decline on a year-over-year basis, according to the report. However, bankruptcy filings are still on a downward trend through the first six months of the year with cases running 17 percent below the same period in 2012.
Bankruptcy filings soared during the 2008-2009 recession, topping out at an average of 330 cases a month in 2010. Filings have been trending lower since then.
The decline in bankruptcy filings in Hawaii mirrors a national trend in which the improving economy is allowing businesses and households to dig out from debt racked up during the economic downturn.
Bankruptcy filings fell in all counties except for Maui, which saw cases increase to 48 in June from June 2012. Filings fell to 106 from 117 on Oahu, to 14 from 28 in Hawaii County and to seven from 10 in Kauai County.
The bulk of the filings in June — 138 cases — were filed under Chapter 7 of the federal bankruptcy code, which calls for liquidation of a debtor’s assets. Chapter 13 cases, which allow debtors to keep their assets if they set up a plan to pay creditors over time, rose by 18 percent to 47 cases in June.
The drop in bankruptcy filings in Hawaii has been accompanied by declining credit card debt. The most recent data by credit-scoring website Credit Karma showed that average credit card debt in Hawaii dropped 10 percent in April to $6,716, compared with the same month in 2012. The average outstanding balance on auto loans, meanwhile, rose to $17,139 in April from $15,408 a year earlier.
Despite a slight drop in the average credit score for Hawaii residents to 670 in April from 678 the same month a year ago, the state retained the highest average score of all states.
SEEKING RELIEF Bankruptcy filings in June were flat from a year ago:
|
2013 |
2012 |
PCT. CHANGE |
Chapter 7 |
138 |
143 |
-3.5% |
Chapter 11 |
0 |
2 |
—- |
Chapter 13 |
47 |
40 |
+17.5% |
Total |
185 |
185 |
0.0% |
>> Chapter 7: Liquidation >> Chapter 11: Business reorganization >> Chapter 13: Individuals with regular sources of income set up plans to pay creditors over time.
Source: U.S. Bankruptcy Court, District of Hawaii
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