With one more month still to go, the number of Hawaii bankruptcies in 2019 already has reached its highest total in four years.
The 124 filings in November — albeit two fewer than the year-earlier period — swelled the 11-month total to 1,535, according to data released Monday from the U.S. Bankruptcy Court, District of Hawaii. That is the most cases for a year since 2015, when there were 1,569 filings. This is also the second straight year that Hawaii bankruptcies have risen after falling for seven years in a row.
“We are pretty busy here,” Honolulu bankruptcy attorney Greg Dunn said. “I’m working steadily, and I can feel that there have been more bankruptcies in my office. Statewide it’s not too bad because 1,500 in the whole state is not too bad.”
Historically, the total number of bankruptcies this year is less than half of its recent post-recession peak of 3,954 in 2010.
Hawaii economists have been saying in recent reports that growth in the state is slowing.
“People have maybe been overextending themselves,” Dunn said. “Maybe it’s a reduction in pay. They may be spending more, too, because maybe they’re feeling more confident, and then something happens and they can’t pay.”
Dunn said student loans also are becoming an issue because of defaults.
“Definitely, my clients are living paycheck to paycheck,” he said. “In fact, there’s not enough in their paychecks.”
In last month’s filings, Chapter 7 liquidation — the most common type of bankruptcy — fell 12.4% to 78 from 89 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, jumped 25.7% to 44 from 35.
And there were two Chapter 11 filings to match the same total from November 2018. The filings last month were from two ramen bistro affiliates — AguPlus LLC and Agu-V Inc. Chapter 11 filings are primarily for business reorganizations.
Bankruptcies were mixed in the four major counties. Honolulu County filings edged up to 91 from 90, and Maui County filings rose to 20 from 13. Kauai County bankruptcies fell to four from six, and Hawaii County filings declined to nine from 17.
SEEKING RELIEF
Bankruptcy filings in November fell from a year ago.
2019 / 2018 / PCT. CHANGE
Chapter 7 78 89 -12.4%
Liquidation
Chapter 11 2 2 0%
Business reorganization
Chapter 13 44 35 25.7%
Individuals with regular sources of income set up plans to pay creditors over time
Total 124 126 -1.6%
Source: U.S. Bankruptcy Court, District of Hawaii
