Bankruptcy filings in Hawaii fell in March for the 13th consecutive month, according to data released Monday by U.S. Bankruptcy Court.
The 267 cases filed statewide in March were 25.4 percent fewer than the 358 cases filed the same month a year earlier, the court reported. Bankruptcy filings have been trending lower since averaging a post-recession high of 330 a month in 2010.
The last time filings increased on a year-over-year-basis was in March 2011 when they rose a scant 0.3 percent.
Filings averaged 234 a month during the first three months of this year, down from an average of 277 per month in 2011.
The March filings included 206 Chapter 7 liquidation cases and 58 Chapter 13 cases in which the debtor enters a court-ordered debt repayment plan. In addition, there were two Chapter 11 business reorganization plans and one filing under Chapter 12, which is reserved for family farms and fishing operations.
SEEKING RELIEF
Bankruptcy filings in March fell from a year ago:
| |
2012 |
2011 |
PCT. CHANGE |
| Chapter 7 |
206 |
271 |
-24.0% |
| Chapter 11 |
2 |
2 |
0.0% |
| Chapter 12 |
1 |
0 |
—- |
| Chapter 13 |
58 |
85 |
-31.8% |
| Total |
267 |
358 |
-25.4% |
>> Chapter 7: Liquidation
>> Chapter 11: Business reorganization
>> Chapter 12: Reorganization of family farms
>> Chapter 13: Individuals with regular sources of income set up plans to pay creditors over time.
Source: U.S. Bankruptcy Court, District of Hawaii
|
Bankruptcies fell in all counties. In Honolulu the number of cases fell to 163 in March, a 25.6 percent decline from the same month a year earlier. Filings fell to 49 in Maui County, a 22.2 percent decline from March 2011. In Hawaii County they fell by 8.5 percent to 43 cases, and in Kauai County, by 58.6 percent to 12 cases.
Despite the recent decline in cases, the number of filings is still running ahead of the pre-recession average of 115 cases a month in 2007.
"The number of cases has gone down, but it’s still pretty steady," said local bankruptcy attorney Greg Dunn. He handled about 40 new cases in March, according to Bankruptcy Court records.
Dunn said he is still seeing quite a few debtors who are filing under Chapter 13 to keep lenders from foreclosing on their homes.
Although there are some signs that the local job market is improving, most people who seek his services are doing so because they are without a job or have been forced to take a pay cut, he said.
"They’re making less money, and they can’t keep up with their bills. The slower economy means companies are hiring fewer people and getting those they have to do more for less," he said.
