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Hawaii bankruptcy filings continued their downward trend as they declined 24.3 percent in June from the year-earlier period amid an improving state economy.
It was the fourth time in six months that the number of filings has fallen at least 20 percent and marked the 12th consecutive monthly decline on a year-over-year basis, according to a recent report from U.S. Bankruptcy Court.
There were 140 cases filed in June compared with 185 in the year-earlier period.
Through the first half of the year, there have been 886 cases filed, a drop of 21.2 percent from 1,125 during the same period in 2013. At their peak in 2010, bankruptcy cases averaged 330 a month as the local economy recovered from the 2008-2009 recession. So far this year the average has been about 148 a month.
In June the most common type of bankruptcy — Chapter 7 liquidation — dropped 27.5 percent to 100 from 138. Chapter 13 filings, which allow individuals with regular sources of income to set up plans to pay creditors over time, declined 19 percent to 38 from 47.
There were two Chapter 11 filings, which allow a business to reorganize, compared with none in June 2013.
Across the state, June bankruptcies in Honolulu County fell 28.3 percent to 76 from 106. Hawaii island filings declined 12.5 percent to 21 from 24. Maui County cases fell 29.2 percent to 34 from 48, and Kauai cases were up 28.6 percent to 9 from 7.
SEEKING RELIEF |
Bankruptcy filings in June fell from a year ago: |
|
2014 |
2013 |
CHANGE |
Chapter 7 |
100 |
138 |
-27.5% |
Chapter 11 |
2 |
0 |
—— |
Chapter 13 |
38 |
47 |
-19.1% |
Total |
140 |
185 |
-24.3% |
>> 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 |