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The Honolulu Advertiser
Posted on: Friday, October 2, 2009

Bankruptcy filings rose in September


Advertiser Staff

Hawaii news photo - The Honolulu Advertiser
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Hawai'i bankruptcy filings continued to increase in September, though the gains aren't rising as fast as earlier this year.

Statistics from the federal bankruptcy court in Honolulu show there were 283 filings in September, the most since Hawai'i's economic downturn started last year.

Bankruptcy filings have been increasing at a pace of more than 30 percent each month since April 2008 as Hawai'i's economy went through a series of company shutdowns and layoffs, while credit tightened nationally. The gains marked a steep upturn from the 115 bankruptcies a month the state averaged in 2007.

While Hawai'i's overall rate of filing on a per capita basis remains low, there has been a rise in cases brought on by people unable to deal with debt after losing jobs or having their pay cut. Others haven't been able to meet mortgage payments.

The latest figures show the rate of gain is starting to decline, with September's 35 percent increase in cases comparing with a more than doubling in September 2008. It was the second straight month the percentage increase in filings had fallen compared with the month before.

The data also show:

• The number of Chapter 7 bankruptcy cases rose 48 percent to 219 in September, while Chapter 13 cases were up about 11 percent to 63. There was one Chapter 12 filing.

• O'ahu filings rose to 159 from 137 a year prior.

• Maui County cases jumped to 71 from 43.

• There were 38 Big Island filings. A year earlier there were 22.

• Kaua'i filings more than doubled to 15 from 7 in September 2008.