Hawaii bankruptcies reach highest level in 5 years

A house in foreclosure on Kaiminani Drive is pictured in this file photo. (Laura Ruminski/West Hawaii Today)
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HONOLULU — Hawaii bankruptcies spiked in July and are on track to reach their highest level in five years.

The 142 filings last month were 37.9% higher than 103 in the year-ago period, according to recent data from the U.S. Bankruptcy Court District of Hawaii.

Bankruptcies have risen in five of the seven months this year as economic growth in the state slows, and are up 14.8% compared with the same time in 2018. There have been 969 cases filed through July compared with 844 during the same period a year ago. At the current pace of about 138 bankruptcies a month, the number of filings for the year would hit 1,656, exceeding the 1,569 filed in 2015 and marking the highest number since 1,702 were filed in 2014.

Bankruptcy filings had fallen seven years in a row before breaking that streak in 2018.

Filings for Chapter 7 liquidation rocketed 52.8% in July to 110 from 72 in the year-earlier period. It was the highest number of Chapter 7 filings in a month since 123 in 2013.

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, matched the 31 filed in the year-earlier period.

The Minesen Co., which does business as the Inn at Schofield Barracks, was the only Chapter 11 filing last month. There were none in the year-earlier period.