Isle bankruptcies The number of bankruptcies filed this year in Hawaii exceeded 5,000, the result of increased consumer credit card debt and a controversial law to reform the bankruptcy system.
top 5,000
The total is above last year's 4,527,
but lower than the record of
5,813 filings set in 1998Star-Bulletin staff
Individuals and businesses filed 5,025 bankruptcies in 2001, an 11 percent increase from 4,527 the year before, according to the Office of the U.S. Trustee, which oversees the federal bankruptcy court. The record is 5,813, filed in 1998.
Nationwide year-end figures are not yet available. For the first nine months of the year, a total of 1.13 million bankruptcies were filed in the United States, up 20 percent from 942,782 last year, according to the Administrative Office of the U.S. Courts.
A bill to overhaul bankruptcy laws by making it harder for consumers to file Chapter 7 appears stalled in Congress.
Supporters said too many people were using Chapter 7, known as straight bankruptcy, to wipe away their debts irresponsibly. Others said the changes were too harsh. Bankruptcy rolls jumped when consumers tried to beat the changes in the law, but the events of Sept. 11 put the legislation on hold. In Hawaii, Chapter 7 petitions rose 12 percent to 4,497 from 4,017 last year.
About one out of every 240 Hawaii residents filed for bankruptcy this year, either under Chapter 7 or Chapter 13.
Chapter 11 filings, typically used by businesses to reorganize their finances without the threat of lawsuits from creditors, fell 27 percent to 22 from 30 in 2000.
Notable local companies and people who filed bankruptcy this year included biotech firm Aquasearch, tour operator Trans Hawaiian Services, Crazy Shirts and former Honolulu Councilman Andy Mirikitani, who is scheduled to begin his federal prison term in January.