Nation’s bankruptcies increase
Hawaii's economy received further confirmation yesterday that it's recovering faster than the rest of the country when a federal report showed that U.S. bankruptcies rose 5.2 percent in 2003 to near-record levels.
Hawaii filings fell 15.3 percent last year to 3,795 from 4,479, according to data released by the U.S. Bankruptcy Court in Honolulu in early January.
There were nearly 1.7 million U.S. bankruptcy filings in 2003, according to data released yesterday by the Administrative Office of the U.S. Courts. The total, which marks an all-time high for a calendar year, is up from 1.6 million in 2002.
Paul Brewbaker, chief economist for Bank of Hawaii, said Hawaii's numbers, which have declined the last two years and four of the last five, will continue to outperform national statistics for awhile until the mainland economy gets on track.
"Bankruptcy statistics are always legacy statistics," Brewbaker said. "They tell you where the economy has been and how much fallout there has been from how the economy was performing. In Hawaii's case, it's outperformed the nation for several years and bankruptcy and other measures of financial failure are in decline, where the U.S. numbers are still a reflection of where the national economy was during those several years."
Of the total number of U.S. bankruptcy filings, Chapter 7 cases, which involve the liquidation of business or personal assets, were up 6 percent to 1.2 million from 1.1 million.
Chapter 13 filings, which allow an individual to work out a repayment plan to creditors, increased 3.8 percent to 473,137 from 455,877.
Chapter 11 filings, which are for business reorganization, fell 16.6 percent to 9,404 from 11,270.
Chapter 12 filings, which are designed to meet the needs of financially distressed family farmers, rose 46.8 percent to 712 from 485.
In Hawaii, Chapter 7 filings fell 17.5 percent to 3,294 from 3,995 a year ago. Chapter 13 filings edged up 0.2 percent to 462 from 461. Chapter 11 filings nearly doubled to 39 from 20. There were no Chapter 12 filings.
