More than 350 bankruptcy cases were filed in March—the highest monthly total in nearly 41/ 2 years—as individuals and businesses in the state continued to struggle with the recession.

The 352 cases, up 30.4 percent from the year-earlier period, marked the second consecutive monthly increase and represented the largest monthly number since the law changed in October 2005, according to preliminary figures yesterday from the U.S. Bankruptcy Court for the District of Hawaii. The 2005 law made it more difficult and costlier to seek financial relief.

The number of business bankruptcies jumped to four from one in March last year. Two of those were filed by the companies that operated the Aloha, Hula and Oahu football bowl games. The NCAA bowl season included the Aloha Bowl from 1982 to 2000, when it ceased due to dwindling attendance.

The dramatic jump does not surprise Honolulu bankruptcy attorney Donald Spafford, who had yet another case to file yesterday afternoon.

“;I'm seeing more people coming to me because of the furloughs,”; he said. “;They were struggling before, then losing a substantial percentage of their income makes it impossible to make ends meet.”;

Many of his clients are facing foreclosure, “;and so I've filed quite a few Chapter 13 (cases), trying to help people save their homes,”; as they can no longer afford to pay their mortgages.

Quite a few of those clients have tried to obtain loan modifications without success.

Part of the problem, Spafford believes, is that the mortgage loans have been sold to investment trusts.

In the past, when banks held mortgages, “;you knew you were dealing with the actual owner of the loan, so things were easier. Now I'm not sure the services (that accept loan modification applications) know who has the authority to approve loan modifications.”;

Also what is unfortunate, Spafford said, is that the Bankruptcy Court does not have the power to modify mortgage loans, so the homeowners are “;still stuck with the old interest rate and monthly payment and have to sit down with the lender to modify the loan.”; Some of his clients have received more favorable treatment from their lenders after declaring bankruptcy, he said. He thinks cases will continue to increase in April.