HONOLULU (HawaiiNewsNow) - U.S. Bankruptcy Court for the District of Honolulu counted 305 new bankruptcy filings in December, down from the same month in 2009 and the first year-to-year decline since 2006.
More than two thirds of the filings were outright liquidations under Chapter 7 of federal bankruptcy law, the court reported Monday.
The year-to-year decline is not necessarily the beginning of a trend. December 2009 was the busiest month of that year for bankruptcy filings, making the year-to-year decline easier to achieve.
For full year 2010, there were almost 4,000 filings, up 27.5 percent from 2009, though that was a smaller rise than the 40 percent to 50 percent year-to-year increases of the previous three months.
There have been some high-profile cases of local companies emerging from bankruptcy, including Hawaiian Telcom and Hilo Hattie, but a variety of small businesses have shut down in the past year, even when sales were improving, because of the burden of debt incurred earlier when the economy was slower.
Copyright 2011 Hawaii News Now. All rights reserved.