According to a report issued by the U.S. Bankruptcy Court, a total of 137 cases were filed in August, which represented an 18.5 percent decrease as compared to the same month a year prior. This marks the 14th straight month of decline on a year-over-year basis. George Dunn, a Honolulu bankruptcy attorney, commented, "It appears the economy is improving right now and the federal government is doing a lot of things to help that in terms of keeping interest rates low. Jobs are a little bit better now than in the past and people are being more careful in creating less debt. I'm working less than 40 hours a week. It's kind of a good thing for me because I needed a break. It's kind of slowed down the last 15 or 20 months. Between the period from 2009 to 2011, I was working 80 to 90 hours a week, and I'm still recovering."
Dunn added, "The federal government might be creating a bubble. With the Federal Reserve keeping interest rates low for the foreseeable future, it looks like this (declining bankruptcy trend) could go on for one or two more years. I've been doing bankruptcies since 1988 and have been through these cycles over the years where the economy goes up and falls apart and then goes back up. So I'm expecting another crash. I don't know when it's going to be, maybe one or two years from now, but I'll be ready."
Source: Honolulu Star Advertiser, 9-3-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
Global Executive Realty, LLC
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