Bankruptcy filings in July rose more than 45 percent from the same month a year earlier, reflecting continued weakness in Hawai'i's economy.

A total of 157 individuals and businesses filed for bankruptcy protection last month, which compares with 108 in July 2007, according to the U.S. Bankruptcy Court in Honolulu.

"It's the fallout from the easy-money days," said local bankruptcy attorney Chuck Choi.

Nearly all of the filings were filed by individual consumers, hard hit by the weakening economy and rising mortgage payments.

Many homeowners who took out adjustable-rate mortgages in the boom years found themselves in trouble after their monthly interest payments adjusted upward recently, Choi said.

The soft real-estate market also made it difficult for them to refinance their loans or sell their homes without taking a big loss, he said.

"Much of this is real-estate driven," Choi said. "People just can't continue to carry their mortgages when the rates adjust upwards, and they can't dump their property on the market."

To be sure, Hawai'i continues to have some of the lowest per-capita filing rates in the nation. But the increase in the local filings reflects a national trend that's heading toward record levels.

Local bankruptcy attorney David Farmer believes the worst is still ahead. Hawai'i's economy still has a way to go before hitting bottom, so bankruptcy filings will continue to rise, he said.

Farmer, who also works as a court-appointed bankruptcy trustee, said his trustee case load has soared in recent months because of a big increase in consumer-related cases.

Year-to-date, the number of local bankruptcy filings is up 32 percent to 1,046 from last year's 792.