Hawai'i monthly bankruptcy filings have remained steady for the second month in a row, with July's total the state's second-highest this year, as individuals and businesses succumbed to the state's continuing economic downturn.

Figures from the U.S. Bankruptcy Court in Honolulu show there were 270 bankruptcy filings last month, one person less than in June.

The July figure represents a 72 percent rise from July 2008, which also experienced a double-digit percentage jump in bankruptcies compared to a year earlier.

There were 157 cases filed in July 2008.

The increase marked the 14th consecutive month that bankruptcies have surged by a significant percentage — by at least 45 percent compared to the same month a year earlier.

Edward D. Magauran, a consumer bankruptcy attorney, said the rising numbers follow major changes in consumer bankruptcy law in 2005.

"We're seeing a lot of people that shouldn't have bought houses in the last five years. They bought the sales pitch of 'don't worry, prices will go up and you can sell in a year.' "

Magauran said many consumers are worried about unexpected financial losses, such as being furloughed from state jobs, and are dealing with secured and unsecured debt that they just can't afford.

"I see people with incomes of $2,000 or $3,000, with a kid, and they have these interest rates of 20 to 30 percent. They can't afford to pay it off. It's just impossible."

Attorney Michael A. Lily, of Ning, Lily and Jones, said it's hard to ignore a 72 percent increase in bankruptcy filings from 2008 to 2009.

"It's harder to file bankruptcy (since 2005), so now, if the number of cases is up against more difficult procedures, that's significant."

Lily specializes in collections and said that he has noticed an increase in the amount of people who have declared bankruptcy or are going through the process.

"Foreclosure, less jobs, higher rates, rising costs, government increases, all have an impact on the community," Lily said.

"People go bankrupt, and are wiping out debt, but the companies and firms can't collect anymore, so they lose that money. It affects those debtors, and those debtors reflect the economy."

Hawai'i has had more than 200 bankruptcy filings each month for the last nine months. Yet the Islands continue to have one of the lowest per-capita bankruptcy rates nationally, although the state's rate of increase in recent months ranks among the top in the nation.

Figures from AACER, Automated Access to Electronic Court Records, show Hawai'i in May had 2.24 bankruptcies per 1,000 residents.