The number of bankruptcies filed in Hawai'i is expected to rise about 60 percent this year, though one economist said the state's economy isn't to blame.

Through yesterday business and personal bankruptcy filings soared 57 percent to 4,480 filings, according to figures from the U.S. Bankruptcy Court in Honolulu.

That's the largest number of filings annually since 2001, when terrorist attacks and a national recession took a toll on the fortunes of some Hawai'i residents.

Bankruptcy rates have fallen since 2001 amid an economic expansion driven by strength in real estate, construction and tourism. That has led to strong income and job growth, which helps drive down bankruptcy filings.

Bankruptcy filings typically provide insight into how well the economy is doing.

However, this year's surge in filings was primarily a result of a change in bankruptcy law, which made it tougher and more expensive for people to erase debt, said Leroy Laney, a Hawai'i Pacific University economics professor.

"Because of the change in the law, I would say that the entire year doesn't mean much," he said. "They probably would have filed for bankruptcy over a longer time. People rushed to meet that deadline."

Indeed, in October when the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 took effect, the number of bankruptcy filings soared to 1,463. In November there were just 14 bankruptcy filings.

Going forward bankruptcy filings should decline as Hawai'i's economy is forecast to continue to grow in 2006, Laney said.

Nationally bankruptcy cases filed in federal courts rose 10 percent in fiscal year 2005, which ended Sept. 30, according to the Administrative Office of the U.S. Courts.

During the 12-month period a record 1,782,643 bankruptcies were filed, up from the 1,618,987 bankruptcy cases filed in fiscal year 2004. Filings for the three-month period from June 30, 2005, to September 30, 2005, also were the highest number filed for any quarter in the history of bankruptcy.

Reach Sean Hao at shao@honoluluadvertiser.com.