Since a more stringent federal bankruptcy law took effect on Oct. 17, only six people have filed for bankruptcy in Hawai'i.

That compares with about 1,400 filings from Oct. 1 to Oct. 16, which was equal to nearly half of all cases filed last year.

"It's dropped off tremendously," said Mark Van Allsberg, a U.S. Bankruptcy Court official in Honolulu.

Van Allsberg and other observers including attorneys said most of the expected falloff in filings was probably from people rushing to beat the new law. The new law also makes it more difficult and costly to file for bankruptcy, so fewer cases are expected in the months to come.

"I bet we're not going to see figures return to the levels before Oct. 17 for at least a year and maybe more," Van Allsberg said.

The new law, which President Bush signed in April, makes it more difficult for individuals to eliminate most debts by filing for Chapter 7 bankruptcy. Individuals whose income exceeds their state's median and fail a "means" test are now generally required to file under Chapter 13, which calls for debtors to repay creditors under terms established by the courts.

Between Oct. 17 and yesterday afternoon, there were only six Hawai'i bankruptcy filings, including two Chapter 13 cases.

Hawai'i's median income ranges from $45,513 for a single person to $75,785 for a family of four.

Local bankruptcy attorney Blake Goodman said the new law may have left an impression that people can't file for bankruptcy if they earn above the median income, which is not true.

Reach Andrew Gomes at agomes@honoluluadvertiser.com.