PROVIDENCE – Rhode Island bankruptcy filings totaled 70 in July, a decline from 101 the previous month and 128 a year ago, according to U.S. Bankruptcy Court District of Rhode Island data.
All of the bankruptcy filings last month were from consumers and not businesses.
Fifty-seven of the filings were Chapter 7 filings, and 13 were Chapter 13 filings.
Chapter 7 discharges qualifying debt, although when it involves a company it is likely that the entity will be liquidated as part of the process. Chapter 7 is the most common form of bankruptcy in the country. Chapter 13 involves repayment of debts, often by establishing a repayment plan that allows unsecured creditors to recover part or all of what they are owed.
For 2021, bankruptcy filings in Rhode Island totaled 638 at the end of July, a decline from 875 filings in the same period a year earlier.
