R.I. bankruptcies ease in May to 98

BANKRUPTCIES in Rhode Island totaled 98 in May. / PBN GRAPHIC/CHRIS BERGENHEIM
BANKRUPTCIES in Rhode Island totaled 98 in May. / PBN GRAPHIC/CHRIS BERGENHEIM

PROVIDENCE – There were 98 bankruptcies in Rhode Island in May, a decline from 184 one year prior, according to U.S. Bankruptcy Court data.

There were 94 bankruptcies in the state in April.

Of the 98 filings in May, 85 were Chapter 7 filings and 13 were Chapter 13 filings. A majority, 94, of bankruptcies were filed by consumers. The other four were business filings.

Chapter 7 discharges qualifying debt, although when it involves a company it is likely that it 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. 

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Providence County had the most filings among all counties at 60, followed by Kent County at 20.

Through March, bankruptcies in Rhode Island have totaled 653, compared with 935 during the same period last year.

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