R.I. bankruptcies fall in April to 94

BANKRUPTCIES in Rhode Island totaled 94 in April. / PBN GRAPHIC/CHRIS BERGENHEIM
BANKRUPTCIES in Rhode Island totaled 94 in April. / PBN GRAPHIC/CHRIS BERGENHEIM

PROVIDENCE There were 94 filings for bankruptcy in the state in April, a decline from 205 one year prior, according to data from the District of Rhode Island U.S. Bankruptcy Court.

All filings for the month were consumer filings. A majority of filings, 84, were Chapter 7 filings, while 10 were Chapter 13 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.

The U.S. Bankruptcy Court began holding telephonic hearings on March 17 due to the COVID-19 pandemic.

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Providence County had the most filings in April at 51, followed by Kent County at 29.

Year to date, bankruptcy filings in the state totaled 555 through April.

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