R.I. bankruptcies total 101 in June

THERE WERE 101 BANKRUPTCY filings in Rhode Island in June. / PBN GRAPHIC/CHRIS BERGENHEIM
THERE WERE 101 BANKRUPTCY filings in Rhode Island in June. / PBN GRAPHIC/CHRIS BERGENHEIM

PROVIDENCE – Bankruptcy filings in Rhode Island totaled 101 in June, an increase from 82 filing in May and 99 filings in June 2020, according to U.S. Bankruptcy Court District of Rhode Island data posted Thursday.

Of the bankruptcy filings last month, 95 were from consumers and six were from businesses.

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Ninety-one of the filings were Chapter 7 filings, nine were Chapter 13 filings, and one was a Chapter 11 filing.

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. Chapter 11 filings allow for a reorganization of the filer, which continues operations, emerging from court protection only when a plan that satisfies creditors is in place.

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For 2021, bankruptcy filings in Rhode Island totaled 566 at the end of June, a decline from 752 filings in the same period a year earlier. 

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