PROVIDENCE – Bankruptcy filings in Rhode Island totaled 80 in February, a decline from 137 one year prior, according to data released by the U.S. Bankruptcy Court Monday.
Bankruptcy filings in the state totaled 82 in January.
Of all filings in February, 74 were consumer filings and five were business filings.
A majority of the filings for the month were Chapter 7 filings, while nine were Chapter 13.
Chapter 7 discharges qualifying debt. When it involves a business, the company likely 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 plan that allows unsecured creditors to recover part or all of what they are owed.
Year to date, bankruptcies in Rhode Island totaled 163, a decline from 275 at that time one year prior.
