PROVIDENCE – There were 1,414 bankruptcy filings in Rhode Island in 2020, a 30.6% decline from 2,038 one year prior, according to data from U.S. Bankruptcy Court District of Rhode Island.
Of all filings, 31 were business filings, a decline from 64 in 2019, and 1,382 were consumer filings, a decline from 1,971 one year prior.
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A majority of filings, 1,562, in 2020 were Chapter 7 filings. There were also 470 Chapter 13 filings and six Chapter 11 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. 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.
December filings totaled 87, a decline from 143 one year prior. Of all filings in the month, five were business filings and the remainder were consumer filings. A majority of filings, 71, were Chapter 7 filings and 17 were Chapter 13.
