PROVIDENCE – Rhode Island bankruptcy filings totaled 59 in September, a decline from 77 the previous month and 102 in September 2020, according to U.S. Bankruptcy Court District of Rhode Island data.
Fifty-six of the bankruptcy filings last month were from consumers, while three were from businesses.
Forty-four of the filings were for Chapter 7 protection, and 15 were for Chapter 13 protection.
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.
For 2021, bankruptcy filings in Rhode Island totaled 774 at the end of September, a decline from 1,086 filings in the same period a year earlier.
