PROVIDENCE – Rhode Island bankruptcy filings totaled 77 in August, a rise from 70 the previous month but down from 104 a year prior, according to U.S. Bankruptcy Court District of Rhode Island data.
Nearly all of the bankruptcy filings last month, 75, were from consumers, while two were from businesses.
Sixty of the filings were Chapter 7 filings, nine were Chapter 13 filings and one filing 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 that continues operations, emerging from court protection only when a plan that satisfies creditors is in place.
For 2021, bankruptcy filings in Rhode Island totaled 715 at the end of August, a decline from 984 filings in the same period a year earlier.
