PROVIDENCE – There were 128 bankruptcy filings in Rhode Island in February, according to the U.S. Bankruptcy Court, District of Rhode Island.
Filings declined 28.1% year over year, and there were 10 fewer filings month to month.
The filings included one business bankruptcy filing for the month. A majority of the filings in February, 93, were Chapter 7 filings, while 34 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 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.
Providence County accounted for the most filings of any county in the state at 171 filings, followed by Kent County at 53 filings.
Bankruptcy filing in Rhode Island in January and February totaled 266, a decline from 342 one year prior.
Chris Bergenheim is the PBN web editor. You may reach him at Bergenheim@PBN.com.
