PROVIDENCE – There were 138 bankruptcy filings in Rhode Island in January, the lowest level for the month since 2006, when there were 86 filings, according to the U.S. Bankruptcy Court this week.
There were 169 filings in January 2019 and 144 in December 2019. January was the lowest reported bankruptcy filings in Rhode Island since November 2019, when there were 134 filings.
A majority of filings (110) in January were Chapter 7 filings, while the remainder were Chapter 13 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.
Only two of the 138 filings were business filings, while the rest were consumer filings.
Filings by county for January:
- Providence County: 82
- Kent County: 33
- Washington County: 9
- Bristol: 7
- Newport: 7
There were 2,039 bankruptcy filings in Rhode Island in 2019, a 5.6% decline year over year.
Chris Bergenheim is the PBN web editor. You may reach him at Bergenheim@PBN.com.
