PROVIDENCE – There were 142 bankruptcy filings in Rhode Island in September, a 7.8% decline year over year, according to data from the U.S. Bankruptcy Court.
Of the 142 filings in September, 110 where Chapter 7, while 32 filings were Chapter 13. 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 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 7 is the most common form of bankruptcy in the country.
Five of the filings for the month were business filings, while the remaining 137 were consumer filings.
A majority of the filings for September were filed in Providence County at a total of 94 filings. The second-most filings occurred in Kent County at 34.
Year to date at the end of September, the number of bankruptcy filings in the state totaled 1,606, a 6.6% decline from total filings year to date in September 2018.
Chris Bergenheim is the PBN web editor. You may reach him at Bergenheim@PBN.com.
