PROVIDENCE – There were 153 bankruptcies in Rhodes Island in June, a 26.8% decline year over year, according to the U.S. Bankruptcy Court District of Rhode Island.
Year to date, bankruptcies totaled 1,089 through June, compared with 1,217 bankruptcies in the state from January through June 2018. Figures included reopenings (meaning that a previously resolved bankruptcy filing was pulled back into bankruptcy for a number of reasons).
In June, 104 of all bankruptcy filings were Chapter 7 filings, while 49 filings were Chapter 13 and two were Chapter 11. Seven filings in June were for businesses, while 146 were for consumers.
In Chapter 7 bankruptcy, a bankruptcy trustee gathers and sells the debtor’s nonexempt assets and uses the proceeds of such assets to pay holders of claims. Chapter 13 bankruptcy, commonly known as a wage earner’s plan, allows for the debtor to propose a repayment plan to make installments to creditors over three to five years. 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 had the highest number of filings in June in the state at 91, followed by Kent County at 33, Washington County at 16, Newport County at seven and Bristol County at six.
Month to month, filings declined 17.3% from 185 in May.
