PROVIDENCE – There were 153 bankruptcy filings in Rhode Island in October, a decline from 160 filings one year prior, according to the U.S. Bankruptcy Court.
Of all of the bankruptcies filed in October, 144 were consumer filings and nine were business filings.
There were 117 Chapter 7 filings, 35 Chapter 13 filings and one Chapter 11 filing for the month.
Providence County accounted for the majority of filings at 87 for the month, followed by Kent County at 38 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 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. Chaper 11 usually involves a corporation or partnership and typically includes a plan of reorganization to keep a business alive and pay creditors over time.
Year-to-date filings in October totaled 1,760, a 6% decline year over year.
