PROVIDENCE – There were 99 bankruptcies filed in Rhode Island in June, a decline from 153 in the same month a year ago, according to the most recent data from the U.S. Bankruptcy Court.
There were 98 bankruptcy filings in the state in May.
Chapter 7 bankruptcies accounted for 90 filings in the month while the remaining nine were Chapter 13 filings. There were four business bankruptcies in June and 95 consumer 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.
By the end of June, bankruptcies in the state totaled 752 in 2020, compared with 1,088 at that time a year earlier.
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