PROVIDENCE – Bankruptcy filings in Rhode Island increased 64.9 percent in the 12 months ended June 30, according to the Administrative Office of the U.S. Courts.
The number of bankruptcy cases filed by Rhode Islanders over the previous 12 months rose to 3,599 from 2,183 in June 2007. Business filings made up 122 of the 3,599 cases.
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Nationwide, the number of bankruptcy filings increased by 28.9 percent between June 2007 and June 2008, to 967,837.
Rhode Island ranked 15th in bankruptcy filings per capita from June 2007 to June 2008. Massachusetts, where bankruptcy filings rose by 28.3 percent, ranked 35th nationwide, while Connecticut, with a 35.9-percent increase, ranked 41st.
The Ocean State saw a particularly high number of Chapter 7 bankruptcy filings – in which a person’s or business’s assets are liquidated to pay off creditors – over the past year. The state ranked 8th in the country in the number of Chapter 7 filings, with 2.74 filings per 1,000 residents.
Rhode Island had a smaller number of Chapter 13 filings – in which a bankruptcy judge approves a long-term debt repayment plan. There were 0.66 Chapter 13 filings per 1,000 residents, ranking Rhode Island in the bottom half of states.
The Administrative Office of the U.S. Courts is the agency that supports the day-to-day operations of the federal court system. For more information – including the full national report, “Bankruptcy Filings Near Million Mark for 12-Month Period Ending June 30, 2008” – visit the agency’s Web site at UScourts.gov.
The U.S. Bankruptcy Court for the District of Rhode Island is located on Westminster Street in Providence. For more information, visit rib.UScourts.gov.
