RISMEDIA, July 26, 2010—Bankruptcy filings in Connecticut rose 19.7% in the first half of the year compared to the same period in 2009, according to a new report from The Warren Group, publisher of The Commercial Record.
A total of 5,593 filers statewide sought protection under Chapter 7, Chapter 13 and Chapter 11 of the U.S. bankruptcy code in the first two quarters, up from 4,673 a year earlier. The number of filings also climbed 6.5% from the previous two quarters, when there were 5,250 filings.
“Bankruptcy filings are considered a lagging indicator, and these bankruptcy filings really reflect earlier economic conditions. Many people struggle to hold on for as long as they can before seeking bankruptcy protection, but even though the economy is recovering, consumers are still hurting and struggling to pay off the debt they’ve accrued over the years,” said The Warren Group CEO Timothy M. Warren Jr.
A Chapter 7 bankruptcy filing is the most common option for individuals who are seeking relief from their debts and accounted for 89% of all bankruptcy filings tracked by The Warren Group from January through June. Chapter 7 bankruptcy filings totaled 4,968 in the first six months of 2010, a 23.8% increase from 4,014 during the same months last year.
People filing under Chapter 7 bankruptcy can eliminate most debt after non-exempt assets are used to pay off creditors. In contrast, Chapter 13 requires debtors to arrange for a three- or five-year debt-repayment plan.
Filings under Chapter 13 of the U.S. bankruptcy code fell 7.2% to 551 in the first half of the year from 594 last year and were unchanged from the previous two quarters.
For more information, visit www.thewarrengroup.com.
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