FOR IMMEDIATE RELEASE

Editorial Contact:

Aglaia Pikounis                                                

The Warren Group

(617) 896-5370

apikounis@thewarrengroup.com

Bankruptcy Filings in Connecticut Swell in 2008;

Chapter 7 Filings More than Double in Two Years

BOSTON, Feb. 16, 2009 – Mirroring a trend seen in other parts of the country, personal bankruptcy filings in Connecticut shot up more than 60 percent in 2008 from a year earlier, according to the latest report from The Warren Group.

The number of filings under Chapter 7 of the U.S. bankruptcy code totaled 5,676 last year, a 66 percent increase from 3,417 in 2007 and more than double the 2,604 filings in 2006. Nearly all of the Chapter 7 filings in Connecticut last year were by individuals.

Chapter 7 bankruptcy allows filers to eliminate most debt after non-exempt assets are used to pay off creditors. It is the most common option for individuals who are seeking relief from their debts and accounted for 77.5 percent of bankruptcy filings in Connecticut last year.

“It’s clear that many Connecticut residents are hurting in this challenging economy. Job layoffs and mounting debt have pushed more and more people to file for bankruptcy protection,” said Timothy M. Warren Jr., CEO of The Warren Group, publisher of The Commercial Record. “In the past, many desperate homeowners used to rely on home equity loans to pay off bills. But as home values have plummeted and owners are left without home equity, a growing number are resorting to bankruptcy.”

Despite the increase from 2007, the number of Chapter 7 filings is still well below the level in 2005, when there were 13,204 filings. Filings spiked in 2005 shortly before a federal law went into effect that made it tougher and more expensive for people to file for bankruptcy protection under Chapter 7, according to The Warren Group. The law requires people to file under Chapter 13 if their income exceeds the median in their state. While Chapter 7 essentially wipes away debt, Chapter 13 requires debtors to arrange for a three- or five-year debt-repayment plan.

A total of 1,563 filers sought protection under Chapter 13 in 2008, up 12.5 percent from 1,389 filings in 2007, and 32.7 percent higher than the 1,178 filings in 2006.

Nationally, bankruptcies totaled nearly 1.1 million in 2008, an increase of more than 30 percent over 2007 filings, according to the American Bankruptcy Institute. More than 97 percent of the filings were by consumers.

About The Warren Group

The Warren Group, based in Boston, is the publisher of Banker & Tradesman, The Commercial Record and a series of association publications. As the premier provider of real estate data in New England, The Warren Group offers a range of real estate products and services for professionals and consumers searching for real estate and financial information. For more information about The Warren Group, please visit www.thewarrengroup.com or call 617-428-5100.