FOR IMMEDIATE RELEASE
Editorial Contact:
Aglaia Pikounis
The Warren Group
(617) 896-5370
apikounis@thewarrengroup.com
Conn. Chapter 7 Bankruptcy Filings Spike in Second Quarter
Chapter 13 Filings Drop from 2008 Levels
BOSTON, July 21, 2009 – Chapter 7 bankruptcy filings in Connecticut shot up 49 percent in the second quarter of 2009 from the same period a year ago, according to The Warren Group, publisher of The Commercial Record.
There were 2,329 filings under Chapter 7 of the U.S. bankruptcy code from April through June, up from 1,563 during the same months in 2008. The number of filings was also 38.2 percent higher than the first quarter, when 1,685 filers sought Chapter 7 bankruptcy protection. The number of filers seeking protection under Chapter 7 bankruptcy in the second quarter was higher than each of the previous five quarters. A total of 4,014 Chapter 7 bankruptcy filings were recorded in the first half of 2009, a 43.8 percent increase from 2,792 last year.
“The spike in bankruptcy filings shows just how hard it has been for consumers to keep up with their bills in this tough economy,” said Timothy M. Warren Jr., CEO of The Warren Group.
A Chapter 7 bankruptcy filing is the most common option for individuals who are seeking relief from their debts and accounted for 87 percent of bankruptcy filings tracked by The Warren Group in Connecticut during the second quarter of 2009.
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 slid in the second quarter compared to a year ago but increased from the first quarter 2009. There were 309 Chapter 13 filings in the second quarter, a 37.1 percent drop from 491 during the second quarter in 2008. But Chapter 13 filings climbed 8.4 percent from 285 the previous quarter. A total of 594 debtors filed for Chapter 13 bankruptcy during the first six months of 2009, down 41.6 percent from 1,018 a year ago.
Data for every county in the state is available to members of the media by request.
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.