Massachusetts Sees an Increase in Chapter 7 Bankruptcy Filings

According to a recent report from The Warren Group, Chapter 7 bankruptcy filings in Massachusetts have increased 58 percent in the second quarter of 2009 from the same months in 2008.

The report stated that a total of 4,489 people sought Chapter 7 bankruptcy protection from April to June, which is 2,839 more people who sought Chapter 7 bankruptcy during the same months in 2008.  In fact, the second quarter filings were higher than each of the previous five quarters.  There were more than 7,000 bankruptcy filings in the first half of 2009, whereas last year there were only 5,722 filings.

The number of bankruptcy filings during the first quarter of 2009 was also 36.6 percent higher, with 3,285 people filing for bankruptcy protection under Chapter 7.

Timothy M. Warren, Jr., CEO of The Warren Group, attributes the surge in bankruptcy filings to the poor economy, and the fact that many people aren't able to keep up with their bills as a result.

Chapter 7 bankruptcy is by far the most commonly sought after type of consumer bankruptcy, as a debtor can eliminate the majority of his or her debts by liquidating his or her non-exempt assets to repay creditors.

According to The Warren Group's findings, 82 percent of the bankruptcy filings in Massachusetts during the second quarter were under Chapter 7.

For more information about Chapter 7 bankruptcy, click here to  find a bankruptcy lawyer near you.