Personal bankruptcy filings decrease
The number of personal bankruptcy filings in Connecticut decreased last year while the number of business bankruptcies rose slightly, according to a new report.
Chapter 7 filings for individuals seeking debt relief dropped 15 percent compared to the previous year and accounted for 86 percent of all bankruptcy filings in the state, according to real estate research firm The Warren Group.
“The drop in bankruptcy filings is an encouraging sign; it indicates that consumers are more optimistic about their ability to pay off debt and clean up their financial situations,” said Timothy M. Warren Jr, CEO of The Warren Group, in a press release. “If the housing market – and overall economy – continues to improve, we are sure to see even better results in 2013.”
While the decrease in Chapter 7 filings is a positive sign, the number of Chapter 13 filings, which require individuals to arrange three- or five-year repayment plans, increased 9 percent. Additionally, the number of Chapter 11 filings for business bankruptcies and restructuring increased 9 percent.