Tag Archives: new bankruptcy law

Chapter 7 vs. Chapter 13: What’s the difference?

With a Chapter 7 Bankruptcy, many types of debt can be eliminated completely. However, not everyone is eligible to file for Chapter 7 bankruptcy. Multiple factors (such as your income level, family size, medical bills, etc.) determine whether you are eligible for Chapter 7. A Rhode Island attorney experienced with bankruptcy should be able to determine if you’re eligible.

For some people a Chapter 13 Bankruptcy is the best option. People often file for Chapter 13 bankruptcy protection in order to stop foreclosure on their homes. This form of bankruptcy often involves partial repayment of debts over a three- to five-year period.

Since the passage of the new bankruptcy law (the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005), more middle class individuals have been filing for Chapter 13 bankruptcy protection.

Bankruptcy filings on the rise in Rhode Island

After the new bankruptcy law was passed in 2005, the number of bankruptcy filings in Rhode Island declined significantly.

Now the number of bankruptcy filings is rising. In the first quarter of this year 583 Rhode Islanders filed for bankruptcy, according to court records, which is nearly double last year’s filings.

bankruptcy filings are rising