Mass. Bankruptcies Decline In 2012
Personal bankruptcies in Massachusetts fell more than 18 percent in 2012 from the previous year, according to The Warren Group.
Chapter 7 relief accounted for more than 74 percent of the state's bankruptcy filings last year, with 11,964 filed. That was down from 14,716 in 2011. Chapter 7 allows people to eliminate most debt after using assets to pay off creditors.
Meanwhile, Chapter 13 requires debtors to arrange for a three or five-year debt repayment plan. There were 3,991 Chapter 13 filings in 2012, down 17 percent from 2011, when there were 4,813.
Worcester County was on par with the rest of the Bay State, recording a 17-percent drop in Chapter 7 bankruptcies in 2012, falling from 2,315 to 1,919. The outcome was similar in Middlesex County, which also had a nearly 20-percent decrease, from 2,597 to 2,081.
"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 The Warren Group CEO Timothy M. Warren Jr.
Chapter 11 filings, used for business bankruptcies and restructurings, were down 29 percent statewide, from 215 to 152. However, Middlesex and Worcester counties saw upticks in those filings, rising from 35 to 38 and 11 to 23, respectively.
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