The numbers for the first half of the year are in and our Massachusetts personal bankruptcy clients will understand: chapter 7 personal bankruptcies are up 17.6% over that period. Chapter 13 reorganizations are up 62%! While these numbers are grim, the good news is that bankruptcies tend to be a lagging economic indicator; they rise after a great fall in income and following the worst part of recessions.
“A total of 11,847 filers statewide sought protection under Chapter 7, Chapter 13, and Chapter 11 of the U.S. bankruptcy code in the first two quarters, up from 9,461 a year earlier,” according to the Warren Group. “The number of filings was also 13.7 percent higher than the previous two quarters, when there were 10,419 filings.”