Chapter 7 bankruptcy filings in Massachusetts rose 58 percent during the second quarter of 2009, compared to the same period last year, according to a new report from The Warren Group, a real estate research firm and publisher of Banker & Tradesman.
A total of 4,489 filers sought protection under Chapter 7 of the U.S. Bankruptcy code during the period from April through June if this year, up from 2,839 during the same period of 2008, according to Boston-based Warren Group.
The number of Chapter 7 filings during the second quarter was also 36.6 percent higher than the first quarter of this year, when 3,285 consumers sought Chapter 7 protection.
There were a total of 7,774 filings under Chapter 7 in the first half of 2009, almost a 36 percent increase from 5,722 last year, per the report.
“The dramatic jump in bankruptcy filings shows just how hard it has been for consumers to keep up with their bills in this tough economy,” said Timothy M. Warren Jr., CEO of The Warren Group, in a statement.
Chapter is the most common type of filing for individuals who are looking for debt-relief. That type of filing accounted for about 82 percent of bankruptcy filings tracked by The Warren Group in Massachusetts during the second quarter of 2009.
You do not need me to tell you that the depression is not yet over as some may suggest. Massachusetts is the home of 'mandated medical insurance' for all its citizens. Now all of these companies are going bankrupt, who will pay the insurance? The state already is out of monies and this would be an extra burden for the companies still holding on and the state of Massachusetts. Further questions arise when the Federal Universal Health plan goes into effect. How can any of these so called experts in Washington give a prediction of the cost of this universal health plan?