Personal Bankruptcy Filings Up In 2010

HARTFORD (AP) — A new report says personal bankruptcy filings in Connecticut rose 12 percent in 2010 compared with the previous year.

The report, issued January 27 by The Warren Group, says almost 11,000 people filed for personal bankruptcy in 2010.

Most were Chapter 7 filings, in which people liquidate their assets to pay debtors. That differs from Chapter 13 filings, in which they reorganize their finances to pay off their debts in three to five years.

The Warren Group, which tracks the housing market and household trends, says many consumers appear to be struggling with debt amid the tepid economic recovery.

The company also reported 131 business bankruptcy filings last year under Chapter 11 codes, down slightly from 137 in 2009.