Report: State Bankruptcy Filings Up 66 Percent

NEW LONDON (AP) — A new report says Connecticut’s personal bankruptcy filings increased by 66 percent last year over 2007 figures.

The report, released Monday by The Warren Group, says the rise parallels increases around the country.

The report says 5,676 filings were recorded in 2008 for Chapter 7 bankruptcy protection in Connecticut, compared to 3,417 in 2007. Chapter 7 bankruptcy eliminates most debt after nonexempt assets are used to pay off creditors.

Despite the increase, the 2008 numbers are still well below the 13,204 filings in 2005.

The Warren Group report says the 2005 spike occurred just before a federal law went into effect that made it tougher and more expensive to file for bankruptcy protection.