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Report: Bankruptcy Filings Up 25 Percent In Mass.

A new report shows bankruptcy filings in Massachusetts surged by 25 percent during the first half of the year, as more individuals struggled to pay off debt.

The Warren Group, an independent publisher of real estate data, said Thursday that 11,847 bankruptcy filings under Chapter 7, Chapter 11 and Chapter 13 were made statewide during the first six months of 2010. That compares with 9,461 filings in the same period a year ago.

The report said more than three-quarters of the filers sought protection under Chapter 7, the most common form of bankruptcy for individuals.

Warren Group CEO Timothy Warren says even with the economy recovering, many consumers are still having a hard time paying off the debt they've built up over the last few years.

"This is an indication of what happens when you've got more than 9 percent unemployment for more than a year," said Vincent Valvo, of the group's Banker & Tradesman publication. "People exhaust their financial reserves, they don't have enough income coming in and eventually turn their attention to the bankruptcy court in a prayer for relief."

Valvo says bankruptcies are likely to continue to climb this year.

This program aired on July 22, 2010. The audio for this program is not available.

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