The number of personal bankruptcy filings in Massachusetts ballooned 41 percent in 2008 from a year earlier, according to a new report from The Warren Group, parent company of Banker & Tradesman.

There were 11,638 filings under Chapter 7 of the U.S. bankruptcy code last year, up from 8,245 in 2007 and more than double the number in 2006 when there were 4,698 filings. Nearly all of the filings, or 98 percent, were by individuals. Chapter 7 bankruptcy allows filers to eliminate most debt after non-exempt assets are used to pay off creditors. It is the most common option for individuals who are seeking relief from their debts and accounted for three-quarters of bankruptcy filings in Massachusetts last year.

"It’s clear that many consumes are hurting in this challenging economy. Job layoffs and mounting debt have pushed more and more people to file for bankruptcy protection," said Timothy M. Warren Jr., CEO of The Warren Group, publisher of Banker & Tradesman. "In the past, many desperate homeowners used to rely on home equity loans to pay off bills. But as home values have plummeted and owners are left without home equity, a growing number are resorting to bankruptcy."

Despite the increase from 2007, the number of Chapter 7 filings is still well below the level in 2005, when there were 22,413 filings. Filings spiked in 2005 shortly before a federal law went into effect that made it tougher and more expensive for people to file for bankruptcy protection under Chapter 7, according to The Warren Group. The law requires people to file under Chapter 13 if their income exceeds the median in their state. While Chapter 7 essentially wipes away debt, Chapter 13 requires debtors to arrange for a three- or five-year debt-repayment plan.

A total of 3,688 filers sought protection under Chapter 13 in 2008, down 11.2 percent from 4,154 filings in 2007, but 46 percent higher than the 2,524 filings in 2006.

Nationally, bankruptcies totaled nearly 1.1 million in 2008, an increase of more than 30 percent over 2007 filings, according to the American Bankruptcy Institute. More than 97 percent of the filings were by consumers.