US bankruptcy filings in November down 15%; Chapter 11 filings down 70%
The US bankruptcy filings in November 2021 at 29,325 filings across all chapters were down 15% from the 34,486 filings in November 2020. On month-on-month the number of filings were down 5.6% compared to 31,053 new filings in October 2021. Total commercial filings across all chapters were 1,563, down 10.3% over October 2021, which had 1,743 new filings.
For 2021 through November, the total number of new bankruptcy filings across all chapters was 373,474, down 24.7% over the same period last year which had 496,044. This downward trend continues as the COVID-19 global pandemic continues to affect bankruptcy activity.
Chapter 7 individual bankruptcies had 17,378 new filings in November, down 6.6% over October 2021, which had 18,608 new filings. Chapter 13 individual bankruptcies had 10,336 new filings, down 2.9% over the prior month that had 10,642. This is the first month in the last 6 consecutive months where new Chapter 13 filings decreased. However, as November has only 30 calendar days along with the shortened U.S. Thanksgiving holiday week, it slightly impacts month-over-month new filing comparison metrics.
Consumer bankruptcies decreased 14 percent in November 2021, as the 27,760 filings dropped from the 32,141 consumer filings registered in November 2020.
The 195 commercial Chapter 11 commercial in November 2021 represented a 70 percent decrease from the 654 filings in November 2020. Commercial chapter 11 filings in November 2021 represented a 34% decrease from the 295 filings recorded in October 2021.
The data on US bankruptcy filings have been released by Epiq, a global technology-enabled services leader to the legal services industry and corporations, from its AACER bankruptcy information services business.
“November new bankruptcy filing activity continued the downward trend since the COVID-19 global pandemic manifested in the US in March 2020. While it was a shorter month, the fact remains that new filing levels are considerably less than the pre-COVID-19 levels,” said Chris Kruse, senior vice president of Epiq Bankruptcy Technology.
Meanwhile, Executive director of American Bankruptcy Institute Amy Quackenboss says: “Bankruptcies are on pace this year to record their lowest annual total since the mid-1980s due to a number of factors, including pandemic relief programs, lender forbearances and low interest rates. As the calendar turns to 2022, the expiration of relief programs, rising inflation and supply chain challenges have created economic headwinds for consumers and businesses. Bankruptcy provides struggling families and companies with an established course for navigating financial difficulty.”
Also Read: US bankruptcy filings reverse downward trend; jump 39% in March over February
