Commercial Chapter 11 bankruptcies in US up 54% in August
There were 634 commercial chapter 11 filings registered in August 2023, an increase of 54% the 411 filings registered in August 2022, according to data provided by Epiq Bankruptcy, the leading provider of U.S. bankruptcy filing data.
Overall commercial filings increased 14% to 2,328 in August 2023, up from the 2,045 commercial filings registered in August 2022. Small business filings, captured as subchapter V elections within chapter 11, increased 43% to 194 in August 2023, up from 136 in August 2022.
Total bankruptcy filings were 41,614 in August 2023, an 18% increase from the August 2022 total of 35,409. Individual bankruptcy filings totalled 39,286 in August 2023, also registering an 18 percent increase from the August 2022 33,364 filing total. There were 22,887 individual chapter 7 filings in August, a 21% increase versus the 18,851 filings in August 2022, and there were 16,341 individual chapter 13 filings in August, a 13% increase over the 14,457 filings the previous year.
August marks 13 consecutive months that total, individual and commercial bankruptcy filings have registered monthly year-over-year increases.
“The continued year-over-year increases indicate the anticipated growth of bankruptcy filings is becoming a reality,” said Gregg Morin, Vice President of Business Development and Revenue at Epiq Bankruptcy. “This emphasizes the critical role bankruptcy analytics plays in creating effective strategies and informed decisions when navigating an evolving market.”
August filing totals also registered increases across all filing categories when compared to July 2023. Commercial chapter 11 filings registered the largest gain from the previous month, as the August total increased 76% from the July chapter 11 filing total of 361. The commercial filing total represented a 17% increase from the July 2023 commercial filing total of 1,990. Subchapter V elections within chapter 11 increased 29% from the 150 filed in July 2023. August’s total bankruptcy filings represented a 17% increase when compared to the 35,718 total filings recorded in July. Total individual filings for August also represented a 16 percent increase from the July 2023 filing total of 33,728. Likewise, individual chapter 7s increased 18 percent and chapter 13s increased 15 percent from July.
“Elevated interest rates, rising prices due to inflation and resumption of student loan payments are just a few examples of the economic headwinds facing businesses and individuals,” said ABI Executive Director Amy Quackenboss. “Struggling families and companies looking to find their financial footing are increasingly turning to the established path of bankruptcy.”
Also Read: Chapter 11 bankruptcy filings in US rise 68% in first half of 2023
