Bankruptcies stay on established track in August
Not much change on the bankruptcy front.
Filings continued to climb with experts pointing to some of the same reasons mentioned previously for why they’ll keep rising as the year goes along.
According to data provided by Epiq AACER, total U.S. bankruptcy filings came in at 45,131 in August, representing an 8% increase from August’s total of 41,642.
Experts said individual bankruptcy filings also increased 8% year-over-year, climbing from 39,284 to 42,569.
Epiq reported the number of consumers filing for Chapter 7 in August rose 11% to 25,432, up from the 22,888 individuals who filed for Chapter 7 last August. The firm noted Chapter 13 filings happening in August increased 4% to 17,056. That’s up from the 16,338 Chapter 13 filings in August of last year.
Meanwhile, experts said overall commercial bankruptcy filings also increased 8% in August to 2,562 from 2,358 in the same month last year.
Epiq indicated August commercial Chapter 11 filings ticked 3% lower to 616 from the 635 filings in August 2023.
And experts added the number of distressed small businesses electing to file for Subchapter V of Chapter 11 of the U.S. Bankruptcy Code increased 5% to 185 last month from 176 registered in August of last year.
“August new filing volumes remained relatively flat month-over-month to end the summer while year-over-year volumes continue to show a steady increase,” said Michael Hunter, vice president of Epiq AACER.
“As delinquency rates increase in many domains, debt levels continue to grow, high interest rates remain intact with relatively flat household income, we expect continued increases in new filing volumes this fall and into the winter of 2024,” Hunter continued in a news release.
On a sequential basis, Epiq determined August’s total bankruptcy filings represented a 2% increase from July’s total of 44,439.
And total individual filings for August marked a 1% uptick from the July individual filing total of 42,083, according to Epiq.
“As debt loads continue to steadily climb, access to the financial lifeline of bankruptcy is imperative for consumers and businesses,” American Bankruptcy Institute executive director Amy Quackenboss said in the news release. “ABI remains committed to research focused on improving the availability of a financial fresh start for struggling families and businesses.”