What Congressional lawmakers and the White House do in the coming days to enhance federal assistance to help consumers and businesses get through the coronavirus pandemic are likely to impact bankruptcy filings, according to the executive director of the American Bankruptcy Institute (ABI).
According to data provided by Epiq, ABI reported that bankruptcy filings declined in June as well as through the first half of the year. But ABI executive director Amy Quackenboss can see a scenario where the trends reverse.
“Businesses and consumers continue to navigate a challenging economic course as a result of the financial crisis due to the COVID-19 pandemic,” Quackenboss said in a news release. “As government lifelines to help stabilize the economy begin to expire, bankruptcy provides a shield for households and companies facing intensifying financial distress. We anticipate filings to begin increasing as a result.”
Epiq’s data showed total bankruptcy filings decreased to 298,080 during the first six months of 2020, representing a 23% decrease from the 388,594 total filings during the same period a year ago.
Officials indicated total consumer filings registered a 24% decrease as the 280,649 filings during the first half of 2020 declined from the 368,953 filings during the first six months of last year.
ABI went on to note that the 17,431 total commercial filings for the first half of 2020 represented an 11% drop from the commercial filing total of 19,641 for the first half of 2019.
Looking just at June, officials found that total bankruptcy filings dropped 31% to 42,416 from the 61,102 total filings in June of last year.
Noncommercial bankruptcies for June decreased 32% to 39,719 from the 58,005 filings last June.
On the business front, ABI recapped that total commercial Chapter 11 bankruptcies for June were 609, representing a 44% increase from the 424 commercial Chapter 11 filings in June of last year.
According to Epiq’s data, there were a number of notable Chapter 11 cases filed in June, including two more Catholic Dioceses, numerous large energy-related cases including Chesapeake Energy, and a number of well-known national companies such as 24 Hour Fitness, General Nutrition, Libbey Glass and Chuck E. Cheese.
Officials added more than one-half of the Chapter 11 cases filed during the month were actually associated cases filed by the subsidiaries of a larger financial group.
ABI pointed out that total commercial bankruptcies slipped to 2,697 filings in June, a 13% decrease from the 3,097 registered during June of last year.
Also of note, officials determined the average nationwide per capita bankruptcy filing rate for the first six calendar months of 2020 decreased slightly to 1.92 (total filings per 1,000 per population) from 1.98 for the first five months. The average total filings per day in June were 1,928, a 37% decrease from the 3,055 total daily filings in June of last year.
States with the highest per capita filing rate (total filings per 1,000 population) through the first six months of 2020 included:
1. Alabama (4.46)
2. Delaware (3.89)
3. Tennessee (3.88)
4. Mississippi (3.49)
5. Georgia (3.25)
ABI has partnered with Epiq, a leading provider of managed technology for the global legal profession, in order to provide the most current bankruptcy filing data for analysts, researchers and members of the news media.
At least initially, federal government intervention to help individuals and business hit financially by the coronavirus pandemic have made a positive impact in terms of bankruptcy filings.
But experts suspect conditions will deteriorate in this part of the financial world as those assistance packages expire.
According to data provided by Epiq, the American Bankruptcy Institute (ABI) reported that the 39,969 total bankruptcy filings in May were down 42% from the 68,860 total filings in May of last year.
ABI also pointed out the total consumer filings decreased 43% in May, as the 37,391 filings fell from the 65,302 consumer filings registered last May.
Meanwhile, Epiq’s data also showed total commercial filings declined 28% in May, as the 2,578 filings were down from the 3,558 commercial filings completed in May of last year.
“Companies that tried to shore up their balance sheets at the beginning of the year represent the initial wave of chapter 11s due to the economic crisis brought about by the COVID-19 pandemic,” ABI executive director Amy Quackenboss said in a news release.
“The CARES Act and other swift government measures have been successful in keeping consumers afloat during the crisis,” Quackenboss continued. “As this relief runs its course, however, mounting financial challenges may result in more households and companies seeking the shelter of bankruptcy.”
Looking at a sequential comparison, ABI noted total bankruptcy filings in May constituted a 4% increase over the 38,444 total filings recorded in April. Total noncommercial filings for May also marked a 3 percent increase from the April noncommercial filing total of 36,151.
Officials said the average nationwide per capita bankruptcy filing rate in May came in at 1.98 (total filings per 1,000 per population), a decrease from the 2.09 filing rate during the first four months of the year.
Average total filings per day in May stood at 1,998, a 36% decrease from the 3,130 total daily filings in May of last year.
ABI shared that states with the highest per capita filing rates (total filings per 1,000 population) in May included:
1. Alabama (4.66)
2. Tennessee (4.05)
3. Delaware (3.90)
4. Mississippi (3.64)
5. Georgia (3.45)
ABI has partnered with Epiq, a leading provider of managed technology for the global legal profession, in order to provide the most current bankruptcy filing data for analysts, researchers and members of the news media.
The latest bankruptcy filing data is being described as “a calm before the storm,” as businesses have been turned upside down because of the coronavirus pandemic.
According to data provided by Epiq Systems, the American Bankruptcy Institute (ABI) reported that total commercial Chapter 11 bankruptcy filings for the first quarter increased 14% year-over-year. The figure moved from 1,500 cases to 1,709 commercial Chapter 11 filings recorded through March 31.
Overall commercial filings rose 4% year-over-year during the first quarter, according to ABI, climbing from 9,481 total commercial filings to 9,817 cases.
However, officials noticed that total bankruptcy filings in Q1 actually declined year-over-year.
ABI reported that total bankruptcy filings decreased 5% to 177,198 from the 187,325 filings during the same period of 2019.
The latest data also showed consumer bankruptcy filings dropped 6% over the first three months of 2020 to 167,381 from the 177,844 consumer filings during the same stretch last year.
But ABI executive director Amy Quackenboss expects future bankruptcy data installments to show much different situations.
“The first quarter filings represent a calm before the storm of the financial distress caused by the COVID-19 pandemic,” Quackenboss said in a news release. “Consumers and businesses face growing financial challenges due to the pandemic, and bankruptcy provides a vital safe harbor from their mounting debts.
“We anticipate business filings to start rising this month and consumer filings to start to accelerate in early summer,” she continued.
Looking at just March information, total bankruptcy filings sunk 15% to 62,847 cases from the 73,522 total filings registered a year earlier.
Total commercial filings in March also decreased, softening 5% to 3,167 from the 3,317 business filings recorded in March of last year.
ABI determined the average nationwide per capita bankruptcy filing rate for the first three months of 2020 increased to 2.29 (total filings per 1,000 per population) from the 2.21 filing rate of the first two months of the year.
States with the highest per capita filing rates (total filings per 1,000 population) during Q1 included:
1. Alabama (5.47)
2. Tennessee (5.05)
3. Mississippi (4.45)
4. Georgia (4.34)
5. Arkansas (3.56)
ABI has partnered with Epiq Systems, a leading provider of managed technology for the global legal profession, in order to provide the most current bankruptcy filing data for analysts, researchers and members of the news media.
On Monday, the American Bankruptcy Institute (ABI) reported nearly steady movements in total and consumer filings for February, but experts fully anticipate significant changes coming as a result of the COVID-19 pandemic impact on the economy.
According to data provided by Epiq Systems, total bankruptcy filings ticked up 0.1% to 56,182 in February from the 56,144 cases filed in February of last year. Consumer filings edged 0.3% higher in February to 53,098 from last February’s consumer filing total of 52,941.
ABI also reported total commercial Chapter 11 filings in February 2020 decreased 20% the same period last year, Inc. The 547 commercial Chapter 11 filings in February were down from the 685 commercial Chapter 11 filings in February of last year.
Officials determined total commercial filings came in at 3,084 in February, representing a 4% decrease from the 3,203 business filings recorded in February of last year.
“As businesses close and the supply chain endures disruptions due to the COVID-19 coronavirus, bankruptcy provides distressed businesses and consumers the financial shelter they need in these challenging times,” ABI executive director Amy Quackenboss said in a news release.
“While the statistics might not show the immediate effects, we expect filings to increase as a result of the financial impact of the COVID-19 pandemic,” Quackenboss added.
ABI hosted a webinar last week featuring a panel of experts that shed light on the impact, and likely reaction, from various sectors of the economy, as well as suggestions on what may be around the corner in the world economy. Go to this website to watch a replay of the webinar.
Looking at the data based on a sequential comparison, officials indicated total bankruptcy filings fell 3% in February from January’s total of 58,150 filings. They said total noncommercial filings also declined 3% from the previous month, from 54,615 filings in January to 53,098 filings in February.
ABI pointed out the February commercial Chapter 11 filing total of 547 represented a 13% decrease compared to the previous month’s commercial filing total of 630. February’s 3,084 commercial filings also dropped 13 percent versus the 3,535 filings recorded in January.
Officials went on to mention the average nationwide per capita bankruptcy filing rate in February was 2.21 (total filings per 1,000 per population), a slight decrease from January’s rate of 2.25. Average total filings per day in February were 2,957, a slight increase from the 2,955 total daily filings recorded in February of last year.
States with the highest per capita filing rates (total filings per 1,000 population) in February included:
1. Alabama (5.33)
2. Tennessee (5.00)
3. Georgia (4.49)
4. Mississippi (4.16)
5. Arkansas (3.50)
ABI has partnered with Epiq Systems, a leading provider of managed technology for the global legal profession in order to provide the most current bankruptcy filing data for analysts, researchers and members of the news media.
Fueled in part by significant increases in commercial cases, the American Bankruptcy Institute (ABI) reported that total bankruptcy filings rose year-over-year in January.
And the sequential increase in filings was even more noticeable.
According to data provided by Epiq Systems, ABI said total bankruptcy filings increased 1% to 58,126 in January from the 57,657 cases filed in January of last year.
Officials said consumer filings decreased slightly in January to 54,626 cases from the consumer filing total of 54,696 registered a year earlier.
ABI shared a much different picture on the commercial side.
Officials indicated total commercial Chapter 11 filings in January spiked 72% over the same period last year The 630 commercial Chapter 11 filings in January were up from the 366 commercial Chapter 11 filings reported in January of last year.
ABI added total commercial filings in January came in at 3,500, representing an 18% increase from the 2,961 business filings recorded in January 2019.
“Debt-burdened businesses and consumers facing tighter lending standards, marketplace challenges and high filing costs need the shelter of bankruptcy's fresh financial start,” ABI executive director Amy Quackenboss said in a news release.
“The Small Business Reorganization Act takes effect on Feb. 19 to provide a better path for Main Street debtors to restructure their debts,” Quackenboss continued. “Also, the final recommendations of ABI’s Commission on Consumer Bankruptcy provide a blueprint for the courts, Congress and other stakeholders to modernize the Code for consumers wrestling with heavy debt loads.”
Officials also mentioned the 630 commercial Chapter 11 filings completed in January marked a 61% increase over the 391 commercial Chapter 11 cases filed in December.
ABI further pointed out the 3,500 commercial filings in January represented a jump of 21% above the 2,895 commercial filings registered in December.
Officials went on to note total U.S. bankruptcy filings increased 10% in January from the 53,053 total filings in December. Additionally, consumer filings increased 9% in January to 54,626 from the December noncommercial filing total of 50,158.
The latest data also showed the average nationwide per capita bankruptcy-filing rate in January was 2.25 (total filings per 1,000 per population), a slight decrease from December’s rate of 2.43.
Average total filings per day in January came in at 2,768, a 1% increase from the 2,746 total daily filings recorded in January of last year. States with the highest per capita filing rates (total filings per 1,000 population) in January included:
1. Alabama (5.49)
2. Tennessee (5.20)
3. Georgia (4.60)
4. Mississippi (4.22)
5. Arkansas (3.61)
ABI has partnered with Epiq Systems, a leading provider of managed technology for the global legal profession, in order to provide the most current bankruptcy filing data for analysts, researchers and members of the news media.
Total bankruptcy filings in 2019 registered the first year-over-year increase in eight years, according to analysis from the American Bankruptcy Institute (ABI).
ABI officials reviewed data provided by Epiq Systems and found total bankruptcy filings during 2019 increased 0.28% from 2018. Total filings edged up to 757,497 cases in 2019 from 755,353 filings during 2018.
Officials said total consumer filings also increased to 718,553 in 2019, representing a 0.17% lift above the 717,321 total filings completed in 2018.
ABI also pointed out the 38,944 total commercial filings during 2019 marked an increase of 2.4% from the commercial filing total of 38,032 during 2018. The commercial Chapter 11 filing total of 5,502 in 2019 constituted a 0.36% uptick from the 5,482 commercial Chapter 11 filings a year earlier.
“Two developments in the coming year will improve access to the fresh start of bankruptcy for both struggling small businesses and households,” ABI executive director Amy Quackenboss said in a news release. “The Small Business Reorganization Act becomes effective next month to provide a better path for Main Street debtors to restructure their debts.
“Also, the courts, Congress and other stakeholders continue to consider the recommendations of ABI’s Commission on Consumer Bankruptcy to modernize the bankruptcy code for consumers wrestling with overwhelming debt loads,” Quackenboss continued.
Looking just at the closing month of 2019, officials reported total bankruptcy filings in December increased 2% to 53,030 from the 52,059 filings completed in December 2018. The 50,160 total noncommercial filings for December also represented a 2% increase from the December 2018 noncommercial filing total of 49,096.
ABI indicated the 2,870 total commercial filings in December marked a 3% decrease from the 2,963 total commercial filings during the same period in 2018. Commercial Chapter 11 filings dropped 14% to 391 in December from the 456 commercial Chapter 11 filings in December 2018.
Officials went on to mention the average nationwide per capita bankruptcy filing rate for 2019 ticked up slightly to 2.44 (total filings per 1,000 population) from the 2.43 rate generated in 2018.
States with the highest per capita filing rates (total filings per 1,000 population) through 2019 included:
1. Alabama (5.62)
2. Tennessee (5.29)
3. Georgia (4.38)
4. Mississippi (4.19)
5. Illinois (3.71)
ABI has partnered with Epiq Systems, a leading provider of managed technology for the global legal profession, in order to provide the most current bankruptcy filing data for analysts, researchers and members of the news media.
Along with announcing its next executive director, the American Bankruptcy Institute (ABI) this week also shared the November filing information that showed a slowing of cases after four months in a row of increases triggered by changes in federal laws.
According to data provided by Epiq Systems, ABI reported Total U.S. bankruptcies in November registered a decrease as the 56,041 filings fell 5% from last November’s total of 58,923.
Consumer bankruptcies dipped in November, as well, as the 53,057 filings represented a 5% drop from the 55,676 consumer filings registered in November of last year.
ABI indicated commercial Chapter 11 filings resolved in November decreased 32% year-over-year. The 450 commercial Chapter 11 filings registered in November dropped from last November’s commercial Chapter 11 filing total of 662.
Officials added that commercial bankruptcy filings totaled 2,984 in November, marking an 8% decline from the 3,247 commercial filings posted in November of last year.
“High filing costs impede struggling consumers and businesses from accessing the financial relief of bankruptcy,” ABI executive director Samuel Gerdano said in a news release.
“The Small Business Reorganization Act will soon provide a better path for small businesses to restructure, and the recommendations of ABI’s Commission on Consumer Bankruptcy aim to modernize the bankruptcy code to provide better access to struggling households,” Gerdano continued.
ABI reiterated the Small Business Reorganization Act of 2019, signed into law on Aug. 23 by President Trump, becomes effective Feb. 19. Officials explained SBRA adds a new subchapter V to Chapter 11, providing what they believe is a better path for small businesses to successfully restructure, reduce liquidations, save jobs and increase recoveries to creditors.
ABI’s Commission on Consumer Bankruptcy issued its final report of recommendations earlier this year to improve access to the consumer bankruptcy system. The complete report is available here.
Turning to a look at the data based on a sequential comparison, ABI determined the total filings for November decreased 17% when measured against the 67,828 total filings in October.
Officials added the total noncommercial filings for November also represented a 17% decrease from the October noncommercial filing total of 64,277.
ABI said commercial Chapter 11 filings in November marked a 15% drop from the 527 filings recorded in October. The organization pointed out November’s commercial filing total represented a 16% decrease from the October commercial filing total of 3,551.
Officials went on to mention the average nationwide per capita bankruptcy filing rate (total filings per 1,000 population) was 2.50 for the first 11 calendar months of the year, a slight increase over the 2.49 rate registered during the first 10 months of the year.
The average daily filing total in November was 2,950, a slight increase from the 2,946 total daily filings registered in November of last year.
ABI pinpointed states with the highest per capita filing rates (total filings per 1,000 population) through the first 11 months of this year:
1. Alabama (5.69)
2. Tennessee (5.39)
3. Georgia (4.43)
4. Mississippi (4.24)
5. Illinois (3.75)
ABI has partnered with Epiq Systems, a leading provider of managed technology for the global legal profession, in order to provide the most current bankruptcy filing data for analysts, researchers and members of the news media.
ABI selects new executive director
In other news, the executive committee of the American Bankruptcy Institute’s board of directors announces that ABI deputy executive director Amy Alcoke Quackenboss will succeed Samuel Gerdano as ABI executive director effective Jan. 1.
Officials said Quackenboss was chosen by a search committee following a nationwide search led by Sterling Martin Associates of Washington, D.C.
Quackenboss joined the ABI staff as deputy executive director in November 2010, and added the title of general counsel in 2012.
In her capacity as deputy executive director, Quackenboss has been involved in all aspects of ABI's operations, including educational programming, publishing, information technology, staff management and budgeting. She also led a team of ABI volunteers and staff in developing ABI’s 2020-22 strategic plan, which will be released soon.
“Amy was selected from among a very distinguished group of candidates as the most qualified to succeed Sam Gerdano,” said ABI president Alane Becket of Becket & Lee, LLP of Malvern, Pa.
“Her experience and commitment to the success of the ABI is unmatched and I have no doubt she will be an exceptional leader,” Becket continued in a news release.
Prior to joining the ABI staff, Quackenboss practiced law at Hunton Andrews Kurth in Atlanta where she focused her practice on bankruptcy litigation and restructuring. She has significant experience representing lenders, secured and unsecured creditors, indenture trustees, creditors’ committees, and acquirers of assets in Chapter 11 bankruptcies.
In 2002, Quackenboss was honored with the H. Sol Clark award by the State Bar of Georgia for her commitment to pro bono work. She also clerked for U.S. Magistrate Judge Mary Stanley in the U.S. District Court for the Southern District of West Virginia from 1996 through 1998.
“Amy is perfectly suited to lead ABI, and I’m delighted she has been selected Executive Director,” said Gerdano, who announced his retirement in June after 29 years as ABI executive director.
The fourth quarter began with a double-digit climb in bankruptcies, again aided by changes in federal laws.
According to data provided by Epiq Systems, the American Bankruptcy Institute (ABI) reported this week that total U.S. bankruptcy filings came in at 67,806, representing an 11% increase from the September total of 61,132 filings.
Officials also noted the 64,279 consumer filings in October also marked an 11% jump from the previous month’s consumer total of 57,968.
On the business side, ABI indicated commercial Chapter 11 filings in October spiked 25% month-over-month. The 520 commercial Chapter 11 filings in October were up over the 417 filings registered in September.
Officials said overall commercial filings also increased in October as the 3,527 filings marked a 12% lift from the 3,164 filings in September.
“Bankruptcy provides an effective shield for financially distressed families, farmers and businesses faced with increasing debt burdens and trade costs,” ABI executive director Samuel Gerdano said in a news release.
“New bankruptcy laws are providing better access to the financial fresh start needed by struggling small businesses, veterans and family farmers,” Gerdano continued.
ABI recapped that President Trump signed three key pieces of bankruptcy legislation into law on Aug. 23.
The Small Business Reorganization Act of 2019, which is effective February, adds a new subchapter V to Chapter 11 providing what ABI believes is a better path for small businesses to successfully restructure, reduce liquidations, save jobs and increase recoveries to creditors.
The HAVEN Act revises consumer filing requirements to exclude VA and DoD disability payments from the monthly income calculation used for bankruptcy means testing.
The Family Farmer Relief Act of 2019 raised the debt limit for Chapter 12 filings for struggling family farmers or fishermen from $4.3 million to $10 million.
To view a webinar of experts discussing the new laws, go to this website.
With those law changes as a backdrop, ABI noticed a slight lift in filings when looking at the October data on a year-over-year comparison.
Total bankruptcy filings this October ticked up a bit from last October’s filing total of 67,593. The 64,279 consumer filings this October also represented a slight increase from last October’s consumer total of 64,179.
October 2019 business filings rose 3% to 3,527 from last year’s business total of 3,414. Conversely, the 520 commercial Chapter 11 filings recorded in this October represented a 7% decrease from the 557 commercial Chapter 11 filings registered in October of last year.
ABI determined the average nationwide per capita bankruptcy filing rate in October was 2.51 (total filings per 1,000 per population), a slight increase from the filing rate of 2.50 during the first nine months of this year.
Average total filings per day in October came in at 3,082, a slight increase from the 3,077 total daily filings in October of last year.
States with the highest per capita filing rates (total filings per 1,000 population) in October included:
1. Alabama (5.75)
2. Tennessee (5.47)
3. Georgia (4.43)
4. Mississippi (4.28)
5. Nevada (3.82)
ABI has partnered with Epiq Systems, a leading provider of managed technology for the global legal profession, in order to provide the most current bankruptcy filing data for analysts, researchers and members of the news media.
Triggered in part by changes in federal laws, bankruptcy filings jumped noticeably to finish the third quarter.
According to data provided by Epiq Systems, the American Bankruptcy Institute (ABI) reported total U.S. filings came in at 61,113 in September, up 6% from last September’s total of 57,619.
ABI noted the 57,984 consumer filings in September also represented a 6% increase from the consumer total of 54,797 filed in September of last year.
Officials said commercial Chapter 11 filings totaled 414 in September, a 33% increase over last September’s total of 312 filings. Overall business filings jumped 11% to 3,129 cases in September, up from the total of 2,822 business filings posted during the same month a year ago.
“Bankruptcy provides the reprieve needed for financially distressed families and businesses dealing with increasing costs and debt loads,” ABI executive director Samuel Gerdano said.
“Recently enacted laws update the bankruptcy code to improve access to bankruptcy for struggling Main Street businesses, farmers and veterans looking to achieve a financial fresh start,” Gerdano continued.
ABI recapped that the Small Business Reorganization Act of 2019, the HAVEN Act and the Family Farmer Relief Act of 2019 were signed into law by President Trump on Aug. 23. The bipartisan bills, which ABI testified in support of in June, passed the House in late July and the Senate on Aug. 1.
The provisions of the Family Farmer Relief Act and HAVEN Act are now in effect and the SBRA becomes effective in February. For more information on the legislation, watch this ABI media webinar.
Turning back to the latest data, ABI reported total U.S. bankruptcy filings rose 1% during the first nine months of the year as compared to the same period a year ago. The 580,470 filings were a slight increase from 576,749 filings in 2018.
The 551,062 total noncommercial filings through the first three quarters of the year also represented a 1% uptick from the noncommercial filing total of 548,348 through the first three quarters of 2018.
Commercial bankruptcy filings during the first nine months of the year rose 4% to 29,408 from the 28,401 filings during the same period in 2018. Commercial Chapter 11 filings also increased during the first nine months of the year as the 4,127 filings represented an 8% upturn from the 3,805 Chapter 11 filings during the first nine months of last year.
Officials went on to mention the average nationwide per capita bankruptcy filing rate for the first nine months the year edged slightly lower to 2.5 (total filings per 1,000 population) from the 2.51 rate for the first eight months of the year.
The average daily filing total in September was 3,056, a 1% increase from the 3,033 total daily filings registered last September.
States with the highest per capita filing rates (total filings per 1,000 population) through the first nine months of 2019 included:
1. Alabama (5.67)
2. Tennessee (5.45)
3. Georgia (4.41)
4. Mississippi (4.23)
5. Nevada (3.80)
ABI has partnered with Epiq Systems, a leading provider of managed technology for the global legal profession, in order to provide the most current bankruptcy filing data for analysts, researchers and members of the news media.
While the year-over-year comparison showed a decrease in consumer filings, the American Bankruptcy Institute (ABI) found that individuals seeking this financial protection climbed again in August.
According to data provided by Epiq Systems, consumer bankruptcy filings rose on a sequential basis in August as there were 63,141 consumer filings. That figure is 4% percent higher than July’s consumer total of 61,006.
Meanwhile, July generated a 3% month-over-month gain.
However, when looking at the consumer bankruptcy filing total from August and compare it to the year-ago reading, ABI pointed out the decline came in at 3% against last August’s consumer filing total of 65,316.
Overall, ABI said August bankruptcy filings totaled 66,478, representing a 3% lift month-over-month but a 3% drop year-over-year.
While smaller in total, certain percentages associated with the rises for commercial bankruptcy filings are much more notable.
Commercial Chapter 11 filings in August increased 19% year-over-year as the total rose from 364 to 432. Overall commercial filings also increased in August as the 3,337 filings were a 3% increase over the 3,231 filings in August of last year
“Increasing trade costs and rising debt loads present challenges for financially distressed families and businesses,” ABI executive director Samuel Gerdano said. “Legislation was recently signed into law providing better access to the financial fresh start of bankruptcy for struggling small businesses, veterans and family farmers.”
On Aug. 23, President Trump signed the Small Business Reorganization Act of 2019, the HAVEN Act and the Family Farmer Relief Act of 2019 into law. The bipartisan bills, which ABI testified in support of in June, passed the House in late July and the Senate on Aug. 1.
To view a webinar featuring a panel of experts discussing the new laws, go to this website.
Turning back to the latest data, ABI shared that the average nationwide per capita bankruptcy filing rate in August was 2.51 (total filings per 1,000 per population), a slight increase from the filing rate of 2.50 during the first seven months of 2019.
Average total filings per day in August were 3,022, up from the 2,980 total daily filings recorded in August of last year.
States with the highest per capita filing rates (total filings per 1,000 population) in August included:
1. Alabama (5.68)
2. Tennessee (5.45)
3. Georgia (4.40)
4. Mississippi (4.24)
5. Nevada (3.81)
ABI has partnered with Epiq Systems, a leading provider of managed technology for the global legal profession, in order to provide the most current bankruptcy filing data for analysts, researchers and members of the news media.
