The team at www.OnlineBKmanager.com is responding to help dealerships after seeing the latest bankruptcy data because a pool of more than 750,000 potential customers has developed so far this year.
According to data through July provided by Epiq Systems, the American Bankruptcy Institute (ABI) reported there have been 448,295 bankruptcy filings submitted nationwide so far this year while 317,354 cases were discharged during the first seven months of 2019.
July’s filing figure also represented a 3% jump year-over-year.
Site president Robert Davies explained this data presents an opportunity for franchised dealers to partner with www.OnlineBKmanager.com, which specializes in marketing to recent bankruptcy consumers.
“We are seeing consistent quantities of bankruptcy leads,” Davies said in a news release. “Every business day, we are publishing around 5,000 fresh leads nationwide. These are folks who filed or discharged a bankruptcy the day before.
“These are good people who are just dealing with a crummy situation,” Davies said. “With the steady increase in leads our dealers are experiencing strong response and our lender partners are happy to be offering auto loans in this growing market. It is a win-win-win situation.”
In order to meet marketing demands, www.OnlineBKmanager.com has announced the addition of a full-service mailing option exclusively for its active dealer base.
“Our dealer partners now have the ability to target bankruptcy customers the day after they file and discharge, at the first trade cycle after the bankruptcy and anywhere in between,” Davies said.
“We know 37% of our leads will buy within 30 days of discharge and most car buyers trade every four years,” he continued. With this product addition, our dealers can easily and effectively target all consumers within the bankruptcy cycle.”
Avid Acceptance, an indirect subprime finance company focused on originations with consumers with open and discharged Chapter 7 and 13 bankruptcies, also shared its assessment of the current bankruptcy growth.
“Avid Acceptance originations have increased significantly from the same period one year ago,” Avid Acceptance executive vice president of marketing Mark Ford said.
“Our underwriting guidelines are designed to assist dealers with new opportunities within this growing segment of the marketplace," Ford continued. "We are committed to be the leader in providing automotive dealers financing options and solutions for their retail bankruptcy customers.”
Buy-here, pay-here dealerships might see their potential buyer base grow as summer rolls along, stemming from the jump in bankruptcies filed in July.
According to data provided by Epiq Systems, the American Bankruptcy Institute (ABI) reported this week that total U.S. bankruptcy filings increased 3% year-over-year in July. Total filings came in at 64,283, up from the July 2018 total of 62,241.
ABI also pointed out the 61,025 consumer filings in July represented a 3% increase from the previous year’s consumer total of 59,110.
Officials added July business filings increased 4% to 3,258 from last July’s business total of 3,131. The 417 commercial Chapter 11 filings in July marked a 1% increase over the 413 commercial Chapter 11 filings last July.
“Amid increasing debt loads and growing global challenges, bankruptcy provides financial shelter for distressed consumers and businesses,” ABI executive director Samuel Gerdano said in a news release.
“Congress recently passed legislation that will provide better access to the financial fresh start of bankruptcy for struggling small businesses, veterans and family farmers,” Gerdano continued.
ABI recapped that on Aug. 1 the U.S. Senate passed the Small Business Reorganization Act of 2019 (H.R. 3311), the Honoring American Veterans in Extreme Need Act of 2019 (H.R. 2938) and the Family Farmer Relief Act of 2019 (H.R. 2336) by a voice vote. Officials explained the three bills modernize the bankruptcy code to ensure that “struggling veterans, Main Street businesses and family farmers have access to better tools for achieving a financial fresh start.”
ABI testified in support of the three bills, and the legislation will now proceed to President Trump for signature into law.
Turning back to the latest data, ABI also mentioned July’s total bankruptcy filings rose 5% from last month’s total of 61,079. Consumer filings also climbed 5% from the 58,003 filings in June.
Commercial filings represented a 6% increase over last month’s total of 3,076. However, commercial Chapter 11 filings dropped 2% from the June total of 425.
ABI went on to note the average nationwide per capita bankruptcy filing rate in July was 2.50 (total filings per 1,000 per population), a slight decrease from the filing rate of 2.51 during the first six months of 2019.
Average total filings per day in July were 2,962, a 4% decrease from the 3,072 total daily filings last July.
States with the highest per capita filing rates (total filings per 1,000 population) in July included:
1. Alabama (5.61)
2. Tennessee (5.39)
3. Georgia (4.31)
4. Mississippi (4.25)
5. Nevada (3.79)
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 many economic and auto-finance metrics moved up or down during the first half of 2019, the American Bankruptcy Institute discovered total bankruptcy filings were not among those trends.
According to data collected by Epiq Systems, ABI reported that total bankruptcies through June came in nearly unchanged, producing just a 0.04% increase. The 388,463 filings during the first half of 2019 were slightly more than the 388,324 filings during the first six months of 2018.
The 368,932 total consumer filings for the first half of 2018 represented a 0.05% drop from the consumer filing total of 369,114 for the first half of 2018.
ABI pointed out total commercial Chapter 11 filings during the first six months of the year increased 5% to 2,854 from the 2,716 total filings during the same period in 2018.
Officials noted total commercial filings also increased slightly to 19,531 during the first six months of 2019, a 2% increase from the 19,210 total commercial filings during the same period a year ago.
“Access to the financial fresh start of bankruptcy is crucial to struggling families and small businesses,” said ABI executive director Samuel Gerdano, who recently announced plans to retire after being with the organization since 1991.
The latest data also showed total bankruptcy filings in June fell 4% to 61,048 from the 63,753 total filings in June of last year. Noncommercial bankruptcies for June also decreased 4% to 57,996 from the 60,674 filings in the same month in 2018.
Commercial Chapter 11 bankruptcies for June 2019 totaled 425, representing a 38% increase from the 309 commercial Chapter 11 filings a year ago. Total commercial bankruptcies slipped to 3,052 filings in June from the 3,079 registered a year earlier.
Officials went on to mention the average nationwide per capita bankruptcy filing rate for the first six months of 2019 decreased slightly to 2.51 (total filings per 1,000 per population) from 2.53 for the first five months.
The average total filings per day in June were 3,052, a 1% increase from the 3,036 total daily filings in June.
States with the highest per capita filing rate (total filings per 1,000 population) through the first six months of 2019 included:
1. Alabama (5.57)
2. Tennessee (5.36)
3. Georgia (4.29)
4. Mississippi (4.22)
5. Illinois (3.78)
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 executive director to retire
As referenced earlier, the executive committee of the American Bankruptcy Institute’s board of directors recently announced that Gerdano will be retiring.
“For nearly three decades, Gerdano has tirelessly championed the advancement of the insolvency industry through dedication to ongoing research and study, engagement with all industry stakeholders, and the introduction of ABI’s valuable work to third parties, including the courts and government,” according to the ABI Executive Committee announcement.
While currently under contract through 2020, Gerdano will continue as ABI’s executive director until a successor is named and a transition is effectuated.
“I want to express my deep appreciation for the honor to work with and benefit from so many extraordinary volunteers over the years, along with our talented professional staff,” Gerdano said.
“ABI has allowed me to engage with the most impressive thought leaders from the insolvency community and I’m grateful for the chance to support our collective goals and priorities.”
Gerdano has served as ABI executive director since May 1991. From 1985 to 1991, he served as the chief legal counsel to Sen. Chuck Grassley (R-Iowa) and staff director for the subcommittee on courts and administrative practice of the Senate Judiciary Committee.
Through this experience, he has been involved in all major bankruptcy policy changes since 1985, according to a news release from ABI.
“ABI has benefitted tremendously from the experience and dedication that Sam brought to his role as Executive Director over the years,” said ABI president Alane Becket of Becket and Lee, located in Malvern, Pa.
“He has steered the ABI through many changes in the law and industry and it would not be the premier insolvency organization that it is today without his stewardship. We will miss Sam’s quiet, strong presence and leadership,” Becket continued.
ABI’s executive committee has formed a search committee and is working with Sterling Martin Associates to assist in conducting the search.
“ABI has demonstrated great innovation and growth over the last 28 years,” Gerdano said. “I’m very optimistic about ABI’s continued ability to serve our members effectively and provide real value for the next generation.”
The second quarter began with a rise in bankruptcy filings.
According to data provided by Epiq Systems, the American Bankruptcy Institute (ABI) reported on Monday that total U.S. bankruptcy filings increased in April by 2% year-over-year. Officials tabulated that bankruptcy filings totaled 71,260 in April, up from the total of 69,781 record in the same month last year.
ABI noted the 67,817 consumer bankruptcy filings in April also represented a 2% lift above the April 2018 consumer total of 66,510.
Total commercial filings increased 5% in April as the 3,443 filings were up from the 3,271 commercial filings registered in April of last year. Total commercial Chapter 11 filings increased 11% to 440 in April, jumping from the year-ago figure of 395.
“The costs of accessing the promised fresh start of bankruptcy add another challenge to families and businesses struggling with heavy debt burdens,” ABI executive director Samuel Gerdano said.
Looking on a sequential basis, ABI noted April’s commercial filing total represented a 5% increase from the March when the total came in at 3,292.
Officials pointed out total bankruptcy filings for April decreased 3 percent when compared to the 73,500 total filings recorded during the previous month. Total noncommercial filings for April also represented a 3% decrease from the March 2019 noncommercial filing total of 70,208.
Commercial chapter 11 filings fell 2% from the 448 filings in March, according to ABI.
The information shared by Epiq Systems went on to mention the average nationwide per capita bankruptcy filing rate in April was 2.50 (total filings per 1,000 per population), a slight increase from the 2.42 filing rate during the first three months of the year.
Average total filings per day in April were 3,239, a 3% decrease from the 3,323 total daily filings in April of last year.
States with the highest per capita filing rates (total filings per 1,000 population) in April included:
1. Alabama (5.65)
2. Tennessee (5.42)
3. Mississippi (4.40)
4. Georgia (4.26)
5. Illinois (3.83)
ABI has partnered with Epiq Systems, a 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.
As commercial filings spiked, the American Bankruptcy Institute reported that consumer filings softened in February.
According to data provided by Epiq Systems, total bankruptcy filings decreased 1 percent to 56,118 in February from the 56,732 cases filed in February of last year.
Consumer filings dropped 2 percent in February to 52,979 from the consumer filing total of 53,870 registered during February 2018.
Meanwhile, the latest data showed total commercial Chapter 11 filings in February soared 60 percent over the same period last year. The 681 commercial Chapter 11 filings in February were up from the 425 commercial Chapter 11 filings finalized during the same month a year ago.
Total commercial filings came in at 3,139 in February, representing a 10-percent jump from the 2,862 business filings recorded in February 2018.
“Fluctuating market conditions and high filing costs continue to be a challenge for struggling consumers and businesses seeking the financial fresh start of bankruptcy,” ABI executive director Samuel Gerdano said.
ABI noted the February commercial Chapter 11 filing total of 681 represented an 86 percent increase over the previous month’s commercial filing total of 366.
February’s 3,139 commercial filings increased 7 percent over the 2,927 filings recorded in January.
Total bankruptcy filings, however, fell 3 percent in February from January’s total of 57,632 filings.
Total noncommercial filings also declined 3 percent from the previous month, dipping from 54,705 filings in January to 52,979 filings in February.
Officials went on to mention the average nationwide per capita bankruptcy-filing rate in February was 2.20 (total filings per 1,000 per population), a slight decrease from January’s rate of 2.23.
Average total filings per day in February were 2,984, a 3 percent decrease from the 3,073 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 (5.25)
2. Tennessee (5.05)
3. Mississippi (4.10)
4. Georgia (4.10)
5. Arkansas (3.53)
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.
Bankruptcy filings jumped on both a year-over-year and month-over-month basis to begin 2019.
According to data provided by Epiq Systems, the American Bankruptcy Institute reported that U.S. bankruptcy filings increased 11 percent in January from December. Officials said bankruptcy filings totaled 57,618 in January, up from the 52,037 total filings registered in December.
Consumer filings also increased 11 percent in January to 54,711 from the December noncommercial filing total of 49,105.
Conversely, the January commercial filing total of 2,907 represented a 1-percent decrease from the December commercial filing total of 2,932, and January’s 365 commercial Chapter 11 filings fell 20 percent from the 455 commercial Chapter 11 filings recorded in December.
“Struggling businesses and families trying to climb out of financial distress are confronted with high filing costs and challenging global economic conditions,” ABI executive director Samuel Gerdano said.
“ABI’s Commission on Consumer Bankruptcy will release a report in the Spring to improve the bankruptcy system for financially strained consumers, while recommendations from ABI’s Chapter 11 Reform Commission provide a blueprint to improve bankruptcy access for troubled businesses,” Gerdano continued.
Looking at the data on a year-over-year comparison, officials determined total bankruptcy filings in January increased 5 percent from the same month in 2018, which had 54,650 filings.
Consumer filings increased 6 percent in January 2019 to 54,711 from the January 2018 consumer filing total of 51,758.
Total commercial filings also increased slightly year-over-year in January as the figure represented a 1-percent rise from the 2,892 business filings recorded in January 2018.
Officials went on to mention the average nationwide per capita bankruptcy-filing rate in January was 2.23 (total filings per 1,000 per population), a decrease from December’s rate of 2.43. Average total filings per day in January were 2,744, a 6-percent increase from the 2,602 total daily filings recorded in January.
States with the highest per capita filing rates (total filings per 1,000 population) in January included:
1. Alabama (5.30)
2. Tennessee (5.05)
3. Mississippi (4.19)
4. Georgia (4.13)
5. Arkansas (3.65)
ABI has partnered with Epiq Systems, a 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 American Bankruptcy Institute highlighted that total filings in 2018 represented a decrease for the ninth year in a row.
According to data provided by Epiq Systems, total bankruptcy filings in 2018 dropped 2 percent year-over-year. Filings fell from 766,761 cases in 2017 to 755,182 filings in 2018.
Officials indicated total consumer filings also decreased to 717,360 nationwide in 2018, which came in 2 percent less than the 728,299 total filings during 2017.
The 37,822 total commercial filings in 2018 also slipped 2 percent from the commercial filing total of 38,462 in 2017.
The commercial Chapter 11 filing total of 5,470 in 2018 represented a 5-percent drop from the 5,762 commercial Chapter 11 filings in 2017.
During the current federal government shutdown, officials pointed out that courts remain open to those needing to file for bankruptcy.
“Total filings fell for the ninth consecutive year as high filing costs continue to weigh on struggling businesses and families,” ABI executive director Samuel Gerdano said.
Looking at just the December data, total bankruptcy filings for the month dropped 1 percent to 52,020 from the 52,545 filings in December 2017. The 49,127 total noncommercial filings for December also represented a 1-percent decrease from the December 2017 noncommercial filing total of 49,473.
The average nationwide per capita bankruptcy filing rate for calendar year decreased slightly to 2.43 (total filings per 1,000 per population) from the 2.47 rate during 2017. States with the highest per capita filing rate (total filings per 1,000 population) through 2018 included:
1. Alabama (5.63)
2. Tennessee (5.38)
3. Georgia (4.57)
4. Mississippi (4.25)
5. Illinois (3.66)
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 certain commercial filings spiked, the American Bankruptcy Institute reported that consumer cases ticked lower in November.
According to data provided by Epiq Systems, total U.S. bankruptcy filings in November generated a 2-percent decrease year-over-year with the figure coming in at 58,887 cases. The November 2017 total was 60,327.
Consumer bankruptcies also decreased in November as the 55,702 filings represented a 3-percent dip compared to the 57,288 consumer filings registered in November of last year.
Conversely, officials noticed commercial Chapter 11 filings increased 50 percent year-over-year in November. The 653 commercial Chapter 11 filings registered in November jumped from the commercial Chapter 11 filing total of 435 in the same month a year ago.
Commercial bankruptcy filings totaled 3,185 in November, a 5-percent increase from the 3,039 commercial filings in November of last year.
“Filing costs may divert distressed consumers and businesses from the financial relief of bankruptcy,” ABI executive director Samuel Gerdano said.
“The recent introduction of the Small Business Reorganization Act of 2018 is a positive step toward reducing the costs and burdens on struggling small and medium businesses. Ongoing efforts of the Commission on Consumer Bankruptcy are also aiming to improve access for struggling families seeking a fresh start through bankruptcy,” Gerdano continued.
Gerdano explained the Small Business Reorganization Act of 2018 is based on some of the recommendations of ABI’s commission to study the reform of Chapter 11 to reinstate reorganization under the bankruptcy code as a viable option for small and medium enterprises. Both S. 3689, sponsored by Senate Judiciary Chairman Charles Grassley (R-Iowa) and co-sponsored by Sen. Sheldon Whitehouse (D-R.I.), and H.R. 7190, sponsored by Rep. Doug Collins (R-Ga.) and co-sponsored by Reps. David Cicilline (D-R.I.) and Tom Marino (R-Pa.), were introduced on Nov. 29.
ABI’s commission on consumer bankruptcy will be releasing its final report of recommendations for improving the consumer bankruptcy system at ABI’s 2019 annual spring meeting in April in Washington, D.C.
Turning back to the latest data, ABI noted that the commercial Chapter 11 filings in November represented a 17-percent increase over the 557 filings recorded in October, although November’s commercial filing total represented a 6 percent decrease from the October commercial filing total of 3,398.
Total filings for November decreased 13 percent compared to the 67,570 total filings in October 2018. Total noncommercial filings for November also represented a 13 percent decrease from the October 2018 noncommercial filing total of 64,172.
Officials went on to mention the average nationwide per capita bankruptcy filing rate (total filings per 1,000 population) was 2.47 for the first 11 calendar months of 2018, a slight decrease over the 2.49 rate registered during the first 10 months of the year.
The average daily filing total in November was 2,944, a slight decrease from the 3,016 total daily filings registered in November of last year.
States with the highest per capita filing rates (total filings per 1,000 population) through the first 11 months of 2018 were:
1. Alabama (5.72)
2. Tennessee (5.48)
3. Georgia (4.60)
4. Mississippi (4.31)
5. Illinois (3.73)
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.
The fourth quarter began with an uptick in bankruptcy filings; perhaps providing a potential lift of buy-here, pay-here dealership customers as store operators head toward the early portion of tax season.
The American Bankruptcy Institute (ABI) indicated that consumer filings in October rose 5 percent. According to data provided by Epiq Systems, total U.S. bankruptcy filings last month came in at 67,546, up from the 64,616 cases posted during October of last year.
Consumer bankruptcies also increased in October as the 64,175 filings were 4 percent more than the 61,575 consumer filings registered in October 2017.
On the business side, ABI pointed out that commercial Chapter 11 filings spiked 75 percent year-over-year. The 554 commercial Chapter 11 filings registered in October were up from the 316 cases completed during the same month a year ago.
The latest data showed commercial bankruptcy filings totaled 3,371 in October, an 11 percent increase from the 3,041 commercial filings in October of last year.
“Bankruptcy provides a shield for distressed consumers and businesses confronted with rising interest rates and global economic challenges,” ABI executive director Samuel Gerdano said.
“The recommendations of ABI’s Chapter 11 Commission and the ongoing efforts of the Commission on Consumer Bankruptcy aim to improve the system for struggling businesses and families seeking a fresh start through bankruptcy,” Gerdano continued.
Looking at the data on a sequential basis, officials determined that total filings for October increased 17 percent compared to the 57,596 total filings in September. Total noncommercial filings for October also represented a 17-percent rise from the September noncommercial filing total of 54,788.
ABI went on to mention commercial Chapter 11 filings in October constituted a 79-percent climb versus the 309 filings recorded in September. October’s commercial filing total represented a 20 percent increase from the September 2018 commercial filing total of 2,889.
The average nationwide per capita bankruptcy filing rate (total filings per 1,000 population) was 2.49 for the first 10 calendar months of the year, a slight increase over the 2.48 rate registered during the first nine months of the year.
The average daily filing total in October was 3,070, a slight decrease from the 3,077 total daily filings registered last October.
States with the highest per capita filing rates (total filings per 1,000 population) through the first 10 months of the year included:
1. Alabama (5.74)
2. Tennessee (5.54)
3. Georgia (4.61)
4. Mississippi (4.34)
5. Illinois (3.77)
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.
The American Bankruptcy Institute noticed that filings slowed as the third quarter closed.
According to data provided by Epiq Systems, total U.S. bankruptcy filings totaled 57,569 in September, down 4 percent from last September’s figure of 60,050.
Officials pointed out the 54,786 consumer filings in September also represented a 4-percent decrease from the September 2017 consumer total of 57,110.
Commercial Chapter 11 filings totaled 308 in September, a 31-percent decline year-over year. Overall business filings dipped to 2,783 cases in September, a 5-percent drop from last September’s total of 2,940 filings.
“Struggling businesses and consumers faced with increasing interest rates and global challenges may avoid bankruptcy due to high filing costs,” ABI executive director Samuel Gerdano said. “The recommendations of ABI’s Chapter 11 Commission and the ongoing efforts of the Commission on Consumer Bankruptcy provide paths to making bankruptcy more accessible for distressed businesses and households.”
Looking at data from the first nine months of the year, ABI shared that total U.S. bankruptcy filings fell 2 percent compared to the same period a year ago. Through three quarters of 2018, the courts saw 576,610 filings, down from 589,252 a year earlier.
The 548,361 total noncommercial filings through the first three quarters of 2018 also represented a 2-percent drop from the noncommercial filing total of 559,958 through the first three quarters of 2017.
Commercial bankruptcy filings during the first nine months of the year decreased 4 percent to 28,249 from the 29,294 filings during the same period in 2017. Commercial chapter 11 filings also decreased during the first nine months of 2018 as the 3,796 filings represented a 12-percent drop from the 4,306 chapter 11 filings during the first nine months of 2017.
ABI went on to mention the average nationwide per capita bankruptcy filing rate for the first nine calendar months of 2018 decreased slightly to 2.48 (total filings per 1,000 population) from the 2.49 rate for the first eight months of the year.
The average daily filing total in September 2018 was 3,030, a 1-percent increase from the 3,002 total daily filings registered in September of last year.
States with the highest per capita filing rates (total filings per 1,000 population) through the first nine months of 2018 were:
1. Alabama (5.68)
2. Tennessee (5.52)
3. Georgia (4.60)
4. Mississippi (4.28)
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.
