The American Bankruptcy Institute projected how many filings there could be this year after learning the amount of cases reported through the first six months of 2017.
According to data provided by Epiq Systems, ABI reported that total bankruptcy filings during the first six months of the year increased 0.21 percent to 399,454 cases, a rise from the 398,627 total filings during the same period in 2016.
Total commercial filings also increased slightly, rising 1 percent to 19,765 during the first six months of 2017 from the 19,567 total commercial filings during the same period a year ago.
Consumer bankruptcies during the first half of 2017 also registered a slight increase as the 379,689 represented a 0.17 percent increase over the 379,060 consumer filings during the first six months of 2016.
However, the 3,013 total commercial Chapter 11 filings for the first half of 2017 represented a 7 percent drop from the commercial Chapter 11 filing total of 3,225 for the first half of 2016.
“The economic challenges weighing on the balance sheets of struggling consumers and companies, especially retail businesses, have them seeking the financial shelter of bankruptcy,” ABI executive director Samuel Gerdano said. “Total bankruptcies for 2017 will likely approach 800,000, a slight increase over last year.”
Looking strictly at June data, total filings during the month increased to 66,757 from the 66,338 total filings in June of last year. Total commercial bankruptcies increased to 3,385 filings in June from the 3,338 registered last June, while noncommercial bankruptcies for June increased to 63,372 from the 63,000 filings in June of last year.
The average nationwide per capita bankruptcy filing rate for the first six calendar months of 2017 increased to 2.57 (total filings per 1,000 per population) over the 2.54 filing rate of the first five months.
The average total filings per day in June were 3,034, a 1 percent increase from the 3,015 total daily filings in the same month a year ago.
States with the highest per capita filing rate (total filings per 1,000 population) through the first six months of 2017 were:
1. Alabama (5.81)
2. Tennessee (5.69)
3. Georgia (4.73)
4. Mississippi (4.16)
5. Utah (4.14)
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.
Thanks to “mounting financial pressures,” the American Bankruptcy Institute reported that total U.S. filings in May increased 5 percent year-over-year.
According to data provided by Epiq Systems, bankruptcy filings totaled 69,668 in May, up from 66,138 cases registered in May of last year.
The 66,096 consumer bankruptcy filings in May were also up 5 percent year-over-year compared to the consumer total of 62,726 cases.
Total commercial filings also climbed 5 percent in May as the 3,572 filings increased slightly over the 3,412 commercial filings registered in May of last year. However, total commercial Chapter 11 filings decreased 8 percent to 563 in May, down from the May 2016 total of 613.
“More consumers and businesses faced with mounting financial pressures are turning to the fresh start of bankruptcy,” ABI executive director Samuel Gerdano said. “Two ABI efforts are underway to modernize the Bankruptcy Code to meet the current needs of struggling households and business.”
ABI’s Commission on Consumer Bankruptcy recently started holding open meetings to gather suggested improvements that can be made to the existing consumer bankruptcy system. The Consumer Commission's next open meeting will be held on July 15 at the NACTT Annual Meeting in Seattle and is a field hearing for the Commission's Chapter 13 Committee.
The Consumer Commission, formed last December, will release its final report of recommendations at ABI’s Winter Leadership Conference in December 2018.
Turning back to the latest data, ABI pointed out total bankruptcy filings for the month of May increased 3 percent when compared to the 67,723 total filings recorded the previous month.
May’s commercial filing total represented a 7 percent increase from the April commercial filing total of 3,351. Commercial Chapter 11 filings decreased 2 percent when compared to the 575 filings in April. Total noncommercial filings for May also represented a 3 percent increase from the April noncommercial filing total of 64,372.
The average nationwide per capita bankruptcy filing rate in May was 2.57 (total filings per 1,000 per population), a slight increase from the 2.54 filing rate during the first four months of the year.
Average total filings per day in May were 3,167, a 1 percent increase from the 3,149 total daily filings in May of last year. States with the highest per capita filing rates (total filings per 1,000 population) in May were:
1. Alabama (5.82)
2. Tennessee (5.66)
3. Georgia (4.69)
4. Utah (4.14)
5. Mississippi (4.13)
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 reported that total U.S. bankruptcy filings fell nearly 4 percent year-over-year in April.
According to data provided by Epiq Systems, bankruptcy filings totaled 67,670 in April, down 3.96 percent from the 70,457 filings reported in April of last year. The 64,323 total noncommercial filings recorded in April represented a 3.93 percent decrease from last April’s total of 66,957.
Total commercial filings for April came in at 3,303, representing a 5.14 percent drop from the 3,482 filings during the same month last year. Total commercial Chapter 11 filings showed the largest change, as the 556 filings in April represented an 18.24 percent drop from the 680 filings reported last April.
“Bankruptcy filings continue to show volatility month to month and year over year, reflecting household financial pressures,” ABI executive director Samuel Gerdano said.
Also noteworthy to buy-here, pay-here dealers, the Federal Reserve Bank of New York’s Household Debt and Credit Report showed about 203,000 consumers had a bankruptcy notation added to their credit reports during the first quarter of this year. That figure is 1.7 percent lower than the same quarter last year and another record low for the New York Fed’s data series that goes back to 2003.
Turning back to the monthly data that ABI highlighted, officials mentioned the 67,670 total filings in April represented a 17.08-percent drop from the 81,610 filings recorded in March. Also, April’s 64,323 total noncommercial filings represented a 17.42 percent decrease from the 77,890 noncommercial filings posted in the previous month.
Total commercial filings also fell, with April’s 3,303 total commercial filings representing a 9.7-percent drop from the March total of 3,658. Of those commercial filings, Chapter 11 filings increased by 18.8 percent, from 468 filings in March to 556 filings in April.
The average nationwide per capita bankruptcy filing rate in April was 2.54 (total filings per 1,000 per population), a slight increase from the 2.51 filing rate of the first three months of the year. States with the highest per capita filing rate (total filings per 1,000 population) in April were:
1. Alabama (5.81)
2. Tennessee (5.65)
3. Georgia (4.73)
4. Mississippi (4.16)
5. Illinois (4.13)
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.
Three noteworthy trends associated with bankruptcies surfaced during the past two quarters.
The American Bankruptcy Institute (ABI) reported that total U.S. filings fell slightly during the first quarter but ticked higher in March compared to the same month a year ago.
And the Federal Reserve Bank of New York indicated the amount of consumers who had a bankruptcy added to their credit reports during the fourth quarter softened to a new low going back 18 years.
According to data provided by Epiq Systems, ABI indicated bankruptcy filings totaled 195,199 in the first quarter of this year, down just 0.23 percent from the 195,647 filings registered in the same quarter a year ago. The 185,868 total noncommercial filings recorded in Q1 represented a 0.27 percent decrease from the year-ago total of 186,376.
ABI noted total commercial filings for the first three months of 2017 were 9,331, representing a 1 percent increase from the 9,271 filings during the same period in 2016. Total commercial Chapter 11 filings represented the largest change, as the 1,270 cases during the first three months of 2017 represented an 11 percent drop from the 1,428 filings reported last year.
“Filing decreases are beginning to level off as more struggling businesses and households turn to the financial relief of bankruptcy,” ABI Executive Director Samuel Gerdano said. “Distress in the retail sector is pushing up the total number of business filings, and we are also seeing an uptick in consumer filings from previous months.”
Meanwhile, the New York Fed reviewed Equifax data and found about 204,000 consumers had a bankruptcy notation added to their credit reports in the fourth quarter; an amount 4 percent below the same quarter in 2015 and a new series low that goes back to 1999.
In March, ABI formed the Commission on Consumer Bankruptcy to examine the consumer bankruptcy system and issue a report with recommended improvements that can be implemented within the existing legal structure.
The 15-member expert panel aims to modernize the consumer bankruptcy system with practical and cost-effective recommendations, building on the framework established by the Bankruptcy Code of 1978 and Bankruptcy Abuse Prevention and Consumer Protection Act of 2005.
ABI also touched on data it obtained looking solely at March bankruptcy developments, which showed numerous year-over-year climbs.
For the month of March, the 81,590 total recorded filings represented an increase of 4 percent from the 78,372 filings registered in March of last year. The 77,932 total noncommercial filings in March 2017 also represented a 4 percent increase over the March total of 74,988.
Total commercial filings in March increased 8 percent to 3,658 over the 3,384 filings recorded in the same month a year ago. Commercial Chapter 11 filings increased 4 percent to 3,547 in March over the 3,407 filings the previous year.
The average nationwide per capita bankruptcy filing rate for the first three months of 2017 increased to 2.51 (total filings per 1,000 per population) from the 2.19 filing rate of the first two months of the year.
States with the highest per capita filing rate (total filings per 1,000 population) for the first quarter of 2017 were:
1. Alabama (5.92)
2. Tennessee (5.74)
3. Georgia (4.83)
4. Mississippi (4.24)
5. Illinois (4.18)
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.
After climbing for two consecutive months, the American Bankruptcy Institute noticed filing volume tapered off in February as total U.S. bankruptcy filings decreased 10 percent year-over-year.
According to data provided by Epiq Systems, bankruptcy filings totaled 58,336 in February, down from the figure generated in the same month last year, which was 64,712.
ABI also noticed consumer filings declined 10 percent in February to 55,539 from the consumer filing total of 61,651 registered in February of last year.
Total commercial filings in February were 2,797, representing a 9-percent decline from the 3,061 business filings recorded last February. The 390 total commercial Chapter 11 filings last month represented a decrease of 20 percent from the year-ago total of 485.
“After consecutive year-over-year monthly increases, the February totals reveal the prevailing trend of fewer bankruptcy filings,” ABI executive director Samuel Gerdano said. “More financially distressed consumers and businesses may reach for the lifeline of bankruptcy as interest rates increase.”
February’s data halted a streak not seen in seven years. With the total filings in both December and January increasing 5 percent over the previous year, total bankruptcies had registered back-to-back monthly gains for the first time since 2010.
While the year-over-year upward movement stopped, bankruptcy filings still ticker higher on a sequential basis.
Total bankruptcy filings for the month of February increased 6 percent compared to the 55,237 total filings registered in January. Total noncommercial filings for February (55,539) represented a 6-percent increase from the January noncommercial filing total of 52,419.
The February commercial filing total of 2,797 marked a 1-percent decrease from the January commercial filing total of 2,818. Last month’s 390 commercial Chapter 11 filings represented a 3-percent decrease from the 401 filings recorded in January.
The average nationwide per capita bankruptcy-filing rate in February was 2.19 (total filings per 1,000 per population), a slight increase from January’s rate of 2.13.
Average total filings per day in February were 3,070, a 5 percent decrease from the 3,236 total daily filings recorded in February of last year. States with the highest per capita filing rate (total filings per 1,000 population) in February were:
1. Alabama (5.42)
2. Tennessee (5.23)
3. Georgia (4.41)
4. Mississippi (3.64)
5. Illinois (3.62)
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.
It appears the chances a potential customer coming to your buy-here, pay-here dealership having recently filed for bankruptcy are on the rise.
The American Bankruptcy Institute reported total U.S. filings increased 5 percent year-over-year in January, creating a trend not seen since the New Orleans Saints won the Super Bowl.
According to data provided by Epiq Systems, bankruptcy filings totaled 55,212 in January, up from the year-ago total of 52,560. With the total filings in both December and January increasing 5 percent over the previous year, total bankruptcies registered back-to-back monthly gains for the first time since 2010.
Officials indicated consumer filings also increased 5 percent in January to 52,421, up from the January 2016 consumer filing total of 49,733. Total commercial filings decreased slightly in January to 2,791, representing a 1-percent decrease from the 2,827 business filings recorded in January of last year. The 398 total commercial Chapter 11 filings in January represented a decrease of 19 percent from the year-ago total of 494.
“While bankruptcies plunged last year to their lowest levels since the implementation of the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, filings are beginning to climb,” ABI executive director Samuel Gerdano said.
“As interest rates increase and the cost of borrowing rises, more debt-burdened consumers and businesses may seek the financial shelter of bankruptcy,” Gerdano continued.
ABI went on to mention total bankruptcy filings in January decreased 2 percent compared to the 56,414 total filings registered in December. Total noncommercial filings for January (52,421) also represented a 2-percent decrease from the December noncommercial filing total of 53,469.
The January commercial filing total of 2,791 marked a 5-percent decrease from the December commercial filing total of 2,945. January’s 398 commercial Chapter 11 filings, however, represented an 1- percent increase from the 337 filings recorded during the previous month.
The average nationwide per capita bankruptcy-filing rate in January was 2.13 (total filings per 1,000 per population), a decrease from December’s rate of 2.48. Average total filings per day in January were 2,629, a 5-percent decrease from the 2,766 total daily filings recorded in January of last year (due to 21 filing days during the month in 2017 versus 19 filing days in January of last year).
States with the highest per capita filing rates (total filings per 1,000 population) in January were:
1. Alabama (5.43)
2. Tennessee (5.08)
3. Georgia (4.30)
4. Arkansas (3.44)
5. Illinois (3.41)
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.
A potential source of buy-here, pay-here customers — the annual figure of consumers filing for bankruptcy — dropped for the seventh year in a row. But that well of vehicle buyers who potentially have little choice but to use a BHPH dealer could improve in 2017.
The American Bankruptcy Institute shared data provided by Epiq Systems that indicated total bankruptcy filings decreased slightly for the calendar year coming in at 771,894 cases nationwide. That figure is 6 percent less than the 819,431 total filings during 2015.
ABI mentioned the 733,897 total noncommercial filings during 2016 also represented a 7-percent drop from the noncommercial filing total of 789,332 recorded 2015.
However, officials pointed out that total commercial filings during 2016 came in at 37,771, representing a 26-percent increase from the 29,920 filings for 2015. There were 5,438 commercial Chapter 11 filings during 2016, a 2-percent increase over the 5,313 commercial Chapter 11 cases filed the previous year.
“While commercial filings increased last year, total filings fell for a seventh consecutive year and bankruptcies decreased to their lowest number recorded since 2006,” ABI executive director Samuel Gerdano said.
“As the Fed raises rates in 2017 and the cost of borrowing increases, more debt-burdened consumers and businesses may seek the financial shelter of bankruptcy,” Gerdano said.
The 56,394 total bankruptcy filings for the month of December represented a 5-percent increase compared to the 53,844 filings in December of 2015. The 53,483 total noncommercial filings for December also represented a 5-percent increase from the December 2015 noncommercial filing total of 51,170.
The 2,911 total commercial filings represented a 9-percent increase from the 2,674 total commercial filings during the same period in 2015.
Conversely, the 333 commercial Chapter 11 filings in December were 17 percent lower than the 399 filings in December 2015.
Average total filings per day in December stood at 2,685, a 10-percent increase from the 2,447 total daily filings last December.
The average nationwide per capita bankruptcy filing rate for 2016 decreased to 2.48 (total filings per 1,000 per population) from the 2.63 rate during 2015.
States with the highest per capita filing rate (total filings per 1,000 population) through 2016 were:
1. Tennessee (5.57)
2. Alabama (5.48)
3. Georgia (4.75)
4. Utah (4.09)
5. Illinois (4.08)
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 reported that total bankruptcy filings in November decreased by double digits year-over-year, reinforcing an anticipation of the second-lowest annual figure in 11 years.
According to data provided by Epiq Systems, the total bankruptcy filings of 59,300 in November represented a 10-percent decrease from the year-ago total of 65,562. Consumer filings also decreased as the 56,392 filings in November were down 11 percent from the November 2015 consumer filing total of 63,251.
Meanwhile, total U.S. commercial bankruptcy filings increased 26 percent year-over-year in November.
ABI indicated commercial filings totaled 2,908 in November, up from the November 2015 total of 2,311. November marked the 13th consecutive month with a year-over-year increase in commercial filings. However, total commercial Chapter 11 filings decreased in November, as the 385 filings were 2 percent less than the 392 commercial Chapter 11 filings registered in November of last year.
“While commercial filings continue to edge up slightly over recent years, fewer consumers are turning to the financial relief of bankruptcy,” ABI executive director Samuel Gerdano said.
“Total bankruptcies remain on track for under 800,000 in 2016, the second-lowest total since (the Bankruptcy Abuse Prevention and Consumer Protection Act) was implemented in 2005,” Gerdano added
ABI pointed out that total filings for November decreased 6 percent compared to the 63,055 total filings in October. Total noncommercial filings for November also represented a 6-percent decrease from the October noncommercial filing total of 60,015.
Officials also noticed November’s commercial filing total represented a 4-percent decrease from the October commercial filing total of 3,040. Commercial Chapter 11 filings also posted a 4-percent decrease from the 402 filings recorded in October.
The average nationwide per capita bankruptcy-filing rate in November was 2.51 (total filings per 1,000 population), a slight decline from the 2.53 rate for the first 10 months of the year. Average total filings per day in November were 1,977, a 10 percent decrease from the 2,185 total daily filings in November of last year.
States with the highest per capita filing rates (total filings per 1,000 population) in November were:
1. Tennessee (5.65)
2. Alabama (5.52)
3. Georgia (4.76)
4. Utah (4.15)
5. Illinois (4.14)
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 reported that total filings fell 6 percent during the first nine months of this year compared to the figure generated through the first three quarters of last year.
According to data provided by Epiq Systems, there were 593,034 bankruptcy filings between Jan. 1 and Sept. 30. During the same span of 2015, bankruptcy filings totaled 629,754.
Officials added the 564,245 total noncommercial filings through the first three quarters of this year also represented a 7-percent drop from the noncommercial filing total of 607,310 through the first three quarters of last year.
Meanwhile, commercial bankruptcy filings during the first nine months of the year increased 28 percent to 28,789 over the 22,444 filings during the same period in 2015.
Commercial Chapter 11 filings rose slightly during the first nine months of this year as the 4,311 filings represented a 5-percent increase from the 4,091 Chapter 11 filings during the first nine months of 2015.
“The roadmap for distressed businesses to reorganize through Chapter 11 has not received a major update since 1978,” ABI executive director Samuel Gerdano said.
“As more debt-burdened companies look to the financial relief of bankruptcy, the recommendations of ABI's Commission to Study the Reform of Chapter 11 provide an updated route to navigate today's complex debt and capital structures,” Gerdano continued.
ABI also noted total commercial filings for September were 3,072, representing a 38 percent increase from the 2,219 filings during the same month last year. Commercial Chapter 11 filings increased to 364 Chapter 11 filings in September, representing an 8-percent increase over the 337 filings in September of last year.
However, the 64,592 total bankruptcy filings for the month of September represented a 4-percent decrease compared to the 67,171 filings last September. The 61,520 total noncommercial filings for September also represented a 5-percent year-over-year decrease from the September 2015 noncommercial filing total of 64,952.
The average nationwide per capita bankruptcy filing rate for the first nine calendar months of 2016 decreased slightly to 2.54 (total filings per 1,000 population) from the 2.55 rate for the first eight months of the year.
The average daily filing total in September was 2,153, a 4-percent decrease from the 2,239 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 2016 were:
1. Tennessee (5.67)
2. Alabama (5.52)
3. Georgia (4.75)
4. Illinois (4.19)
5. Utah (4.17)
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 U.S. commercial bankruptcy filings continue to surge higher, the American Bankruptcy Institute noticed an uptick in consumer filings in August, too.
According to data provided by Epiq Systems, total bankruptcy filings increased 1 percent to 68,495 in August, slightly up from the year-ago figure of 67,777. ABI indicated consumer filings constituted 65,296 of last month’s total.
In August of last year, the consumer filing total was 65,286.
ABI determined total U.S. commercial bankruptcy filings increased 28 percent in August 2016 over the same month last year, coming in at 3,199 filings. August marked the 10th consecutive month with a year-over-year increase in commercial filings.
“Debt-burdened businesses continue to turn to the financial shield of bankruptcy,” ABI executive director Samuel Gerdano said. “As distress continues in the energy and retail sectors, 2016 business bankruptcies will surpass the totals registered the past two years.”
ABI also mentioned that the total filings for August represented a 12-percent increase compared to the 61,340 total filings in July. Total noncommercial filings for August were also 12 percent more than the July noncommercial filing total of 58,385.
The average nationwide per capita bankruptcy-filing rate in August was 2.55 (total filings per 1,000 per population), a slight increase from the 2.53 rate registered in the first seven months of the year.
Average total filings per day in August were 2,210, a 1-percent increase from the 2,186 total daily filings in August of last year.
States with the highest per capita filing rates (total filings per 1,000 population) in August were:
1. Tennessee (5.63)
2. Alabama (5.45)
3. Georgia (4.69)
4. Illinois (4.23)
5. Utah (4.17)
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.
