Total commercial Chapter 11 filings were up 26 percent to 560 in April from the April 2019 total of 444, according to data provided by Epiq Systems, Inc., the American Bankruptcy Institute reported. Total commercial filings decreased 35 percent in April, as the 2,278 filings were down from the 3,501 commercial filings registered in April 2019.
Total U.S. bankruptcy filings in April decreased 46 percent from the previous year bankruptcy filings totaled 38,428 in April, down from the April 2019 total of 71,303. The 36,150 consumer bankruptcy filings in April 2020 were down 47 percent from the April 2019 consumer total of 67,802.
“The extraordinary measures taken by Congress and the Administration to assist individuals and businesses weather the initial economic shock caused by the pandemic have likely staved off bankruptcy filings to date,” said ABI Executive Director Amy Quackenboss. “As financial challenges continue to escalate amid this crisis, bankruptcy is sure to offer a financial safe harbor from the economic storm.”
The commercial filing total represented a 28 percent decrease from the March 2020 commercial filing total of 3,182. Commercial Chapter 11 filings increased 6 percent from the 530 filings in March 2020.
April’s total bankruptcy filings represented a 39 percent decrease when compared to the 62,866 total filings recorded the previous month. Total noncommercial filings for April also represented a 39 percent decrease from the March 2020 noncommercial filing total of 59,684.
The average nationwide per capita bankruptcy filing rate in April was 2.09 (total filings per 1,000 per population), a decrease from the 2.29 filing rate during the first three months of the year. Average total filings per day in April 2020 were 3,239, a 3 percent decrease from the 3,323 total daily filings in April 2019. States with the highest per capita filing rates (total filings per 1,000 population) in April 2020 were:
- Alabama (5.02)
- Tennessee (4.44)
- Mississippi (3.99)
- Georgia (3.78)
- Delaware (3.52)
ABI recently launched its new COVID-19 Resources website for bankruptcy professionals and the public to access essential information and analysis regarding the financial distress being inflicted by the COVID-19 pandemic. The site features exclusive ABI content on the crisis, recommended member analysis, industry sector news, charts and more. New content will be added regularly, so visit and bookmark the COVID-19 Resources website here.