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September Commercial Chapter 11 Filings Up 16% Y/Y

October 04, 2017, 07:10 AM
Filed Under: Bankruptcy

Commercial chapter 11 filings totaled 425 in September, a 16 percent increase over September 2016’s total of 365 filings, according to data provided by Epiq Systems, Inc. Overall business filings decreased to 2,854 filings in September, a 12 percent drop from September 2016’s total of 3,251 filings. Total U.S. filings registered 60,001 in September 2017, down 7 percent from last September’s total of 64,635. The 57,147 consumer filings in September also represented a 7 percent decrease from the September 2016 consumer total of 61,384.

“Consumers and businesses looking to stay afloat through financial distress may steer away from the relief of bankruptcy due to high filing costs,” said ABI Executive Director Samuel J. Gerdano. “The recommendations of ABI’s Chapter 11 Commission and the ongoing efforts of the Commission on Consumer Bankruptcy aim to make bankruptcy more accessible for struggling businesses and families.”

Total U.S. bankruptcy filings fell 1 percent during the first nine months of 2017 (Jan. 1-Sept. 30) from the same period a year ago as the 589,088 filings decreased from 593,206 in 2016. The 560,239 total noncommercial filings through the first three quarters of 2017 also represented a 1 percent drop from the noncommercial filing total of 564,244 through the first three quarters of 2016. Commercial bankruptcy filings during the first nine months of the year decreased 0.4 percent to 28,849 from the 28,962 filings during the same period in 2016. Commercial chapter 11 filings also decreased during the first nine months of 2017 as the 4,200 filings represented a 3 percent drop from the 4,317 chapter 11 filings during the first nine months of 2016.

The average nationwide per capita bankruptcy filing rate for the first nine calendar months of 2017 (Jan. 1-Sept. 30) decreased slightly to 2.53 (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 2017 was 3,000, a 3 percent decrease from the 3,078 total daily filings registered in September 2016. States with the highest per capita filing rates (total filings per 1,000 population) through the first nine months of 2017 were:

  1. Alabama (5.79)
  2. Tennessee (5.62)
  3. Georgia (4.72)
  4. Mississippi (4.17)
  5. Utah (4.12)

ABI is the largest multi-disciplinary, nonpartisan organization dedicated to research and education on matters related to insolvency. ABI was founded in 1982 to provide Congress and the public with unbiased analysis of bankruptcy issues. The ABI membership includes more than 11,000 attorneys, accountants, bankers, judges, professors, lenders, turnaround specialists and other bankruptcy professionals, providing a forum for the exchange of ideas and information.

Epiq Systems is a leading provider of managed technology for the global legal profession. Epiq Systems offers innovative technology solutions for electronic discovery, document review, legal notification, claims administration and controlled disbursement of funds. Epiq System’s clients include leading law firms, corporate legal departments, bankruptcy trustees, government agencies, mortgage processors, financial institutions, and other professional advisors who require innovative technology, responsive service and deep subject-matter expertise.

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