April Bankruptcy Filings Decrease 12 Percent from Previous Year, Commercial Chapter 11s Decrease 41 Percent
Alexandria, Va.— Total bankruptcy filings in the United States decreased 12 percent in April 2015 over April of last year, according to data provided by Epiq Systems, Inc. Bankruptcy filings totaled 77,884 in April 2015, down from the April 2014 total of 88,163. Consumer filings declined 11 percent to 75,272 from the April 2015 consumer filing total of 84,762. Total commercial filings in April 2015 decreased to 2,612, representing a 23 percent decline from the 3,401 business filings recorded in April 2014. Total commercial chapter 11 filings dipped 41 percent to 405 filings in April 2015 from the 689 commercial chapter 11 filings registered in April 2014.
“Sustained low interest rates for business borrowers, flat consumer debt levels and the high costs associated with filing for bankruptcy continue to suppress the filing totals,” said ABI Executive Director Samuel J. Gerdano. “Fewer consumers and businesses are turning to the Bankruptcy Code for a financial fresh start.”
To provide distressed companies better access to the rehabilitative powers of the Bankruptcy Code, the ABI Commission to Study the Reform of Chapter 11 released its Final Report in December 2014 containing recommendations for modernizing chapter 11 business reorganizations. The Commission’s Final Report recommends improvements to the Code to account for today’s evolving corporate climate and to encourage debtors to file before they have to liquidate.
Total bankruptcy filings for the month of April represented a 5 percent decrease compared to the 81,662 total filings recorded in March 2015. Total noncommercial filings for April also represented a 5 percent decrease from the March 2015 noncommercial filing total of 79,000. April’s commercial filing total represented a 2 percent decrease from the March 2015 commercial filing total of 2,662. April commercial chapter 11 filings also decreased 2 percent when compared to the 412 filings registered the previous month.
The average nationwide per capita bankruptcy-filing rate in April was 2.74 (total filings per 1,000 per population), an increase from the 2.65 rate registered in the first three months of the year. Average total filings per day in April 2015 were 2,596, a 12 percent decrease from the 2,939 total daily filings in April 2014. States with the highest per capita filing rates (total filings per 1,000 population) in April 2015 were:
1. Tennessee (5.63)
2. Alabama (5.24)
3. Georgia (4.85)
4. Illinois (4.66)
5. Utah (4.31)
ABI has partnered with Epiq Systems, Inc. in order to provide the most current bankruptcy filing data for analysts, researchers and members of the news media. Epiq Systems is a leading provider of managed technology for the global legal profession. To view the full monthly statistic tables provided by Epiq Systems, be sure to visit ABI’s Newsroom.
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 12,000 attorneys, accountants, bankers, judges, professors, lenders, turnaround specialists and other bankruptcy professionals, providing a forum for the exchange of ideas and information. For additional information on ABI, visit www.abiworld.org. For additional conference information, visit http://www.abiworld.org/conferences.html.
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. For more information on Epiq Systems, Inc., please visit http://www.epiqsystems.com.