Commercial Bankruptcy Filings Climb 29 Percent for the First Half of 2016, Total Filings Decrease 6 Percent
Alexandria, Va.— Total commercial filings during the first six months of the year (Jan. 1-June 30) increased 29 percent to 19,470 over the 15,071 total commercial filings during the same period in 2015, according to data provided by Epiq Systems, Inc. Commercial chapter 11 filings also climbed during the first half of 2016 as the 3,220 filings represented a 25 percent increase over the 2,575 commercial chapter 11 filings during the first six months of 2015. Total bankruptcy filings, however, fell to 398,495 during the first six months of 2016, representing a 6 percent decrease from the 422,914 total filings during the same period a year ago. The 379,025 total noncommercial filings for the first half of 2016 represented a 7 percent drop from the noncommercial filing total of 407,843 for the first half of 2015.
“As economic challenges continue to weigh on the balance sheets of struggling companies, especially those in energy and retail, more businesses are seeking the financial fresh start of bankruptcy,” said ABI Executive Director Samuel J. Gerdano. “Commercial bankruptcy filings for 2016 will likely total close to 40,000.”
Total commercial filings for the month of June 2016 were 3,294, representing a 35 percent increase from the 2,442 filings in June 2015. Commercial chapter 11 filings registered a 36 percent increase, as the 366 commercial chapter 11 filings in June 2015 climbed to 499 in June 2016. Total bankruptcy filings, however, decreased to 66,284 for the month of June, a 5 percent decline from the 69,772 filings in June 2015. The 62,990 total noncommercial filings for June represented a 7 percent drop from the June 2015 noncommercial filing total of 67,330.
The average nationwide per capita bankruptcy filing rate for the first six calendar months of 2016 (Jan. 1-June 30) remained at 2.56 (total filings per 1,000 per population), and the average total filings per day in June 2016 were 2,210, a 5 percent decrease from the 2,326 total daily filings in June 2015. States with the highest per capita filing rate (total filings per 1,000 population) through the first six months of 2016 were:
1. Tennessee (5.63)
2. Alabama (5.37)
3. Georgia (4.65)
4. Illinois (4.29)
5. Utah (4.15)
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.
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.abi.org. For additional conference information, visit http://www.abi.org/calendar-of-events.
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.