February Commercial Chapter 11 Bankruptcy Filings Drop 20 Percent Ahead of Potential Financial Impact from Coronavirus COVID-19 Pandemic
Alexandria, Va. — Total commercial chapter 11 filings in February 2020 decreased 20 percent over the same period last year, according to data provided by Epiq Systems, Inc. The 547 commercial chapter 11 filings in February 2020 were down from the 685 commercial chapter 11 filings in February 2019. Total commercial filings were 3,084 in February 2020, representing a 4 percent decrease from the 3,203 business filings recorded in February 2019. Total bankruptcy filings upticked 0.1 percent to 56,182 in February 2020 from the 56,144 filed in February 2019. Consumer filings increased 0.3 percent in February 2020 to 53,098 from the February 2019 consumer filing total of 52,941.
“As businesses close and the supply chain endures disruptions due to the COVID-19 coronavirus, bankruptcy provides distressed businesses and consumers the financial shelter they need in these challenging times,” said ABI Executive Director Amy Quackenboss. “While the statistics might not show the immediate effects, we expect filings to increase as a result of the financial impact of the COVID-19 pandemic.”
ABI hosted a webinar on March 10 featuring a panel of experts that shed light on the impact, and likely reaction, from various sectors of the economy, as well as suggestions on what may be around the corner in the world economy. Click here to watch a replay of the webinar.
ABI members Thomas J. Salerno of Stinson, LLP (Phoenix) and G. Neil Elsey of Avion Holdings, LLC (Scottsdale, Ariz.) also wrote a column on the coronavirus’s impact on capital markets, supply-chain disruption, hospitality and transportation. Click here to read the column.
The February 2020 commercial chapter 11 filing total of 547 represented a 13 percent decrease over the previous month’s commercial filing total of 630. February 2020’s 3,084 commercial filings also dropped 13 percent over the 3,535 filings recorded in January 2020. Total bankruptcy filings fell 3 percent in February 2020 from January’s total of 58,150 filings. Total noncommercial filings also decreased 3 percent from the previous month, from 54,615 filings in January 2020 to 53,098 filings in February 2020.
The average nationwide per capita bankruptcy filing rate in February 2020 was 2.21 (total filings per 1,000 per population), a slight decrease from January 2020’s rate of 2.25. Average total filings per day in February 2020 were 2,957, a slight increase from the 2,955 total daily filings recorded in February 2019. States with the highest per capita filing rates (total filings per 1,000 population) in February 2020 were:
1. Alabama (5.33)
2. Tennessee (5.00)
3. Georgia (4.49)
4. Mississippi (4.16)
5. Arkansas (3.50)
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.
For further information about the statistics or additional requests, please contact ABI Public Affairs Officer John Hartgen at 703-894-5935 or [email protected].
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 nearly 11,000 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.
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.