July Commercial Chapter 11s Increase 52 Percent over Last Year, Total Filings Down 33 Percent
Alexandria, Va.— Total commercial chapter 11 filings in July 2020 increased 52 percent from the previous year, according to data provided by Epiq. Commercial chapter 11 filings totaled 643 in July 2020, expanding from the July 2019 total of 423. Conversely, total commercial filings decreased 17 percent in July 2020, as the 2,768 filings were down from the 3,314 commercial filings registered in July 2019. The 42,861 total bankruptcy filings in July 2020 were down 33 percent from the 64,345 total filings in July 2019. Total consumer filings decreased 34 percent in July 2020, as the 40,093 filings fell from the 61,031 consumer filings registered in July 2019.
“As the government considers renewing or bolstering lifelines to help stabilize the economy, the financial uncertainty due to the COVID-19 pandemic is weighing on families and businesses,” said ABI Executive Director Amy Quackenboss. “We anticipate filings increasing in the next few months as more households and companies seek the shelter of bankruptcy amid intensifying financial distress.”
Congress is currently considering another economic stimulus package as important aid provisions of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) have or will shortly expire. The weekly unemployment bonus of $600 established by the CARES Act ended on July 31, and the deadline for businesses to apply for a Paycheck Protection Program loan is August 8.
ABI’s COVID-19 Resources website is continually being updated 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, weekly filing statistics, recommended member analysis, industry sector news, charts and more. Also, ABI’s SBRA Resources webpage is routinely updated with information, statistics, analysis and events related to the Small Business Reorganization Act of 2019, which went into effect this year to make bankruptcy more accessible, efficient and cheaper for struggling small businesses.
July’s commercial chapter 11 filings represented a 6 percent increase from the 609 filings in June 2020. Total commercial filings were up 2 percent over the June 2020 commercial filing total of 2,713. Total bankruptcy filings in July represented a 1 percent increase over the 42,425 total filings recorded the previous month. Total noncommercial filings for July also represented a 1 percent increase from the June 2020 noncommercial filing total of 39,712.
The average nationwide per capita bankruptcy filing rate in July was 1.89 (total filings per 1,000 per population), a slight decrease from the filing rate of 1.92 during the first six months of 2020. Average total filings per day in July 2020 were 1,948, a 33 percent decrease from the 2,925 total daily filings in July 2019. States with the highest per capita filing rates (total filings per 1,000 population) in July 2020 were:
1. Alabama (4.31)
2. Tennessee (3.75)
3. Delaware (3.70)
4. Mississippi (3.35)
5. Georgia (3.12)
ABI has partnered with Epiq in order to provide the most current bankruptcy filing data for analysts, researchers and members of the news media. Epiq is a leading provider of managed technology for the global legal profession. To view the full monthly statistic tables provided by Epiq, 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 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. For additional conference information, visit http://www.abi.org/calendar-of-events.
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