Total April Bankruptcy Filings Increase 3 Percent over Last Year, Commercial Chapter 11s Fall 32 Percent
Alexandria, Va.— Total U.S. bankruptcy filings increased 3 percent in April 2018 over April of last year, according to data provided by Epiq Systems, Inc. Bankruptcy filings totaled 69,736 in April 2018, up from the April 2017 total of 67,710. The 66,510 consumer bankruptcy filings in April 2018 were also up 3 percent over the April 2017 consumer total of 64,315. Total commercial filings fell 5 percent in April 2018, as the 3,226 filings decreased slightly from the 3,395 commercial filings registered in April 2017. Total commercial chapter 11 filings showed the sharpest decline, dropping 32 percent to 391 in April 2018 from the April 2017 total of 575.
“As interest rate increases continue to push up borrowing costs for consumers and businesses, access to the financial shelter of bankruptcy is essential,” said ABI Executive Director Samuel J. Gerdano. “Two ABI efforts are underway to modernize the Bankruptcy Code to provide better access to struggling households and businesses seeking a financial fresh start.”
Congress is considering the recommendations of ABI's Commission to Study the Reform of Chapter 11 for restructuring small and medium-sized enterprises (SMEs). ABI’s Commission on Consumer Bankruptcy held its final open meeting at ABI’s Annual Spring Meeting in Washington, D.C., on April 20 and will release its recommendations later this year.
Total bankruptcy filings for the month of April decreased 8 percent when compared to the 76,031 total filings recorded the previous month. April’s commercial filing total represented a 12 percent decrease from the March 2018 commercial filing total of 3,682. Commercial chapter 11 filings fell by nearly half, 49 percent, from the 773 filings in March 2018. Total noncommercial filings for April also represented an 8 percent decrease from the March 2018 noncommercial filing total of 72,349.
The average nationwide per capita bankruptcy filing rate in April was 2.49 (total filings per 1,000 per population), a slight increase from the 2.42 filing rate during the first three months of the year. Average total filings per day in April 2018 were 3,321, a 2 percent decrease from the 3,386 total daily filings in April 2017. States with the highest per capita filing rates (total filings per 1,000 population) in April 2018 were:
1. Alabama (5.72)
2. Tennessee (5.49)
3. Georgia (4.59)
4. Mississippi (4.34)
5. Illinois (3.89)
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 nearly 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.