Total Bankruptcy Filing Drop 41 Percent in October from Last Year, Commercial Chapter 11 Filings Increase 4 Percent
Alexandria, Va.— Total U.S. bankruptcy filings in October decreased 41 percent from last year, according to data provided by Epiq Systems, Inc. The 40,209 total filings in October 2020 were down from the 67,858 filings registered in October 2019. The 37,688 consumer filings in October 2020 also represented a 41 percent decrease from last year’s consumer total of 64,279. Overall commercial filings in October 2020 totaled 2,521 filings, down 30 percent from the 3,579 filings in October 2019. Commercial chapter 11 filings increased slightly as the 550 filings in October 2020 were up 4 percent over the 530 recorded in October 2019. Throughout 2020, more than one-half of the commercial chapter 11 filings have been related filings by subsidiaries within a corporate group.
"Families and businesses are faced with increasing financial challenges due to the COVID-19 pandemic and growing debt loads," said ABI Executive Director Amy Quackenboss. “The expiration of government relief programs, high unemployment and a difficult financial outlook for many sectors will likely lead to filings increasing in early 2021.”
Total bankruptcy filings in October 2020 represented a 1 percent increase from the 39,713 total filings in September. The 37,688 consumer filings in October represented a 2 percent increase from September’s consumer total of 37,030. October 2020 business filings decreased 6 percent to 2,521 from September’s business total of 2,683. The 550 commercial chapter 11 filings recorded in October 2020 represented a 27 percent decrease from the 749 commercial chapter 11 filings in September.
The average nationwide per capita bankruptcy filing rate in October was 1.78 (total filings per 1,000 per population), a slight decrease from the filing rate of 1.81 during the first nine months of 2020. Average total filings per day in October 2020 were 1,915, a decrease of 38 percent from the 3,084 total daily filings in October 2019. States with the highest per capita filing rates (total filings per 1,000 population) in October 2020 were:
1. Alabama (4.00)
2. Delaware (3.71)
3. Tennessee (3.54)
4. Mississippi (3.01)
5. Nevada (2.99)
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 statistical tables provided by Epiq, be sure to visit ABI’s Newsroom.
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.
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.
Epiq, a global leader in the legal services industry, takes on large-scale, increasingly complex tasks for corporate counsel, law firms, and business professionals with efficiency, clarity, and confidence. Clients rely on Epiq to streamline the administration of business operations, class action and mass tort, court reporting, eDiscovery, regulatory, compliance, restructuring, and bankruptcy matters. Epiq subject-matter experts and technologies create efficiency through expertise and deliver confidence to high-performing clients around the world. Learn more at www.epiqglobal.com.