Press Releases

Alexandria, Va.— Total U.S. bankruptcy filings in April 2022 decreased 21 percent from the previous year, according to data provided by Epiq Bankruptcy, the leading provider of U.S. bankruptcy filing data. Bankruptcy filings totaled 32,508 in April 2022, down from the April 2021 total of 40,931. Noncommercial bankruptcy filings totaled 30,747 in April 2022, also registering a 21 percent decrease from the April 2021 noncommercial total of 38,826. Commercial filings decreased 16 percent in April 2022, as the 1,761 filings were down from the 2,105 commercial filings registered in April 2021. There were 249 commercial chapter 11 filings registered in April 2022, a decline of 15 percent from the 290 filings in April 2021. Small business filings, captured as subchapter V elections within chapter 11, decreased 26 percent to 83 in April 2022 from 112 in April 2021.

“New bankruptcy filing volumes continue to decline as the country emerges from the global pandemic,” says Chris Kruse, senior vice president of Epiq Bankruptcy Technology. “The seasonality we see in March each year also occurred in 2022, and the April decline was expected.”

April’s total bankruptcy filings represented a 10 percent decrease when compared to the 36,059 total filings recorded the previous month. Total noncommercial filings for April also represented a 10 percent decrease from the March 2022 noncommercial filing total of 34,234. The commercial filing total represented a 4 percent decrease from the March 2022 commercial filing total of 1,825. Commercial chapter 11 filings decreased 15 percent from the 292 filings in March 2022. Subchapter V elections within chapter 11 declined 40 percent from the 138 filed in March 2022.

“Legislation that passed recently in the Senate and is currently being considered in the House would expand the debt-eligibility limits for small businesses and individuals looking to reorganize their finances,” said ABI Executive Director Amy Quackenboss. “ABI appreciates the work by Congress to create greater access and a more efficient process for small businesses and families to achieve a financial fresh start.”

The decline of subchapter V elections reflects the return of the debt-eligibility limit to the original $2,725,625 threshold from the expanded amount of $7.5 million first established under the CARES Act of 2020. Legislation was passed in the Senate to restore the eligibility limit back to $7.5 million and cover any subchapter V cases that were pending at the time of the March 27 sunset. Consistent with the recommendations of ABI’s Commission on Consumer Bankruptcy, the substitute also continues to push for the debt limit for individual chapter 13 filings to be increased to $2.75 million and remove the distinction between secured and unsecured debt for that calculation. Both of the expanded eligibility limits for small business subchapter Vs and consumer chapter 13s would sunset after two years.

ABI has partnered with Epiq Bankruptcy to provide the most current bankruptcy filing data for analysts, researchers, and members of the news media. Epiq Bankruptcy is the leading provider of data, technology, and services for companies operating in the business of bankruptcy. Its new Bankruptcy Analytics subscription service provides on-demand access to the industry’s most dynamic bankruptcy data, updated daily. Learn more at https://bankruptcy.epiqglobal.com/analytics.

For further information about the statistics or additional requests, please contact ABI Public Affairs Officer John Hartgen at 703-894-5935 or [email protected].

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Epiq Bankruptcy is a division of Epiq, a global technology-enabled services leader to the legal services industry and corporations that 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 https://www.epiqglobal.com.  

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 10,000 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.

Alexandria, Va. — The American Bankruptcy Institute (ABI) applauds the Senate’s swift passage yesterday of the amended S.3823, the “Bankruptcy Threshold Adjustment and Technical Corrections Act.” Sen. Charles Grassley (R-Iowa) had recently introduced the legislative substitute to raise the debt limit back to $7.5 million for small businesses electing to file for bankruptcy under subchapter V of chapter 11. Consistent with the recommendations of ABI’s Commission on Consumer Bankruptcy, the substitute also raises the debt limit for individual chapter 13 filings to $2.75 million and removes the distinction between secured and unsecured debt for that calculation. All provisions of the legislation will sunset two years after enactment. The legislation now moves to the House of Representatives for consideration.

Due to priorities and procedural issues, the Senate was not able to address S.3823 prior to the March 27 sunset of the $7.5 million eligibility limit for small businesses electing to file for bankruptcy under subchapter V of chapter 11. The debt-eligibility limit returned to the original $2,725,625 threshold on March 28 that had been established under the “Small Business Reorganization Act of 2019” (SBRA). In addition to providing a two-year extension of the subchapter V debt limit back to $7.5 million, the substitute bill also covers any subchapter V cases that were pending at the time of the March 27 sunset.

“ABI appreciates the swift passage by the Senate and the continued work of Senator Grassley to provide greater access for struggling small businesses and families to achieve a financial fresh start,” said ABI Executive Director Amy Quackenboss. “Providing an extension of the debt limit for subchapter V at $7.5 million and increasing the eligibility of individuals to access relief under chapter 13 provides a cost-effective and efficient path for more consumers and businesses to reorganize their finances.”

As a direct result of the work of ABI’s Commission to Study the Reform of Chapter 11, the Small Business Reorganization Act of 2019 (SBRA) became effective on February 19, 2020, to provide Main Street business debtors with a more streamlined path for restructuring their debts. Since then, more than 3,000 debtors have elected to file under subchapter V of chapter 11. In response to the economic distress caused by the COVID-19 pandemic, the “Coronavirus Aid, Relief, and Economic Security Act” (CARES Act; P.L. 116-136) was enacted on March 27, 2020, which increased the debt-eligibility limit from $2,725,625 to $7,500,000 for small businesses looking to file under the SBRA’s subchapter V. Congress extended the limit last year with the enactment of the “COVID-19 Bankruptcy Relief Extension Act of 2021,” but the threshold returned to $2,725,625 on March 27.

Sen. Grassley (R-Iowa) originally introduced the bipartisan S.3823 on March 14, aiming to make the subchapter V debt limit permanent at $7.5 million and index it to inflation, increase the chapter 13 debt limit to $2.75 million and remove the distinction between secured and unsecured debt in that calculation, make Small Business Reorganization Act technical amendments, and make Bankruptcy Administration Improvement Act technical amendments. Senate Judiciary Chair Richard Durbin (D-Ill.) and Sens. Sheldon Whitehouse (D-R.I.) and John Cornyn (R-Texas) co-sponsored both the legislation and the substitute.

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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 10,000 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.abiworld.org.

Alexandria, Va. — ABI Executive Director Amy Quackenboss and several ABI members will be inducted as Fellows in the 33rd Class of the American College of Bankruptcy (ACB) at its Annual Meeting in April 2022 in Denver. Thirty-seven new Fellows are being honored and recognized for their professional excellence and exceptional contributions to bankruptcy and insolvency practice.

Quackenboss joined the ABI staff as Deputy Executive Director in November 2010 and has led the organization as its Executive Director since Jan. 1, 2020. Prior to joining the ABI staff, Quackenboss practiced bankruptcy and restructuring law at Hunton Andrews Kurth (Atlanta).

Nominees are invited to join by virtue of their sustained record of achievement. Candidates are selected by the College’s Board of Regents based on the recommendations of Circuit Admissions Councils in each federal judicial circuit and Nominating Committees for Judicial and International Fellows. College Fellows include judges, lawyers, international fellows, accountants, corporate turnaround specialists, government officials and other professionals who are experts in the field of bankruptcy and insolvency. Criteria for selection as a Fellow of the College include: the highest standards of professionalism, ethics, character, integrity, professional expertise and leadership contributing to the enhancement of bankruptcy and insolvency law and practice; sustained evidence of scholarship, teaching, lecturing or writing on bankruptcy or insolvency; community service; and commitment to elevating knowledge and understanding of the profession and public respect for the practice.

The following ABI members were also inducted as Fellows into the American College of Bankruptcy during ceremonies in April 2022: Todd Almassian (Keller & Almassian, PLC; Grand Rapids, Mich.), Mark T. Benedict (Husch Blackwell LLP; Kansas City, Mo.), Monica L. Clark (Dorsey & Whitney LLP; Minneapolis), Daniel J. DeFranceschi (Richards, Layton & Finger, PA; Wilmington, Del.), Hon. John T. Gregg (U.S. Bankruptcy Court (W.D. Mich.); Grand Rapids), Christopher L. Hawkins (Bradley Arant Boult Cummings LLP; Birmingham, Ala.), Thomas S. Hemmendinger (Brennan Recupero Cascione Scungio & McAllister LLP; Providence, R.I.), Brian S. Hermann (Paul, Weiss, Rifkind, Warton & Garrison LLP; New York), Paul G. Jennings (Bass Berry Simms PLC; Nashville, Tenn.), Paul J. Keenan (Baker & McKenzie LLP; Miami), Hon. Enrique S. Lamoutte (U.S. Bankruptcy Court (D. P.R.); San Juan), Prof. Adam J. Levitin (Georgetown Law; Washington, D.C.), Vincent J. Marriott (Ballard Spahr LLP; Philadelphia), Prof. Troy A. McKenzie (New York University School of Law; New York), Mohsin Y. Meghji (M-III Partners, LLC; New York), Jay H. Ong (Munsch, Hardt, Kopf & Harr, PC; Austin, Texas), David R. Payne (D.R. Payne & Associates, Inc.; Oklahoma City), Melissa M. Root (Jenner & Block LLP; Chicago), David V. Rush (FTI Consulting, Inc.; Houston), Sheila R. Schwager (Hawley Troxell Ennis & Hawley LLP; Boise, Idaho), Paul N. Shields (Berkeley Research Group; Salt Lake City), Kristina M. Stanger (Nyemaster Goode PC; Des Moines, Iowa), Hon. Kathy A. Surratt-States (U.S. Bankruptcy Court (E.D. Mo.); St. Louis), Tara Twomey (National Consumer Law Center; Carmel, Calif.), David A. Wender (Alston & Bird LLP; Atlanta) and Mark S. Zuckerberg (Law Office of Mark S. Zuckerberg; Indianapolis).

The American College of Bankruptcy is an honorary public service association of U.S. and international insolvency professionals who are invited to join as Fellows based on a proven record of the highest standards of expertise, leadership, integrity, professionalism, scholarship, and service to the bankruptcy and insolvency practice and to their communities. The College facilitates the effective domestic and cross-border application of bankruptcy and insolvency laws and the administration of justice in the courts through, among other activities, conducting professional educational programs, sponsoring the publication of scholarly reports, and maintaining the National Bankruptcy Archives. The College also funds projects that improve the quality of bankruptcy law and practice, as well as access to justice, in particular through grants by its affiliated Foundation to pro bono legal service programs. The Foundation is believed to be the single largest financial supporter of pro bono bankruptcy services in the U.S., contributing over $3 million since 2012. In all of its work, the College is dedicated to enhancing professionalism, scholarship, diversity, equity and inclusion in and service to bankruptcy and insolvency law and practice.

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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 10,000 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.

March 18, 2022, Alexandria, Va. — The American Bankruptcy Institute (ABI) applauds the introduction of S. 3823, the “Bankruptcy Threshold Adjustment and Technical Corrections Act,” which would permanently set the debt limit at $7.5 million for small businesses electing to file for bankruptcy under subchapter V of chapter 11. Consistent with the recommendations of ABI’s Commission on Consumer Bankruptcy, the bill also would raise the debt limit for individual chapter 13 filings to $2.75 million and remove the distinction between secured and unsecured debt for that calculation. “There is no doubt that the effects of the COVID-19 pandemic and its aftermath continue to put a significant strain on individuals and small businesses,” said ABI Executive Director Amy Quackenboss. “By permanently setting the debt limit for subchapter V at $7.5 million and increasing the eligibility of individuals to access relief under chapter 13, the ‘Bankruptcy Threshold Adjustment and Technical Corrections Act’ provides a greater number of struggling small businesses and families with an efficient path to reorganizing their finances.”

As a direct result of the work of ABI’s Commission to Study the Reform of Chapter 11, the Small Business Reorganization Act of 2019 (SBRA) became effective on February 19, 2020, to provide Main Street business debtors with a more streamlined path for restructuring their debts. Since then, more than 3,000 debtors have elected to file under subchapter V of chapter 11. In response to the economic distress caused by the COVID-19 coronavirus pandemic, the “Coronavirus Aid, Relief, and Economic Security Act” (CARES Act; P.L. 116-136) was enacted on March 27, 2020, increasing the debt eligibility limit for small businesses looking to file under the SBRA’s subchapter V from $2,725,625 to $7,500,000. Congress extended the limit last year with the enactment of the “COVID-19 Bankruptcy Relief Extension Act of 2021,” but the threshold is set return to $2,725,625 on March 27, 2022, without further congressional action.

Sen. Charles Grassley (R-Iowa) introduced the bipartisan S. 3823 on March 14, aiming to make the subchapter V debt limit permanent at $7.5 million and index it to inflation, increase the chapter 13 debt limit to $2.75 million, remove the distinction between secured and unsecured debt, make Small Business Reorganization Act technical amendments, and make Bankruptcy Administration Improvement Act technical amendments. The legislation is co-sponsored by Senate Judiciary Chair Richard Durbin (D-Ill.) and Sens. Sheldon Whitehouse (D-R.I.) and John Cornyn (R-Texas).

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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 10,000 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.abiworld.org.