Summer ends amid growing bankruptcies
Epican Atlanta-based legal services industry intelligence provider, released its August 2022 bankruptcy filing statistics from its new Bankruptcy Analytics platform which revealed that filings are up 10% since the last year, which is 35,276 filings of all types, compared to 30,848 seen in July, 32,175 seen in June, and 32,508 seen in May.
According to Epiq, the total number of deposits also shows a 15% increase month-over-month from the July 2021 total of 30,854 deposits.
Epiq also noted that for the first time in months, all bankruptcy chapters saw a month-over-month increase.
Chapter 11 filings increased 81% to 466 (vs. 257 in July), Chapter 13 filings increased 15% to 14,981 filings (vs. 12,992), Chapter 7 filings increased 13% to 19 884 deposits (compared to 17,593).
Commercial deposits rose 6%, with 1,861 up from 1,753 last year.
“The new bankruptcy filings in August clearly show market momentum,” said Chris Kruse, SVP at Epiq Bankruptcy. “New Chapter 13 filings continue the recent trend of month-over-month growth, and for the first time since March, we are also seeing an increase in new Chapter 7 filings in August. We expect this trend to continue as the US emerges from the summer and heads into the fourth quarter. »
From a Chapter 11 business perspective, filings continue to rise. August Chapter 11 filings totaling 466 were up 81% from the 257 recorded in July 2022. Small business filings, captured as Sub-Chapter V elections in Chapter 11, were up 41 % to 140 in August 2022 from 99 in August 2021. Similarly, August Commercial Chapter 11 filings increased 91% from 212 filings in July 2022. Total commercial filings represented a 16% increase compared to July 2022’s total commercial filings of 1,607. Sub-Chapter V elections within Chapter 11 were up 42% from the 85 filed in July 2022.
“Financially distressed households and businesses are experiencing rising debt amid rising interest rates, inflation and supply chain issues,” said ABI’s chief executive. Amy Quackenboss. “Although still at historic lows, August’s increase in bankruptcy filings indicates that more families and businesses are looking for an avenue to ease growing financial hardship.”
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