Total U.S. commercial bankruptcy filings increased 21 percent in October 2016 over October of last year, according to data provided by Epiq Systems, Inc. Commercial filings totaled 3,023 in October 2016, up from the October 2015 total of 2,491. October is the twelfth consecutive month with a year-over-year increase in commercial filings. However, total commercial chapter 11 filings decreased in October 2016, as the 401 filings were 7 percent less than the 431 commercial chapter 11 filings registered in October 2015. The total bankruptcy filings of 63,042 in October 2016 represented a 10 percent decrease from the October 2015 total of 70,254. Consumer filings also decreased as the 60,019 filings in October 2016 were down 11 percent from the October 2015 consumer filing total of 67,763.
“Struggling businesses continue to turn to the financial shield of bankruptcy,” said ABI Executive Director Samuel J. Gerdano. “With financial distress continuing in energy and retail, 2016 business bankruptcies have already surpassed the total registered last year.”
Total filings for October decreased 2 percent compared to the 64,614 total filings in September 2016. Total noncommercial filings for October also represented a 2 percent decrease from the September 2016 noncommercial filing total of 61,503. October’s commercial filing total represented a 3 percent decrease from the September 2016 commercial filing total of 3,111. However, commercial chapter 11 filings were up 10 percent from the 364 filings recorded in September 2016.
The average nationwide per capita bankruptcy-filing rate in October was 2.53 (total filings per 1,000 population), a slight decline from the 2.54 rate for the first nine months of the year. Average total filings per day in October 2016 were 2,101, a 10 percent decrease from the 2,342 total daily filings in October 2015. States with the highest per capita filing rates (total filings per 1,000 population) in October 2016 were:
- Tennessee (5.66)
- Alabama (5.53)
- Georgia (4.81)
- Illinois (4.44)
- Utah (4.16)
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.
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 more than 12,000 attorneys, accountants, bankers, judges, professors, lenders, turnaround specialists and other bankruptcy professionals, providing a forum for the exchange of ideas and information.
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.