Total U.S. commercial bankruptcy filings increased 10 percent in July 2016 over July of last year, according to data provided by Epiq Systems, Inc. Commercial filings totaled 2,922 in July 2016, up from the July 2015 total of 2,661. July is the ninth consecutive month with a year-over-year increase in commercial filings. However, total commercial chapter 11 filings decreased in July 2016, as the 355 filings were 45 percent less than the 645 commercial chapter 11 filings registered in July 2015. Total bankruptcy filings also declined 15 percent to 61,308 in July 2016, down from the July 2015 total of 71,875. Consumer filings were 58,386, dropping 16 percent from the July 2015 consumer filing total of 69,214.
“Businesses facing financial headwinds continue to turn to the financial fresh start of bankruptcy,” said ABI Executive Director Samuel J. Gerdano. “Driven by distress in the energy and retail sectors, commercial bankruptcy filings for 2016 will likely total close to 40,000.”
Total bankruptcy filings for the month of July decreased 8 percent when compared to the 66,303 total filings recorded the previous month. July’s commercial filing total represented a 12 percent decrease from the June 2016 commercial filing total of 3,311. Commercial chapter 11 filings decreased 29 percent when compared to the 500 filings in June 2016. Total noncommercial filings for July also represented a 7 percent decrease from the June 2016 noncommercial filing total of 62,992.
The average nationwide per capita bankruptcy-filing rate in July was 2.53 (total filings per 1,000 per population), a slight decrease from the filing rate of 2.56 during the first six months of the year. Average total filings per day in July 2016 were 1,978, a 15 percent decrease from the 2,319 total daily filings in July 2015. States with the highest per capita filing rates (total filings per 1,000 population) in July 2016 were:
- Tennessee (5.56)
- Alabama (5.34)
- Georgia (4.62)
- Illinois (4.22)
- Utah (4.10)
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.