Total commercial bankruptcy filings fell 10 percent in May 2018, as the 3,325 filings decreased from the 3,675 commercial filings registered in May 2017, according to data provided by Epiq Systems, Inc. Total commercial Chapter 11 filings showed the sharpest decline, dropping 23 percent to 447 in May 2018 from the May 2017 total of 579.
Total U.S. bankruptcy filings decreased 4 percent in May 2018 over May 2017. Bankruptcy filings totaled 67,307 in May 2018, a drop from the May 2017 total of 69,732. The 63,982 consumer bankruptcy filings in May 2018 also decreased 3 percent over the May 2017 consumer total of 66,057.
“Increased borrowing costs added to mounting debts have intensified the financial strain on struggling families and businesses,” said Samuel J. Gerdano, American Bankruptcy Institute Executive Director. “Two ABI initiatives are aiming to modernize the Bankruptcy Code to provide remedies for struggling households and businesses seeking a financial fresh start.”
Congress is considering the recommendations of ABI's Commission to Study the Reform of Chapter 11 for restructuring small and medium-sized enterprises (SMEs). ABI’s Commission on Consumer Bankruptcy, which recently submitted comments to a Department of Education regulatory evaluation of student loans in bankruptcy, will release its recommendations next year.
Total bankruptcy filings for the month of May decreased 4 percent when compared to the 69,760 total filings recorded in April. Total noncommercial filings for May also represented a 4 percent decrease from the April 2018 noncommercial filing total of 66,510. Conversely, May’s commercial filing total represented a 2 percent increase from the April 2018 commercial filing total of 3,250. Commercial Chapter 11 filings registered an increase of 14 over the 394 filings in April 2018.
The average nationwide per capita bankruptcy filing rate in May was 2.51 (total filings per 1,000 per population), a slight increase from the 2.47 filing rate during the first four months of the year. Average total filings per day in May 2018 were 3,059, a 4 percent decrease from the 3,170 total daily filings in May 2017. States with the highest per capita filing rates (total filings per 1,000 population) in May 2018 were:
- Alabama (5.67)
- Tennessee (5.48)
- Georgia (4.49)
- Mississippi (4.36)
- Illinois (3.87)
ABI has partnered with Epiq Systems, Inc., to provide the most current bankruptcy filing data for analysts, researchers and members of the news media.