Total bankruptcy filings in the United States decreased 16 percent in August 2014 over August of last year, according to data provided by Epiq Systems, Inc., the largest year-over-year drop thus far in 2014. Bankruptcy filings totaled 75,170 in August 2014, down from the August 2013 total of 88,962. Consumer filings declined 15 percent to 72,467 from the August 2013 consumer filing total of 85,125. Total commercial filings in August 2014 decreased to 2,703, representing a 30 percent decline from the 3,837 business filings recorded in August 2013. Total commercial chapter 11 filings dipped 41 percent to 357 filings in August 2014 from the 604 commercial chapter 11 filings registered in August 2013.
“The prolonged drop in bankruptcy filings reflects the financial landscape facing consumers and businesses,” said ABI Executive Director Samuel J. Gerdano. “Amid sustained low interest rates and high filing costs, total bankruptcies for the year will fall below 1 million for the first time since 2007.”
Total filings for August decreased 3 percent compared to the 77,500 total filings in July 2014. Total noncommercial filings for August also represented a 3 percent decrease from the July 2014 noncommercial filing total of 74,613. August’s commercial filing total represented a 6 percent decrease from the July 2014 commercial filing total of 2,887. August commercial chapter 11 filings were unchanged from the 357 filings in July 2014. Filings have fallen every month in 2014 over the previous year, as both credit card delinquencies and foreclosures have declined.
The average nationwide per capita bankruptcy-filing rate in August was 3.05 (total filings per 1,000 per population), a slight decrease from the 3.07 rate registered in the first seven months of the year. Average total filings per day in August 2014 were 2,425, a 16 percent decrease from the 2,870 total daily filings in August 2013. States with the highest per capita filing rates (total filings per 1,000 population) in August 2014 were:
- Tennessee (6.31)
- Georgia (5.31)
- Alabama (5.30)
- Utah (4.95)
- Illinois (4.85)
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.