otal Commercial Chapter 11 bankruptcy filings for the first calendar quarter of 2020 increased 14 percent from the same period last year, according to data provided by Epiq Systems, Inc. The 1,709 total commercial Chapter 11s from Jan. 1 through March 31, increased from the 1,500 total commercial Chapter 11s during the same period in 2019, the American Bankruptcy Institute reported.
Total overall commercial bankruptcy filings also increased in the first quarter of 2020, as the 9,817 during the first three months of 2020 marked a 4 percent increase over the 9,481 total commercial filings over the same period in 2019. However, total overall bankruptcy filings decreased 5 percent over the first three months of 2020 to 177,198 from the 187,325 filings during the same period of 2019. Consumer bankruptcy filings decreased 6 percent over the first three months of 2020 to 167,381 from the 177,844 consumer filings over the same period of 2019.
“The first-quarter filings represent a calm before the storm of the financial distress caused by the COVID-19 pandemic,” said ABI Executive Director Amy Quackenboss. “Consumers and businesses face growing financial challenges due to the pandemic, and bankruptcy provides a vital safe harbor from their mounting debts. We anticipate business filings to start rising this month and consumer filings to start to accelerate in early summer.”
The 530 total commercial Chapter 11 filings for the month of March 2020 increased 18 percent over the 449 commercial Chapter 11 filings in March 2019. Total commercial filings decreased 5 percent in March 2020 to 3,167 from the 3,317 business filings recorded in March 2019. Total overall bankruptcy filings for the month of March 2020 decreased 15 percent to 62,847 from the 73,522 total filings registered in March 2019. Consumer filings also decreased 15 percent in March 2020, to 59,680 from the March 2019 consumer filing total of 70,205.
The average nationwide per capita bankruptcy filing rate for the first three months of 2020 increased to 2.29 (total filings per 1,000 per population) from the 2.21 filing rate of the first two months of the year. States with the highest per capita filing rates (total filings per 1,000 population) for the first quarter of 2020 were:
- Alabama (5.47)
- Tennessee (5.05)
- Mississippi (4.45)
- Georgia (4.34)
- Arkansas (3.56)