FREE MEMBERSHIP Includes » ABL Advisor eNews + iData Blasts | JOIN NOW ABLAdvisor Gray ABLAdvisor Blue
Skip Navigation LinksHome / News / Read News


June Commercial Chapter 11 Filings Rise 29% Y/Y

July 07, 2022, 07:20 AM
Filed Under: Bankruptcy

The 447 commercial chapter 11 filings in June represented a 29 percent increase from the 347 filings in June 2021, according to data provided by Epiq Bankruptcy, the leading provider of U.S. bankruptcy filing data. Overall commercial filings decreased 7 percent in June 2022, as the 1,864 filings were down from the 1,999 commercial filings registered in June 2021. Small business filings, captured as subchapter V elections within chapter 11, experienced an 8 percent decrease from 106 in June 2021 to 98 in June 2022. Total bankruptcy filings were 32,175 in June 2022, a 6 percent decline from the June 2021 total of 34,291. Noncommercial bankruptcy filings totaled 30,311 in June 2022, also registering a 6 percent decrease from the June 2021 noncommercial total of 32,292. 

Total bankruptcy filings were 185,303 during the first six months of 2022, a 15 percent decrease from the 217,047 total filings during the same period a year ago. Total consumer filings also registered a 15 percent decrease, as the 175,112 filings during the first half of 2022 were down from the 204,679 filings during the first six months of 2021. The 10,191 total commercial filings for the first half of 2022 represented a 17 percent decline from the commercial filing total of 12,278 for the first half of 2021. The 1,765 total commercial chapter 11 filings during the first six months of the year (Jan. 1-June 30) were an 18 percent decrease from the 2,155 total filings during the same period in 2021, according to data provided by Epiq Bankruptcy Analytics.  

“The year-over-year filing counts continue to show declines, but month-over-month we see growth in chapter 13 filings that when coupled with the growth in corporate chapter 11s, tell a different story,” says Chris Kruse, senior vice president at Epiq. “Turbulence in the market including inflation concerns, labor shortages in key industries, and a downward shift in housing prices all point toward increases in the months ahead.”  

“Tightening credit markets amid increasing interest rates, elevated prices due to inflation and global supply concerns are presenting financially distressed families and businesses with more economic dilemmas,” said ABI Executive Director Amy Quackenboss. “Bankruptcy provides a shield to the mounting economic challenges being experienced by financially struggling consumers and companies.” 

Total filings in the first half of 2022 point to a pace for the full year that could be the lowest since the 348,521 bankruptcies recorded by the Administrative Office of the U.S. Courts in calendar year 1984. Will total, business and consumer filings remain on this pace for the second half?  

In partnership with Epiq, an abiLIVE webinar on July 12 will feature experts looking at filing trends through June 30 and providing their thoughts on what could happen with bankruptcies moving forward. Speakers on the program include ABI President Hon. Kevin Carey (ret.) of Hogan Lovells (Philadelphia), Deirdre O’Connor of Epiq (New York) and ABI's Ed Flynn (Alexandria, Va.). Christopher Kruse of Epiq (San Francisco) will serve as moderator for the program. Click here for your complimentary registration. 

President Joe Biden on June 21 signed into law the “Bankruptcy Threshold Adjustment and Technical Corrections Act” to provide greater access to struggling small businesses and families looking to achieve a financial fresh start. The bill was introduced by Sen. Charles Grassley (R-Iowa) to raise the debt limit back to $7.5 million for small businesses electing to file for bankruptcy under subchapter V of chapter 11. Consistent with the recommendations of ABI’s Commission on Consumer Bankruptcy, the measure also raises the debt limit for individual chapter 13 filings to $2.75 million and removes the distinction between secured and unsecured debt for that calculation. The bill passed the Senate on April 7 and the House of Representatives on June 7. All provisions of the law will sunset two years from enactment, on June 21, 2024.




Week's News

Comments From Our Members

You must be an ABL Advisor member to post comments. Login or Join Now.