Daily News: June 8, 2017

May Y/Y Commercial Bankruptcies Increase, Chapter 11 Filings Fall

According to the American Bankruptcy Institute, citing data for Epiq Systems, total U.S. bankruptcy filings increased 5% in May 2017 compared to the same period in 2016.

Bankruptcy filings totaled 69,668 in May 2017, up from the May 2016 total of 66,138. The 66,096 noncommercial bankruptcy filings in May 2017 were also up 5% from the May 2016 total of 62,726.

Total commercial filings also climbed 5% in May 2017, as the 3,572 filings increased slightly over the 3,412 commercial filings registered in May 2016. However, total commercial Chapter 11 filings decreased 8% to 563 in May 2017, down from the May 2016 total of 613.

“More consumers and businesses faced with mounting financial pressures are turning to the fresh start of bankruptcy,” said ABI Executive Director Samuel J. Gerdano. “Two ABI efforts are underway to modernize the Bankruptcy Code to meet the current needs of struggling households and business.”

Total bankruptcy filings for the month of May increased 3% when compared to the 67,723 total filings recorded the previous month. May’s commercial filing total represented a 7% increase from the April 2017 commercial filing total of 3,351. Commercial Chapter 11 filings decreased 2% when compared to the 575 filings in April 2017. Total noncommercial filings for May also represented a 3% increase from the April 2017 noncommercial filing total of 64,372.