Daily News: December 7, 2017

November Commercial Chapter 11 Filings Up 12% Over 2016

The American Bankruptcy Institute reported commercial Chapter 11 filings increased 12% in November 2017 over November of last year, according to data provided by Epiq Systems.

Commercial Chapter 11 filings totaled 433 in November 2017, up from the 386 commercial Chapter 11 fillings in November 2016. Total bankruptcy filings registered a slight increase as the 60,287 reported filings in November 2017 were up 2% from the November 2016 total of 59,349. Consumer bankruptcies also increased slightly in November 2017, as the 57,302 reported filings were 2% more than the 56,394 consumer filings registered in November 2016. Commercial bankruptcy filings totaled 2,985 in November 2017, a 1% increase from the 2,955 commercial filings in November 2016.

“Distressed consumers and businesses seeking the financial relief of bankruptcy are deterred by high filing costs,” said ABI Executive Director Samuel J. Gerdano. “Recommendations by ABI’s Chapter 11 Commission and the ongoing efforts of the Commission on Consumer Bankruptcy are focused on removing barriers to filing for struggling businesses and families.”

Commercial Chapter 11 filings for November increased 37% compared to the 316 Chapter 11s in October 2017. However, total bankruptcy filings for November decreased 7% from the previous month’s total of 64,601 filings. Noncommercial filings also fell 7% from the previous month’s noncommercial filing total of 61,591. November’s commercial filing total represented a 1% decrease from the October 2017 commercial filing total of 3,010.

The average nationwide per capita bankruptcy filing rate for the first 11 calendar months of 2017 (January 1 to November 30) fell slightly to 2.51 (total filings per 1,000 population) from the rate registered during the first 10 months of the year. The average daily filing total in November 2017 was 3,014, a 2% increase from the 2,967 total daily filings registered in November 2016. States with the highest per capita filing rates (total filings per 1,000 population) through the first 11 months of 2017 were:

1. Alabama (5.77)
2. Tennessee (5.60)
3. Georgia (4.72)
4. Mississippi (4.20)
5. Utah (4.06)

ABI is the largest multi-disciplinary, nonpartisan organization dedicated to research and education on matters related to insolvency.