The 4,553 total commercial Chapter 11 bankruptcies filed during the first nine months of 2023 represented a 61% increase over the 2,837 filed during the same period in 2022, according to data provided by Epiq Bankruptcy.
Small business filings, captured as Subchapter V elections within Chapter 11, totaled 1,419 in the first nine months of 2023, marking a 41% increase from the 1,009 elections during the same period in 2022.
There were 18,680 overall commercial filings during the first nine months of 2023, which represented a 17% increase from the commercial filing total of 15,955 during the same period in 2022. Total bankruptcy filings reached 332,138 during the first nine months of 2023, which also was a 17% increase from the 284,839 total filings during the same period a year ago.
Total individual filings registered a 17% increase year-to-date to 313,458 filings in the first nine months of 2023, up from the 268,884 filings registered during the first nine months of 2022. The 131,236 individual Chapter 13 filings during the first nine months of 2023 represented a 19% increase over the 110,186 filings during the same period in 2022. Individual Chapter 7 filings increased 15% to 181,719 from the 158,178 filed in the first nine months of 2022.
“While still below pre-pandemic levels, the numbers of filings demonstrate the difficult challenges and growing debt loads that financially distressed families and businesses are facing in this current economic environment,” Amy Quackenboss, executive director of the American Bankruptcy Institute, said. “Struggling individuals and companies have an established lifeline through bankruptcy to help steady themselves amid rising interest rates, inflation and increased borrowing costs.”
Compared to September 2022, overall commercial filings increased 16% to 2,342 this September. September commercial Chapter 11 filings increased 29% to 573 from 455 on a year-over-year basis. Total Subchapter V elections within Chapter 11 increased 25% in September to 171 from 137 in September 2022.
Filings across all chapters increased in September compared to September 2022, with the 37,327 total bankruptcy filings during the month representing an increase of 12% from the 33,210 filed in September 2022. Total individual filings were up 13% to 35,138 from 31,188 compared with September 2022. The 19,793 individual Chapter 7 filings in September 2023 increased 14% over the 17,320 filings in September 2022. Individual Chapter 13 filings were up 11% in September to 15,285 from 13,819 last September.
“While year-over-year bankruptcy filings increased across the board during the first nine months, comparing 2023 second and third quarters provides a different perspective where shorter term indicators were mixed,” Gregg Morin, vice president of business development and revenue at Epiq Bankruptcy, said. “Total quarter three filings were up 2% over quarter two, all commercial chapters were down 1%, and all individual chapters were up 2% compared to the prior quarter-over-quarter period where all chapters increased in filing volume.”
