Year-over-year U.S. bankruptcy filings increased 7% across all chapters for the second consecutive month in September, according to data released today from Epiq‘s bankruptcy analytics platform.
There were 33,184 total filings registered in September 2022, up 7% from last September’s total of 30,922. Commercial Chapter 11 filings also rose, with 437 in September, a 76%increase compared to 249 filings in September 2021.
There were 1,994 commercial filings in September 2022, an increase of 16%compared to 1,721 in September 2021. The 31,190 individual filings in September also represented a 7% increase from the September 2021 total of 29,201. Subchapter V small business filings registered the largest percentage increase with 150 filings in September 2022, a 79% increase over the 84 filings in September 2021.
“While year-over-year comparisons indicate bankruptcies are trending upward, all chapter year-to-date new filings are nine percent lower than they were at the end of the third quarter last year,” Gregg Morin, vice president, business development and revenue at Epiq Bankruptcy, said. “While we anticipate economic pressures will continue to push new filing trends higher overall, we are still seeing mixed results month-over-month by individual chapters and debtor types.”
Although September saw significant year-over-year increases, 2022 year-to-date filings continue to run below 2021 levels. Total U.S. bankruptcy filings decreased 9% during the first nine months of the year, as the 284,773 filings dropped from 312,647 filings in 2021. The 268,901 total individual filings through the first three quarters of 2022 also represented a 9% decrease from the individual filing total of 295,166 through the first three quarters of 2021.
Commercial bankruptcy filings during the first nine months of the year dipped 9% to 15,872 from the 17,481 filings during the same period in 2021. Commercial Chapter 11 filings decreased 3% during the first nine months of 2022 from the same period a year ago, as the 2,831 filings declined from the 2,915 filings in 2021. Conversely, the 1,079 subchapter V filings during the period increased 8% over the 995 subchapter V filings during the first nine months of 2021.
“The weight of inflation, rising interest rates and concern over supply chain channels continue to have an economic impact on companies and families,” Amy Quackenboss, executive director at ABI, said. “Bankruptcy provides distressed households and businesses with the opportunity to rebuild their financial futures.”
