According to the American Bankruptcy Institute (ABI), citing data from Epiq Systems, total U.S. bankruptcy filings increased 3% in April 2018 over April of last year.
Bankruptcy filings totaled 69,736 in April 2018, up from the April 2017 total of 67,710. The 66,510 consumer bankruptcy filings in April 2018 were also up 3% over the April 2017 consumer total of 64,315. Total commercial filings fell 5% in April 2018, as the 3,226 filings decreased slightly from the 3,395 commercial filings registered in April 2017. Total commercial Chapter 11 filings showed the sharpest decline, dropping 32% to 391 in April 2018 from the April 2017 total of 575.
“As interest rate increases continue to push up borrowing costs for consumers and businesses, access to the financial shelter of bankruptcy is essential,” said ABI Executive Director Samuel J. Gerdano. “Two ABI efforts are underway to modernize the Bankruptcy Code to provide better access to struggling households and businesses seeking a financial fresh start.”
Congress is considering the recommendations of ABI’s Commission to Study the Reform of Chapter 11 for restructuring small and medium-sized enterprises. ABI’s Commission on Consumer Bankruptcy held its final open meeting at ABI’s Annual Spring Meeting in Washington, D.C., on April 20 and will release its recommendations later this year.
Total bankruptcy filings for the month of April decreased 8% when compared to the 76,031 total filings recorded the previous month. April’s commercial filing total represented a 12% decrease from the March 2018 commercial filing total of 3,682. Commercial Chapter 11 filings fell by nearly half, 49%, from the 773 filings in March 2018. Total noncommercial filings for April also represented an 8% decrease from the March 2018 noncommercial filing total of 72,349.
The average nationwide per capita bankruptcy filing rate in April was 2.49 (total filings per 1,000 per population), a slight increase from the 2.42 filing rate during the first three months of the year. Average total filings per day in April 2018 were 3,321, a 2% decrease from the 3,386 total daily filings in April 2017.
