Total U.S. commercial bankruptcy filings decreased 23% in May 2018 compared to May of last year, according to data provided by Epiq Systems to the American Bankruptcy Institute.
Bankruptcy filings totaled 67,307 in May 2018, a drop from the May 2017 total of 69,732. The 63,982 consumer bankruptcy filings in May 2018 also decreased 3% compared to the May 2017 consumer total of 66,057. Total commercial filings fell 10 % in May 2018, as the 3,325 filings decreased from the 3,675 commercial filings registered in May 2017. Total commercial Chapter 11 filings showed the sharpest decline, dropping 23% to 447 in May 2018 from the May 2017 total of 579.
“Increased borrowing costs added to mounting debts have intensified the financial strain on struggling families and businesses,” said ABI Executive Director Samuel J. Gerdano. “Two ABI initiatives are aiming to modernize the Bankruptcy Code to provide remedies for 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 submitted comments to a Department of Education student loan regulatory evaluation and will release its recommendations next year.
Total noncommercial filings for May represented a 4% decrease from the April 2018 noncommercial filing total of 66,510. Conversely, May’s commercial filing total represented a 2% increase from the April 2018 commercial filing total of 3,250. Commercial Chapter 11 filings registered an increase of 14 over the 394 filings in April 2018.
The average nationwide per capita bankruptcy filing rate in May was 2.51 (total filings per 1,000 per population), a slight increase from the 2.47 filing rate during the first four months of the year. Average total filings per day in May 2018 were 3,059, a 4% decrease from the 3,170 total daily filings in May 2017.
