Total U.S. bankruptcy filings in April 2020 decreased 46% from the previous year, according to data provided by Epiq Systems. Bankruptcy filings totaled 38,428 in April 2020, down from the April 2019 total of 71,303. The 36,150 consumer bankruptcy filings in April 2020 were down 47% from the April 2019 consumer total of 67,802. Total commercial filings decreased 35% in April 2020, as the 2,278 filings were down from the 3,501 commercial filings registered in April 2019. Conversely, there were 560 total commercial chapter 11 filings in April 2020, which was up 26% from the April 2019 total of 444.
“The extraordinary measures taken by Congress and the administration to assist individuals and businesses weather the initial economic shock caused by the pandemic have likely staved off bankruptcy filings to date,” Amy Quackenboss, executive director of the American Bankruptcy Institute, said. “As financial challenges continue to escalate amid this crisis, bankruptcy is sure to offer a financial safe harbor from the economic storm.”
ABI recently launched its new COVID-19 resources website for bankruptcy professionals and the public to access essential information and analysis regarding the financial distress being inflicted by the COVID-19 pandemic.
April’s total bankruptcy filings represented a 39% decrease when compared to the 62,866 total filings recorded the previous month. Total noncommercial filings for April also represented a 39% decrease from the March 2020 noncommercial filing total of 59,684. The commercial filing total represented a 28% decrease from the March 2020 commercial filing total of 3,182. Commercial chapter 11 filings increased 6% from the 530 filings in March 2020.
