Commercial chapter 11 filings increased 75% in October 2018 over October of last year, according to data provided by Epiq Systems on behalf of the American Bankruptcy Institute.
The 554 commercial chapter 11 filings registered in October 2018 were up from October 2017’s commercial chapter 11 filing total of 316. Commercial bankruptcy filings totaled 3,371 in October 2018, an 11% increase from the 3,041 commercial filings in October 2017. The 67,546 total U.S. bankruptcy filings in October 2018 registered a 5% increase over the October 2017 total of 64,616. Consumer bankruptcies also increased in October 2018, as the 64,175 filings were 4% more than the 61,575 consumer filings registered in October 2017.
“Bankruptcy provides a shield for distressed consumers and businesses confronted with rising interest rates and global economic challenges,” said ABI Executive Director Samuel J. Gerdano. “The recommendations of ABI’s Chapter 11 Commission and the ongoing efforts of the Commission on Consumer Bankruptcy aim to improve the system for struggling businesses and families seeking a fresh start through bankruptcy.”
Commercial chapter 11 filings in October 2018 represented a 79% increase over the 309 filings recorded in September 2018. October’s commercial filing total represented a 20% increase from the September 2018 commercial filing total of 2,889. Total filings for October increased 17% compared to the 57,596 total filings in September 2018. Total noncommercial filings for October also represented a 17% increase from the September 2018 noncommercial filing total of 54,788.
The average nationwide per capita bankruptcy filing rate (total filings per 1,000 population) was 2.49 for the first 10 calendar months of 2018 (Jan. 1-Oct. 31), a slight increase over the 2.48 rate registered during the first nine months of the year. The average daily filing total in October 2018 was 3,070, a slight decrease from the 3,077 total daily filings registered in October 2017. States with the highest per capita filing rates (total filings per 1,000 population) through the first 10 months of 2018 were:
- Alabama (5.74)
- Tennessee (5.54)
- Georgia (4.61)
- Mississippi (4.34)
- Illinois (3.77)