There were 634 commercial Chapter 11 filings registered in August, an increase of 54% from the 411 filings registered in August 2022, according to data provided by Epiq Bankruptcy.
Overall commercial filings increased 14% to 2,328 in August, up from the 2,045 commercial filings registered in August 2022. Small business filings, captured as Subchapter V elections within Chapter 11, increased 43% to 194 in August, up from 136 in August 2022.
There were 41,614 total bankruptcy filings in August, an 18% increase from the August 2022 total of 35,409. Individual bankruptcy filings totaled 39,286 in August, also registering an 18% increase from the August 2022 filing total of 33,364. There were 22,887 individual Vhapter 7 filings in August, a 21% increase from the 18,851 filings in August 2022, and there were 16,341 individual Chapter 13 filings in August, a 13% increase over the 14,457 filings from last August.
This August was the 13th straight month that total, individual and commercial bankruptcy filings registered monthly year-over-year increases.
“The continued year-over-year increases indicate the anticipated growth of bankruptcy filings is becoming a reality,” Gregg Morin, vice president of business development and revenue at Epiq Bankruptcy, said. “This emphasizes the critical role bankruptcy analytics plays in creating effective strategies and informed decisions when navigating an evolving market.”
August filing totals also registered increases across all filing categories when compared to July. Commercial Chapter 11 filings registered the largest gain from July, as the August total increased 76% from the July Chapter 11 filing total of 361. The August commercial filing total represented a 17% increase from the July commercial filing total of 1,990. Subchapter V elections within Chapter 11 increased 29% in August from the 150 filed in July. August’s total bankruptcy filings represented a 17% increase when compared to the 35,718 total filings recorded in July. Total individual filings for August also represented a 16% increase from the July filing total of 33,728. Likewise, in August, individual Chapter 7s increased 18% and Chapter 13s increased 15% from July.
“Elevated interest rates, rising prices due to inflation and resumption of student loan payments are just a few examples of the economic headwinds facing businesses and individuals,” Amy Quackenboss, executive director of the American Bankruptcy Institute, said. “Struggling families and companies looking to find their financial footing are increasingly turning to the established path of bankruptcy.”