Total commercial Chapter 11 filings in July 2020 increased 52% from the previous year, according to data provided by Epiq. Commercial Chapter 11 filings totaled 643 in July 2020, expanding from the July 2019 total of 423. Conversely, total commercial filings decreased 17% in July 2020, as the 2,768 filings were down from the 3,314 commercial filings registered in July 2019. The 42,861 total bankruptcy filings in July 2020 were down 33% from the 64,345 total filings in July 2019. Total consumer filings decreased 34% in July 2020, as the 40,093 filings fell from the 61,031 consumer filings registered in July 2019.

“As the government considers renewing or bolstering lifelines to help stabilize the economy, the financial uncertainty due to the COVID-19 pandemic is weighing on families and businesses,” Amy Quackenboss, executive director of the American Bankruptcy Institute, said. “We anticipate filings increasing in the next few months as more households and companies seek the shelter of bankruptcy amid intensifying financial distress.”

Congress is currently considering another economic stimulus package as important aid provisions of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) have or will shortly expire. The weekly unemployment bonus of $600 established by the CARES Act ended on July 31, and the deadline for businesses to apply for a Paycheck Protection Program loan is Aug. 8.

July’s commercial Chapter 11 filings represented a 6% increase from the 609 filings in June 2020. Total commercial filings were up 2% from the June 2020 commercial filing total of 2,713. Total bankruptcy filings in July represented a 1% increase compared with the 42,425 total filings recorded the previous month. Total noncommercial filings for July also represented a 1% increase from the June 2020 noncommercial filing total of 39,712.

The average nationwide per capita bankruptcy filing rate in July was 1.89 (total filings per 1,000 per population), a slight decrease from the filing rate of 1.92 during the first six months of 2020. Average total filings per day in July 2020 were 1,948, a 33% decrease from the 2,925 total daily filings in July 2019. States with the highest per capita filing rates (total filings per 1,000 population) in July 2020 were Alabama (4.31), Tennessee (3.75), Delaware (3.70), Mississippi (3.35) and Georgia (3.12).