Total Commercial Chapter 11 filings climbed in May 2016, as the 611 filings were 22% more than the 502 commercial Chapter 11 filings registered in May 2015.
Total U.S. commercial bankruptcy filings increased 32% in May 2016 over April of last year, according to data provided by Epiq Systems. Commercial filings totaled 3,358 in May 2016, up from 2,550 in May 2015. May is the seventh consecutive month with a year-over-year increase in commercial filings. However, total bankruptcy filings decreased 5% to 66,094 in May 2016, down from the May 2015 total of 69,338. Consumer filings were 62,736, dropping 6% from 66,788 consumer filings in May 2015.
“Businesses, especially those within the energy and retail sectors, continue to turn to the financial fresh start of bankruptcy,” said ABI Executive Director Samuel J. Gerdano. “To better weather the rapidly evolving corporate and financial climate, ABI’s Commission to Study the Reform of Chapter 11 provided modernized tools to give struggling businesses a better chance to reorganize rather than liquidate.”
Total bankruptcy filings for the month of May decreased 6% when compared to the 70,472 total filings recorded the previous month. May’s commercial filing total represented a 5% decrease from 3,515 commercial filings in April 2016. Commercial Chapter 11 filings decreased 10% when compared to the 680 filings in April 2016. Total noncommercial filings for May also represented a 6% decrease from 66,957 noncommercial filings in April 2016.
ABI partnered with Epiq Systems, a provider of managed technology for the global legal profession to provide the most current bankruptcy filing data.