Overall commercial bankruptcy filings increased 8% in August 2024 to 2,562 from 2,358 in August 2023, according to data provided by Epiq AACER, a provider of U.S. bankruptcy filing data. August 2024 commercial chapter 11 filings decreased 3% to 616 from the 635 filings in August 2023. The number of distressed small businesses electing to file for subchapter V of chapter 11 of the U.S. Bankruptcy Code increased 5% to 185 last month from 176 registered in August 2023._x000D_
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The 45,131 total U.S. bankruptcy filings in August 2024 increased 8% from the August 2023 total of 41,642. Individual bankruptcy filings also registered an 8% increase, to 42,569 in August 2024 from the August 2023 individual total of 39,284. The number of consumers filing for chapter 7 increased 11% to 25,432 in August 2024 from the 22,888 who filed for chapter 7 last August, while chapter 13 filings increased 4% to 17,056 in August 2024 from the 16,338 chapter 13 filings in August 2023._x000D_
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“August new filing volumes remained relatively flat month-over-month to end the summer while year-over-year volumes continue to show a steady increase,” Michael Hunter, vice president of Epiq AACER, said. “As delinquency rates increase in many domains, debt levels continue to grow, high interest rates remain intact with relatively flat household income, we expect continued increases in new filing volumes this fall and into the winter of 2024.”_x000D_
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August’s total bankruptcy filings represented a 2% increase from July’s total of 44,439. Total individual filings for August represented a 1% increase from the July 2024 individual filing total of 42,083. Commercial filings registered a 9% increase from the July 2024 commercial filing total of 2,356, and commercial chapter 11 filings grew 21% over the 511 filings in July 2024. Consumer chapter 13 filings increased 5% over the 16,303 filings last month, while chapter 7 filings decreased 1% from the 25,716 chapter 7s filed in July 2024._x000D_
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“As debt loads continue to steadily climb, access to the financial lifeline of bankruptcy is imperative for consumers and businesses,” Amy Quackenboss, executive director of the American Bankruptcy Institute (ABI), said. “ABI remains committed to research focused on improving the availability of a financial fresh start for struggling families and businesses.”
Forward for Specialty Finance
