According to data provided by Epiq Systems, the American Bankruptcy Institute reported overall bankruptcy filings for the month of February decreased 3% from last year. The 56,694 total filings in February 2018 were down from the 58,392 total filings in February 2017. Consumer filings also decreased 3% in February 2018 to 53,899 from the February 2017 consumer filing total of 55,526.
Total commercial filings decreased slightly in February 2018 to 2,795, representing a 2.5% decrease from the 2,866 business filings recorded in February 2017. However, the 425 total commercial Chapter 11 filings in February 2018 represented an increase of 4% from February 2017’s total of 407.
“Amid rising interest rates and fluctuating market conditions, high filing costs continue to divert struggling consumers and businesses from seeking the financial fresh start of bankruptcy,” said ABI Executive Director Samuel J. Gerdano. “Both the ABI Chapter 11 Reform Commission and ABI’s Commission on Consumer Bankruptcy are working to remove barriers to a financial fresh start for strained businesses and consumers.”
Testifying before the Senate Judiciary Subcommittee on Oversight, Agency Action, Federal Rights and Federal Courts on March 7, Robert J. Keach, the co-chair of ABI’s Commission to Study the Reform of Chapter 11, proposed legislation to provide a viable option for small and medium-sized enterprises (SMEs) looking to reorganize under the Bankruptcy Code.
ABI’s Commission on Consumer Bankruptcy was formed last year to examine ways to improve the bankruptcy system for financially strained consumers. The commission will hold its final open meeting at ABI’s annual spring meeting in Washington, D.C., in April and will release its recommendations later this year.
Total bankruptcy filings for February represented a 4% increase over the January 2018 total of 54,619. The 53,899 total noncommercial filings for February 2018 also represented a 4% increase from the January noncommercial filing total of 51,759. The February 2018 commercial Chapter 11 filing total of 425 represented a 16% increase from the previous month’s commercial filing total of 365. February 2018’s 2,795 commercial filings, however, represented a 2% decrease from the 2,860 filings recorded in January 2018.
