Commercial Chapter 11 Filings Increase 40 Percent over the Same Period Last Year
2024年8月6日 - 12:05AM
Commercial chapter 11 filings increased 40 percent in July 2024 to
510 from the 364 filings in July 2023, according to data provided
by Epiq AACER, the leading provider of U.S. bankruptcy filing data.
Overall commercial filings also increased 17 percent in July 2024
to 2,335 from 2,004 in July 2023.
The 44,427 total U.S. bankruptcy filings in July
2024 increased 24 percent from the July 2023 total of 35,727.
Individual bankruptcy filings registered a 25 percent increase, to
42,092 in July 2024 from the July 2023 individual total of 33,723.
The number of consumers filing for chapter 7 increased 32 percent
to 25,720 in July 2024 from the 19,463 who filed for chapter 7 last
July, while chapter 13 filings increased 15 percent to 16,307 in
July 2024 from the 14,211 chapter 13 filings in July 2023.
“We continue to see a strong and steady rise in bankruptcy
filings across the board, reflecting ongoing financial pressures
faced by both businesses and individuals,” said Michael
Hunter, vice president of Epiq AACER. “Based on current
trends and economic indicators, I expect bankruptcy filing volumes
to continue this steady increase throughout the remainder of 2024
and into 2025.”
Small business filings, captured as subchapter V elections
within chapter 11, were 171 in July 2024, registering a 45 percent
drop from June’s record total of 308. The filing decrease followed
a statutory sunset that was unable to be extended by Congress
before June 21. The enhanced subchapter V debt limit established in
March 2020 dropped from $7,500,000 to $3,024,725, and the chapter
13 threshold of $2,750,000 for both secured and unsecured debt
reverted back to a two-part test limiting eligibility to a maximum
of $465,275 for unsecured debt and $1,395,875 for secured debt.
“The reversion of the debt limit narrowed the path for
distressed small businesses looking to access the cheaper and more
efficient process of subchapter V to restructure their debts,” said
ABI Executive Director Amy Quackenboss. “ABI is
ready to work with members of Congress to provide them with the
data necessary to answer questions they might have regarding the
benefits that the higher subchapter V debt limit offers to many
struggling small businesses in their efforts to restructure, so
that more employees can keep their jobs and investors are afforded
a better chance to recover their investments.”ABI's Subchapter V
Task Force on April 19 released its Final Report and
recommendations to Congress, and its findings support maintaining
the eligibility limit of $7.5 million in aggregate noncontingent,
liquidated debt for small businesses looking to reorganize under
subchapter V. Additionally, ABI is creating a portal for subchapter
V practitioners and experts to provide their testimony on their
experiences regarding how the increased debt limit assisted small
business restructurings. The portal will be launched soon at
https://subvtaskforce.abi.org/.
July’s total bankruptcy filings represented a 10 percent
increase from June’s total of 40,276. Total individual filings for
July represented a 12 percent increase from the June 2024
individual filing total of 37,518. Conversely, the commercial
filing total represented a 15 percent decrease from the June 2024
commercial filing total of 2,758, and commercial chapter 11 filings
decreased 48 percent from the 989 filings in June 2024, which saw
two cases with a large number of related filings. Consumer chapter
7 filings increased 16 percent from the 22,190 chapter 7s filed in
June 2024, while chapter 13 filings increased 7 percent over the
15,230 filings last month. Epiq AACER is a division of Epiq and is
the leading provider of data, technology, and services for
companies operating in the business of bankruptcy. Its Bankruptcy
Analytics subscription service provides on-demand access to the
industry’s most dynamic bankruptcy data, updated daily. Learn more
at https://bankruptcy.epiqglobal.com.
About Epiq
Epiq, a global technology-enabled services leader to the legal
industry and corporations, takes on large-scale, increasingly
complex tasks for corporate counsel, law firms, and business
professionals with efficiency, clarity, and confidence. Clients
rely on Epiq to streamline the administration of business
operations, class action and mass tort, court reporting,
eDiscovery, regulatory, compliance, restructuring, and bankruptcy
matters. Epiq subject-matter experts and technologies create
efficiency through expertise and deliver confidence to
high-performing clients around the world. Learn more at
https://www.epiqglobal.com.
About ABI
ABI is the largest multi-disciplinary, nonpartisan organization
dedicated to research and education on matters related to
insolvency. ABI was founded in 1982 to provide Congress and the
public with unbiased analysis of bankruptcy issues. The ABI
membership includes nearly 10,000 attorneys, accountants, bankers,
judges, professors, lenders, turnaround specialists and other
bankruptcy professionals, providing a forum for the exchange of
ideas and information. For additional information on ABI, visit
www.abi.org. For additional conference information, visit
http://www.abi.org/calendar-of-events.
Press Contacts
Carrie Trent Epiq, Director of
Communications Carrie.Trent@epiqglobal.com
John Hartgen ABI, Public Affairs
Officerjhartgen@abi.org