The total number of bankruptcy filings in March increases by 34% compared to
NEW YORK, April 05, 2022 (GLOBE NEWSWIRE) — The March total of 36,049 bankruptcy filings represents a 33.5% increase from 26,993 filings in the previous February, according to data provided by Epiq Bankruptcy, the leading provider of bankruptcy services in the United States. deposit data. Similarly, the 34,244 total non-commercial filings for March represented a 34% increase from February 2022’s total of 25,565 non-commercial filings. The 1,805 total commercial filings in March represented an increase of 26.4 % compared to 1,428 total commercial deposits in the previous month. Chapter 11 commercial filings rose 38% in March to 292 from 203 Chapter 11 commercial filings in February. Small business filings, captured as Subchapter V polls in Chapter 11, rose 51% to 178 in March from 118 in February.
“March is typically the month with the highest number of new bankruptcy filings on a yearly basis,” says Chris Kruse, senior vice president at Epiq. “We continue to closely monitor bankruptcy activity as we emerge from the global pandemic and expect a return to a more active market in the months ahead.”
The 81 Sub-Chapter V elections filed during the week of March 21 represented the highest weekly total on record, eclipsing the previous record of 71 filed in the same week last year. The spike predated the return of the debt eligibility limit from the expanded $7.5 million amount first established under the CARES Act of 2020 to the original threshold of $2,725,625 on March 28 established under the Small Business Reorganization Act of 2019. Due to priorities and procedural issues, the Senate was unable to address legislation before sunset on March 27 to permanently fix the Sub-Chapter V eligibility limit of $7.5 million. Work on a replacement bill is underway on Capitol Hill to permanently restore the $7.5 million eligibility limit and cover all Subchapter V cases that were pending at sunset. of March 27. In line with recommendations from ABI’s Consumer Bankruptcy Commission, the surrogate also continues to push for the debt limit for individual filings under Chapter 13 to be increased to $2.75 million and removes the distinction between secured and unsecured debt for this calculation.
“Amid rising interest rates, growing inflation concerns, labor shortages and supply chain challenges, access to bankruptcy is imperative for consumers and struggling businesses,” said ABI Executive Director Amy Quackenboss. “Congressional consideration of legislation establishing both the expanded eligibility limits for small businesses choosing to file for Subchapter V under Chapter 11, and consumers seeking to access Chapter 13, would give more families and small businesses the chance for a financial fresh start.”
For the first calendar quarter of 2022 (January 1 – March 31), the 89,252 total bankruptcy filings represented a 17% decrease from the 107,043 total filings during the same period last year amid of the pandemic. Non-commercial filings also decreased by 16% to 84,510 filings in the first quarter of 2022 compared to 100,682 non-commercial filings during the same period in 2021. The total number of commercial bankruptcies decreased by 25% in the first quarter of 2022, with 4,742 filings down from 6,361 filings in the first quarter of 2021. Total Chapter 11 commercial filings fell 43% to 720 in the first calendar quarter of 2022 from 1 272 in total for Chapter 11 during the same period in 2021. Sub-Chapter V elections for small businesses increased slightly, as the 399 filings in the first quarter of 2022 increased by 8% compared to the 368 filed in the first quarter of 2021.
ABI has partnered with Epiq Bankruptcy to provide the most recent data on bankruptcy filings to analysts, researchers and members of the media. Epiq Bankruptcy is the leading provider of data, technology and services for companies operating in the field of bankruptcy. Its new 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/analytics.
For more information on the statistics or additional requests, please contact ABI’s Public Affairs Manager, John Hartgen, at 703-894-5935 or [email protected]
Epiq Bankruptcy is a division of Epiq, a global leader in technology services for the legal services industry and businesses that takes on large-scale and increasingly complex tasks for corporate counsel, law firms and business professionals with efficiency, clarity and confidence. Clients rely on Epiq to streamline administration of business operations, class action and mass torts, court reporting, eDiscovery, regulatory, compliance, restructuring, and bankruptcy matters. Epiq’s subject matter experts and technologies create efficiencies through their expertise and instill confidence in top-performing customers around the world. Learn more at https://www.epiqglobal.com.
About the ABI
ABI is the largest multidisciplinary, nonpartisan organization dedicated to research and education on insolvency issues. ABI was founded in 1982 to provide Congress and the public with unbiased analysis of bankruptcy issues. ABI members include nearly 10,000 lawyers, accountants, bankers, judges, professors, lenders, turnaround specialists and other bankruptcy professionals, providing a forum for the exchange of ideas and information. For more information about ABI, visit www.abi.org. For more information on the conference, visit http://www.abi.org/calendar-of-events.