August Bankruptcy Filings Increase for Consumers and Businesses
9/12/2017 11:27 AM
Consumer filings represent a majority of the bankruptcies in the U.S.
Total bankruptcy filings in the U.S. increased 11 percent in August 2017, according to the American Bankruptcy Institute (ABI).
“Commercial chapter 11 filings totaled 426 in August, a 29 percent increase over July’s total of 331 filings,” according to a news release from the ABI and data provided by Epiq Systems Inc. “Overall business filings also increased as the 3,255 filings were 13 percent more than July’s total of 2,886 filings.”
There were 68,117 total bankruptcy filings from consumers and businesses in August, compared to 61,403 in July, according to the news release.
“The 64,862 consumer filings in August also represented an 11 percent increase from the previous month’s consumer total of 58,517,” it states.
Total bankruptcy filings declined slightly in August 2017 compared to August last year, 68,117 and 68,551 respectively.
The ABI’s Chapter 11 commission recently made recommendations for reform.
“Households and businesses that are sinking in debt can find a financial lifeline through bankruptcy,” ABI Executive Director Samuel J. Gerdano said in the news release. “As the Bankruptcy Code nears 40 years in age, the recommendations of ABI’s Chapter 11 Commission, along with the ongoing efforts of the Commission on Consumer Bankruptcy, aim to make bankruptcy more accessible for struggling businesses and families.”
The ABI also reports the average nationwide per capita bankruptcy filing rate in August was 2.55 (total filings per 1,000 per population), a slight increase from the filing rate of 2.54 recorded during the first seven months of the year.
The average total filings per day in August were 2,962, a 1 percent decrease from the 2,980 total daily filings in August 2016, according to the news release.
States with the highest per capita filing rates in August were: Alabama (5.82); Tennessee (5.66); Georgia (4.75); Mississippi (4.16) and Utah (4.12.)
To review the final recommendations of the ABI Commission to Study the Reform of Chapter 11, please click here. To view the ongoing work and upcoming meetings of ABI’s Commission on Consumer Bankruptcy, please click here.
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