Consumers’ and Businesses’ Bankruptcy Filings Increase in June
7/11/2017 8:59:00 PM
The American Bankruptcy Institute also reports slight increases in filings in the first half of this year over the same time in 2016.
Bankruptcy filings for consumers and businesses increased in June compared to the same time last year, according to a news release from the American Bankruptcy Institute (ABI) and data provided by Epiq Systems, Inc.
There were 581 total commercial chapter 11 bankruptcies in June 2017, a 16 percent increase from 502 filings in June 2016.
In total, U.S. bankruptcy filings in June 2017 increased to 66,757 compared to 66,338 in June 2016, the news release states.
“Total commercial bankruptcies increased to 3,385 filings in June 2017 from the 3,338 registered in June 2016, while noncommercial bankruptcies for June 2017 increased to 63,372 from the 63,000 filings in June 2016,” according to the news release.
Data from the first six months of the year also show an increase in total bankruptcy filings compared to 2016.
Total bankruptcy filings from Jan. 1 through June 30, 2017 increased 0.21 percent to 399,454 over 398,627 in the first six months of 2016, according to the news release.
“Total commercial filings also increased slightly, rising 1 percent to 19,765 during the first six months of 2017 from the 19,567 total commercial filings during the same period a year ago,” it states.
There was also a slight increase in consumer bankruptcy filings during the first half of this year.
Consumer bankruptcy filings in the first six months of this year registered a 0.17 percent increase to 379,689 over 379,060 consumer filings from Jan. 1 through June 30, 2016.
Total commercial chapter 11 bankruptcies for the first half of the year, however, did decline 7 percent over filings in the first half of 2016, 3,013 and 3,225 respectively.
“The economic challenges weighing on the balance sheets of struggling consumers and companies, especially retail businesses, have them seeking the financial shelter of bankruptcy,” said ABI Executive Director Samuel J. Gerdano in the news release. “Total bankruptcies for 2017 will likely approach 800,000, a slight increase over last year.”
The ABI also reports the average nationwide per capita bankruptcy filing rate for the first six months of 2017 increased to 2.57 (total filings per 1,000 per population), which is a slight increase from the 2.54 filing rate from the first five months of the year, according to the news release.
States with the highest per capita filing rate (total filings per 1,000 population) through the first six months of 2017 were: Alabama (5.81); Tennessee (5.69); Georgia (4.73); and Mississippi (4.16) and Utah (4.14.)
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