Filing Costs Contribute to Decline in July Bankruptcies
8/7/2017 7:36:00 PM
Total filings for businesses and consumers declined 8 percent from June to July.
The total bankruptcy filings for businesses and consumers saw a decline from June to July, in part due to the cost to complete the filing process, according to the American Bankruptcy Institute (ABI.)
Total filings declined 8 percent to 61,366 in July, according to a news release from the ABI and data provided by Epiq Systems Inc. There were 66,789 filings in June. For consumers alone, there were 58,522 filings in July, also an 8 percent decline from 63,372 filings in June, according to the news release.
“July business filings decreased 17 percent to 2,844 from June’s business total of 3,417. Commercial chapter 11 filings registered a 44 percent decrease in July as the 325 filings were down from last month’s total of 582,” the ABI reports.
ABI’s Chapter 11 Commission and Commission on Consumer Bankruptcy are working on “solutions to make bankruptcy more accessible for struggling businesses and families,” ABI Executive Director Samuel J. Gerdano said in the news release. “High filing costs continue to steer distressed households and businesses away from the financial relief of bankruptcy,” he said.
Commercial bankruptcy filings in July declined slightly to 61,366 compared to the same time last year, according to the ABI. Consumer filings, however, increased slightly by 0.22 percent to 58,391 compared to July 2016.
“Total commercial filings decreased 5 percent from the July 2016 total of 2,980, and commercial chapter 11 filings were down 9 percent from last year’s 358 filings.”
The ABI also reports the average nationwide per capita bankruptcy filing rate in July was 2.54 (total filings per 1,000 per population), a slight decline from the filing rate of 2.57 recorded during the first six months of the year.
States with the highest per capita filing rates in July were: Alabama (5.76); Tennessee (5.62); Georgia (4.74); Mississippi (4.12) and Utah (4.08.)
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