NEW YORK and ALEXANDRIA, Va., Jan. 03, 2024 (GLOBE NEWSWIRE) -- Commercial chapter 11 filings increased 72 percent to 6,569 in calendar year 2023 from the previous year’s total of 3,819, according to data provided by Epiq AACER, the leading provider of U.S. bankruptcy filing data.
Overall commercial filings increased 19 percent to 25,627 from the 21,479 registered the previous year. Subchapter V elections within chapter 11 also experienced a substantial increase in calendar year 2023, as the 1,939 filings represented a 45 percent increase from the 1,334 recorded in 2022.
Total bankruptcy filings in calendar year 2023 were 445,186, an 18 percent increase from the 378,390 registered during calendar year 2022. While representing a substantial year-over-year increase, total bankruptcy filings remain lower than the pre-pandemic total of 757,816 recorded in CY2019.
“As anticipated, we saw new filings in 2023 increase momentum over 2022 with a significant number of commercial filers leading the expected increase and normalization back to pre-pandemic bankruptcy volumes,” said Michael Hunter, Vice President of Epiq AACER. “We expect the increase in number of consumer and commercial filers seeking bankruptcy protection to continue in 2024 given the runoff of pandemic stimulus, increased cost of funds, higher interest rates, rising delinquency rates, and near historic levels of household debt.”
Overall consumer filing totals for calendar year 2023 were 419,559, representing an 18 percent increase from the 356,911 consumer filings the previous year. The 175,964 consumer chapter 13 bankruptcy filings during calendar year 2023 also registered an 18 percent increase over 2022’s total of 149,069. Consumer chapter 7 filings increased 17 percent in CY2023 to 242,936 from 207,188 filings the previous year.
"Though still below pre-pandemic figures, bankruptcies in all filing categories climbed last year amid the evaporation of pandemic emergency responses, increased interest rates and tougher lending standards," said ABI Executive Director Amy Quackenboss. "As interest rates remain elevated, increasing geopolitical tensions weigh on global supply chains and debt loads continue to grow, struggling businesses and families can turn to the proven process of bankruptcy for a financial fresh start."
In partnership with Epiq, an abiLIVE webinar at 2:30 p.m. ET, Jan. 9 will feature experts looking at CY2023 filing trends and providing their thoughts on what could happen with bankruptcies in the year ahead. Speakers on the program include Michael Hunter of Epiq AACER (Jacksonville, Fla.), Lindsay Zahradka Milne of Bernstein, Shur, Sawyer & Nelson, P.A. (Portland, Maine) and ABI's Ed Flynn (Alexandria, Va.). Deirdre O’Connor of Epiq (New York) will serve as moderator for the program. Click here for a complimentary registration.
Total bankruptcy filings were 34,447 in December 2023, a 16 percent increase from the December 2022 total of 29,654. The consumer bankruptcy filing total of 32,390 also represented a 16 percent increase from the 27,917 consumer filings in December 2022. Overall commercial filings increased 18 percent in December 2023, as the 2,057 filings were up from the 1,737 commercial filings registered in December 2022. The 503 commercial chapter 11 filings in December represented a 54 percent increase from the 326 filings in December 2022. Subchapter V elections within chapter 11 experienced a 77 percent increase, from 114 in December 2022 to 202 in December 2023.
ABI has partnered with Epiq AACER to provide the most current bankruptcy filing data for analysts, researchers, and members of the news media. Epiq AACER 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/analytics.
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 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 & Public Relations
Carrie.Trent@epiqglobal.com
John Hartgen
ABI, Public Affairs Officer
jhartgen@abi.org
