Commercial bankruptcy filings declined, as the 22,339 business filings in calendar year 2021 represented a 31 percent drop from the 32,517 recorded in calendar year 2020. Commercial Chapter 11 filings registered the largest percentage decrease during calendar year 2021, as the total of 3,724 was 48 percent less than the 7,129 Chapter 11 filings recorded during calendar year 2020.

Total bankruptcy filings during calendar year 2021 (Jan. 1-Dec. 31) decreased 24 percent from 2020 amid stabilization measures and lender forbearance in response to the economic challenges resulting from the COVID-19 pandemic. According to data provided by Epiq, total filings fell from 529,106 in 2020 to 401,291 filings during calendar year 2021. Annual bankruptcy filings last registered a similar total in 1984, with 348,521 total filings. Total consumer filings were 378,952 nationwide for calendar year 2021, 24 percent fewer than the 496,589 total filings during 2020. The 2021 consumer filing total is the lowest since the 341,233 filings registered in 1985.

“The decrease in filings in 2021 is a reflection of the government relief programs, moratoriums, lender deferments and low interest rates intended to help families and businesses weather the economic challenges resulting from the COVID-19 pandemic,” said ABI Executive Director Amy Quackenboss. “Consumers and businesses are now facing the new year with less government relief, fewer lender deferments, rising inflation, worker shortages and supply chain challenges as the pandemic continues. Bankruptcy helps struggling families and companies by providing a proven path through financially difficult times.”

December Filings

The 1,661 total commercial filings in December 2021 represented a 24 percent decrease from the 2,197 total commercial filings during the same period in 2020. The 309 commercial Chapter 11 filings in December 2021 were down 22 percent from the 394 recorded in December 2020.

Total bankruptcy filings for the month of December decreased 19 percent to 27,978 in 2021 from the 34,342 filings in December 2020. Similarly, the 26,317 total noncommercial filings for December represented an 18 percent decrease from the December 2020 noncommercial filing total of 32,145.

The average nationwide per capita bankruptcy filing rate for calendar year 2021 decreased slightly to 1.29 (total filings per 1,000 population) from the 1.71 rate during 2020. States with the highest per capita filing rates (total filings per 1,000 population) through December 2021 were:

1. Alabama (3.13)
2. Nevada (2.57)
3. Tennessee (2.40)
4. Indiana (2.17)
5. Georgia (2.12)