The 4,553 total commercial chapter 11 bankruptcies filed during the first nine months of 2023 represented a 61 percent increase over the 2,837 filed during the same period in 2022, according to data provided by Epiq Bankruptcy, the leading provider of U.S. bankruptcy filing data.
Small business filings, captured as subchapter V elections within chapter 11, totaled 1,419 in the first nine months of 2023, a 41 percent increase from the 1,009 elections during the same period in 2022.
Overall commercial filings registered 18,680 for the first nine months of 2023, representing a 17 percent increase from the commercial filing total of 15,955 during the same period in 2022. Total bankruptcy filings were 332,138 during the first nine months of 2023, also a 17 percent increase from the 284,839 total filings during the same period a year ago.
Total individual filings registered a 17 percent increase year-to-date to 313,458 filings up from the 268,884 filings during the first nine months of 2022. The 131,236 individual chapter 13 filings represented a 19 percent increase over the 110,186 filings during the same period in 2022. Individual chapter 7 filings increased 15 percent to 181,719 from the 158,178 filed in the first nine months of 2022.
“While still below pre-pandemic levels, the numbers of filings demonstrate the difficult challenges and growing debt loads that financially distressed families and businesses are facing in this current economic environment,” said ABI Executive Director Amy Quackenboss. “Struggling individuals and companies have an established lifeline through bankruptcy to help steady themselves amid rising interest rates, inflation and increased borrowing costs.”
Compared to September 2022, overall commercial filings increased 16 percent to 2,342 from 2022. September commercial chapter 11 increased 29 percent to 573 from 455. Total subchapter V election within chapter 11 increased 25 percent to 171 from 137 in September 2022.
All chapters increased in September 2023 compared to September 2022, with the 37,327 total bankruptcy filings representing an increase of 12 percent from the 33,210 filed in September 2022. Total individual filings were up 13 percent, to 35,138 from 31,188. The 19,793 individual chapter 7 filings in September 2023 increased 14 percent over the 17,320 filings in September 2022. Individual chapter 13 were up 11 percent in September 2023 to 15,285 from 13,819 the previous year.
“While year-over-year bankruptcy filings increased across the board during the first nine months, comparing 2023 second and third quarters provides a different perspective where shorter term indicators were mixed,” said Gregg Morin, Vice President of Business Development and Revenue at Epiq Bankruptcy. “Total quarter three filings were up two percent over quarter two, all commercial chapters were down one percent, and all individual chapters were up two percent, compared to the prior quarter-over-quarter period where all chapters increased in filing volume.”