Total U.S. bankruptcy filings decreased 11 percent in January from the same period last year, according to data provided by Epiq Systems, Inc. Bankruptcy filings totaled 52,522 in January 2016, down from the January 2015 total of 59,092. Consumer filings declined 12 percent in January 2016 to 49,720 from the January 2015 consumer filing total of 56,611. However, total commercial filings in January 2016 jumped to 2,802, representing a 12 percent increase from the 2,481 business filings recorded in January 2015. The 492 total commercial chapter 11 filings in January 2016 represented a decrease of 6 percent from January 2015’s total of 523.
“Though total and consumer filings continue to drop, more debt-burdened businesses are turning to the financial fresh start of bankruptcy," said ABI Executive Director Samuel J. Gerdano. “As debt and capital structures have grown increasingly complex since the last major overhaul of chapter 11 in 1978, the recommendations of ABI's Commission to Study the Reform of Chapter 11 would provide a modernized toolkit for the court system and struggling businesses.”
Total bankruptcy filings for the month of January 2016 decreased 2 percent compared to the 53,829 total filings registered in December 2015. Total noncommercial filings for January, 49,720, represented a 3 percent decrease from the December 2015 noncommercial filing total of 51,169. The January 2016 commercial filing total of 2,802 represented a 5 percent increase from the December 2015 commercial filing total of 2,660. January 2016’s 492 commercial chapter 11 filings represented a 24 percent increase from the 397 filings recorded the previous month.
The average nationwide per capita bankruptcy-filing rate in January 2016 was 2.02 (total filings per 1,000 per population), a decrease from December 2015’s rate of 2.63. Average total filings per day in January were 1,694, an 11 percent decrease from the 1,906 total daily filings recorded in January 2015. States with the highest per capita filing rate (total filings per 1,000 population) in January 2016 were:
- Tennessee (4.82)
- Alabama (4.35)
- Georgia (4.26)
- Illinois (3.48)
- Delaware (3.23)
ABI has partnered with Epiq Systems, Inc. in order to provide the most current bankruptcy filing data for analysts, researchers and members of the news media. Epiq Systems is a leading provider of managed technology for the global legal profession.
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 more than 12,000 attorneys, accountants, bankers, judges, professors, lenders, turnaround specialists and other bankruptcy professionals, providing a forum for the exchange of ideas and information.
Epiq Systems is a leading provider of managed technology for the global legal profession. Epiq Systems offers innovative technology solutions for electronic discovery, document review, legal notification, claims administration and controlled disbursement of funds. Epiq System’s clients include leading law firms, corporate legal departments, bankruptcy trustees, government agencies, mortgage processors, financial institutions, and other professional advisors who require innovative technology, responsive service and deep subject-matter expertise.