Total U.S. commercial bankruptcy filings increased 32 percent in May 2016 over May of last year, according to data provided by Epiq Systems, Inc. Commercial filings totaled 3,358 in May 2016, up from the May 2015 total of 2,550. May is the seventh consecutive month with a year-over-year increase in commercial filings. Total commercial chapter 11 filings also climbed in May 2016, as the 611 filings were 22 percent more than the 502 commercial chapter 11 filings registered in May 2015. However, total bankruptcy filings decreased 5 percent to 66,094 in May 2016, down from the May 2015 total of 69,338. Consumer filings were 62,736, dropping 6 percent from the May 2015 consumer filing total of 66,788.
“Businesses, especially those within the energy and retail sectors, continue to turn to the financial fresh start of bankruptcy,” said ABI Executive Director Samuel J. Gerdano. “To better weather the rapidly evolving corporate and financial climate, ABI’s Commission to Study the Reform of Chapter 11 provided modernized tools to give struggling businesses a better chance to reorganize rather than liquidate.”
Total bankruptcy filings for the month of May decreased 6 percent when compared to the 70,472 total filings recorded the previous month. May’s commercial filing total represented a 5 percent decrease from the April 2016 commercial filing total of 3,515. Commercial chapter 11 filings decreased 10 percent when compared to the 680 filings in April 2016. Total noncommercial filings for May also represented a 6 percent decrease from the April 2016 noncommercial filing total of 66,957.
The average nationwide per capita bankruptcy-filing rate in May was 2.56 (total filings per 1,000 per population), unchanged from the first four months of the year. Average total filings per day in May 2016 were 2,132, a 5 percent decrease from the 2,237 total daily filings in May 2015. States with the highest per capita filing rates (total filings per 1,000 population) in May 2016 were:
- Tennessee (5.64)
- Alabama (5.36)
- Georgia (4.56)
- Illinois (4.36)
- Utah (4.09)
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.