U.S. commercial bankruptcy filings during the first nine months of the year increased 28 percent to 28,789 over the 22,444 filings during the same period in 2015, according to data provided by Epiq Systems, Inc. Commercial chapter 11 filings rose slightly during the first nine months of 2016 as the 4,311 filings represented a 5 percent increase from the 4,091 chapter 11 filings during the first nine months of 2015. However, total bankruptcy filings fell 6 percent during the first nine months of 2016 (Jan. 1-September 30) from the same period a year ago as the 593,034 filings decreased from 629,754 in 2015. The 564,245 total noncommercial filings through the first three quarters of 2016 also represented a 7 percent drop from the noncommercial filing total of 607,310 through the first three quarters of 2015.
“The roadmap for distressed businesses to reorganize through chapter 11 has not received a major update since 1978," said ABI Executive Director Samuel J. Gerdano. “As more debt-burdened companies look to the financial relief of bankruptcy, the recommendations of ABI's Commission to Study the Reform of Chapter 11 provide an updated route to navigate today's complex debt and capital structures.”
Total commercial filings for September 2016 were 3,072, representing a 38 percent increase from the 2,219 filings during the same period in 2015. Commercial chapter 11 filings increased to 364 chapter 11 filings in September 2016, representing an 8 percent increase over the 337 filings in September 2015. However, the 64,592 total bankruptcy filings for the month of September represented a 4 percent decrease compared to the 67,171 filings in September 2015. The 61,520 total noncommercial filings for September also represented a 5 percent drop from the September 2015 noncommercial filing total of 64,952.
The average nationwide per capita bankruptcy filing rate for the first nine calendar months of 2016 (Jan. 1-Sept. 30) decreased slightly to 2.54 (total filings per 1,000 population) from the 2.55 rate for the first eight months of the year. The average daily filing total in September 2016 was 2,153, a 4 percent decrease from the 2,239 total daily filings registered in September 2015. States with the highest per capita filing rates (total filings per 1,000 population) through the first nine months of 2016 were:
- Tennessee (5.67)
- Alabama (5.52)
- Georgia (4.75)
- Illinois (4.19)
- Utah (4.17)
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 11,000 attorneys, accountants, bankers, judges, professors, lenders, turnaround specialists and other bankruptcy professionals, providing a forum for the exchange of ideas and information.