In a release issued earlier today by Epiq, please note that
percentages and figures throughout the release required
updating. The corrected release follows:
Commercial Filings Increased 24 Percent
in First Half of 2024
Total Filings Increased 15
Percent
The 3,016 total commercial chapter 11 bankruptcies
filed during the first six months of 2024 represented a 34 percent
increase over the 2,247 total commercial chapter 11 filings during
the same period in 2023, according to data provided by Epiq AACER,
the leading provider of U.S. bankruptcy filing data.
Small business filings, captured as subchapter V elections
within chapter 11, totaled 1,176 in the first half of 2024, a 61
percent increase from the 730 elections during the same period in
2023.
“Commercial filing trends continue to show strong double digit
percentage increases in year-over-year filings, while individual
filings increased at a much lower rate compared to commercial
filings in the first half of 2024,” said Michael Hunter, vice
president of Epiq AACER. “I expect a strong demand in individual
filings ahead of us, especially considering the large increase in
commercial filings, consumer debt levels, high interest rates, and
overall increased costs with relatively flat household income. The
timeframe from the onset of individual financial stress to a
bankruptcy filing is generally six to 18 months.”
Total bankruptcy filings were 251,012 during the first six
months of 2024, a 15 percent increase from the 217, 483 total
filings during the same period a year ago. Total individual filings
also registered a 15 percent increase, as the 235,878 filings
during the first half of 2024 were up from the 205,301 filings
during the first six months of 2023. The 93,873 individual chapter
13 filings in the first half of 2024 represented a 10 percent
increase over the 85,395 filings during the same period in
2023.
“The continued increase in bankruptcy filings reflects the
growing economic strain on businesses and households,” said ABI
Executive Director Amy Quackenboss. “We hope that efforts continue
on Capitol Hill to reinstate higher debt-eligibility limits for
small businesses and chapter 13 filers to create greater access and
a more efficient process for small businesses and families to
achieve a financial fresh start.”
Due to a statutory sunset that was unable to be extended by
Congress before June 21, the enhanced subchapter V debt limit
established in March 2020 dropped from $7,500,000 to $3,024,725,
and the chapter 13 threshold of $2,750,000 for both secured and
unsecured debt reverted back to a two-part test limiting
eligibility to a maximum of $465,275 for unsecured debt and
$1,395,875 for secured debt.
Sen. Richard Durbin (D-Ill.), who, along with a group of
bipartisan senators, had introduced S. 4150 on April 17 to extend
the enhanced limits for subchapter V elections and chapter 13
filers for an additional two years, has vowed to continue to try to
restore greater access for small businesses and consumers. ABI's
Subchapter V Task Force in its Final Report and recommendations to
Congress supports an eligibility limit of $7.5 million in aggregate
noncontingent, liquidated debt for small businesses looking to
reorganize under subchapter V.
Epiq and ABI will host an abiLIVE webinar later this month
featuring experts providing their insights on mid-year 2024 filing
trends. Deirdre O’Connor, Managing Director for Corporate
Restructuring at Epiq, will serve as the moderator, with speakers
including Hunter, Lindsay Milne of Bernstein Shur, and ABI's Ed
Flynn. More information will be available at
https://www.abi.org/calendar-of-events. ABI has partnered with Epiq
AACER to provide the most current bankruptcy filing data for
analysts, researchers, and members of the news media. Epiq AACER is
the leading provider of data, technology, and services for
companies operating in the business of bankruptcy. Its Bankruptcy
Analytics subscription service provides on-demand access to the
industry’s most dynamic bankruptcy data, updated daily. Learn more
at https://bankruptcy.epiqglobal.com/analytics.
About Epiq Epiq, a global technology-enabled
services leader to the legal industry and corporations, takes on
large-scale, increasingly complex tasks for corporate counsel, law
firms, and business professionals with efficiency, clarity, and
confidence. Clients rely on Epiq to streamline the administration
of business operations, class action, and mass tort, court
reporting, eDiscovery, regulatory, compliance, restructuring, and
bankruptcy matters. Epiq subject-matter experts and technologies
create efficiency through expertise and deliver confidence to
high-performing clients around the world. Learn more at
www.epiqglobal.com.
About ABI 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 nearly 10,000
attorneys, accountants, bankers, judges, professors, lenders,
turnaround specialists and other bankruptcy professionals,
providing a forum for the exchange of ideas and information. For
additional information on ABI, visit www.abi.org. For additional
conference information, visit
http://www.abi.org/calendar-of-events.
Press ContactsCarrie TrentEpiq, Director of
Communications & Public
RelationsCarrie.Trent@epiqglobal.com
John Hartgen ABI, Public Affairs Officerjhartgen@abi.org