There were 631 commercial Chapter 11 bankruptcy filings registered in the U.S. in October, an increase of 106% from the 306 filings registered in October 2022, according to data provided by Epiq Bankruptcy. Overall commercial filings increased 14% to 2,188 in October, up from the 1,916 commercial filings registered in October 2022.
There were 40,628 total bankruptcy filings in October, a 24% increase from the October 2022 total of 32,707. Individual bankruptcy filings totaled 38,440 in October, registering a 25% increase from the filing total in October 2022 (30,791). There were 22,473 individual Chapter 7 filings in October, a 31% increase from the the 17,125 filings recorded in October 2022, and there were 15,901 individual Chapter 13 filings in October, a 17% increase from the 13,618 filings in October 2022.
“As emergency funding from the government, lender forbearance and lower borrowing costs helped to decrease filings during the COVID-19 pandemic, bankruptcies have steadily increased following the sunset of government funding, interest rates increases, inflation growth and tightening lending standards,” Todd Madsen, vice president AACER, said. “October marks 15 consecutive months that total, individual and commercial bankruptcy filings have registered monthly year-over-year increases.”
“Increased prices for goods and services, along with higher borrowing costs, add to the economic challenges faced by distressed families and businesses,” Amy Quackenboss, executive director of the American Bankruptcy Institute, said. “Bankruptcy provides a proven process for struggling consumers and companies to alleviate their intensifying debt loads and a chance for a financial fresh start.”
October filing totals also registered increases across most filing categories when compared to September. October’s total bankruptcy filings represented a 9% increase when compared to the 37,346 total filings recorded in September. Total individual filings for October also represented a 9% increase from the September filing total of 35,141. Likewise, individual Chapter 7 filings increased 14% and Chapter 13 filings increased 4% compared with September’s filings. Commercial Chapter 11 filings increased 8% from September’s Chapter 11 filing total of 584. Subchapter V elections within Chapter 11 increased 2% from the 173 filed in September. Conversely, the commercial filing total decreased 1% from the September commercial filing total of 2,205.
