According to data provided by Epiq Bankruptcy, a provider of U.S. bankruptcy filing data, there were 212 commercial Chapter 11 filings registered in July 2022, a decrease of 13% from the 245 filings in July 2021.
Overall commercial filings decreased 8% in July, as the 1,592 filings were down from the 1,723 commercial filings registered in July 2021. Small business filings, captured as subchapter V elections within Chapter 11, decreased 3% to 104 in July from 107 in July 2021. Total bankruptcy filings were 30,848 in July, a 5% decline from the July 2021 total of 32,399. Noncommercial bankruptcy filings totaled 29,256 in July, also registering a 5% decrease from the July 2021 noncommercial total of 30,676.
“New bankruptcy filings slowed in July, including Chapter 13 cases, which have been on a steady increase so far this year,” Chris Kruse, senior vice president of Epiq Bankruptcy, said. “We continue to monitor closely the impact of new variants of the COVID-19 virus, historically low unemployment rates and fears of difficult economic times ahead, which lead us to anticipate an increase in bankruptcy filings as we exit the summer.”
July’s commercial Chapter 11 filings decreased 53% from the 449 filings in June. The July commercial filing total represented a 15% decrease from the June commercial filing total of 1,878. Subchapter V elections within Chapter 11 increased 7% from the 97 filed in June. July’s total bankruptcy filings represented a 4% decrease when compared to the 32,182 total filings recorded in June. Total noncommercial filings for July represented a 3% decrease from the June noncommercial filing total of 30,305.
“In addition to global supply and inflation concerns, rising interest rates pushing overall borrowing costs higher could leave financially distressed consumers and businesses in a precarious economic position,” Amy Quackenboss, executive director at the American Bankruptcy Institute, said. “Bankruptcy provides refuge for struggling families and businesses looking to establish a financial fresh start.”
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