NEW YORK and ALEXANDRIA, Va., July 03, 2024 (GLOBE NEWSWIRE) -- 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 Contacts
Carrie Trent
Epiq, Director of Communications & Public Relations
Carrie.Trent@epiqglobal.com
John Hartgen
ABI, Public Affairs Officer
jhartgen@abi.org
