Bankruptcies Jump by 34% in March

Epiq, an Atlanta-based provider of intelligence to the legal services industry, has released its March 2022 bankruptcy filing statistics from its new Bankruptcy Analytics platform which found that filings increased by 34% last month representing 36,049 filings of all types, up from the 26,985 seen in February, and the 26,149 seen in January. 

However, for the first quarter of 2022 (Jan 1 to March 31), there were a total of 89,252 bankruptcy filings which represented a 17% decrease from the 107,043 filings during the first quarter of 2021. 

“March is typically the month with the largest number of new bankruptcy filings on an annual basis,” says Chris Kruse, Senior Vice President at Epiq. “We continue to watch closely the bankruptcy activity as we emerge from the global pandemic and expect a return to a more active market in the months to come.” 

Additionally, the 34,244 total noncommercial filings in March also represent a 34% increase over February, which saw 25,565 filings. The 1,805 commercial filings during March represents a 26% increase from February which saw 1,428 filings. 

Commercial Chapter 11 filings increased 38% in March to 292 filings, up from 203 from February. 

Small business filings, captured as subchapter V elections within chapter 11, increased 51% to 178 in March from 118 in February. 

“Amid rising interest rates, growing inflation concerns, worker shortages and supply chain challenges, access to bankruptcy is imperative for struggling consumers and businesses,” said ABI Executive Director Amy Quackenboss. “Congressional consideration of legislation permanently making both the expanded eligibility limits for small businesses electing to file for subchapter V under chapter 11, and consumers looking to access chapter 13, would give more families and small businesses the chance at a financial fresh start.”