Epiq, an Atlanta-based provider of intelligence to the legal services industry, has released its April 2022 bankruptcy filing statistics from its new Bankruptcy Analytics platform which found that filings decreased by 10% last month representing 32,508 filings of all types, down from the 36,059 seen in March, but up from the 26,985 seen in February, and 26,149 seen in January.
“New bankruptcy filing volumes continue to decline as the country emerges from the global pandemic,” says Chris Kruse, SVP of Epiq Bankruptcy Technology. “The seasonality we see in March each year also occurred in 2022, and the April decline was expected.”
The 32,508 filings seen in April represent a 21% decrease year-over-year when compared to the 40,931 total filings recorded at that time.
In addition, noncommercial bankruptcy filings totaled 30,747 in April 2022, also registering a 21 percent decrease from the April 2021 noncommercial total of 38,826. Commercial filings decreased 16 percent in April 2022, as the 1,761 filings were down from the 2,105 commercial filings registered in April 2021. There were 249 commercial chapter 11 filings registered in April 2022, a decline of 15 percent from the 290 filings in April 2021. Small business filings, captured as subchapter V elections within chapter 11, decreased 26 percent to 83 in April 2022 from 112 in April 2021.
Total noncommercial filings for April also represented a 10 percent decrease from the March 2022 noncommercial filing total of 34,234. The commercial filing total represented a four percent decrease from the March 2022 commercial filing total of 1,825. Commercial chapter 11 filings decreased 15 percent from the 292 filings in March 2022. Subchapter V elections within chapter 11 declined 40 percent from the 138 filed in March 2022.
“Legislation that passed recently in the Senate and is currently being considered in the House would expand the debt-eligibility limits for small businesses and individuals looking to reorganize their finances,” said ABI Executive Director Amy Quackenboss. “ABI appreciates the work by Congress to create greater access and a more efficient process for small businesses and families to achieve a financial fresh start.”
Click here to view Epiq’s findings in their entirety.