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Epiq, an Atlanta-based provider of intelligence to the legal services industry, has released its August 2022 bankruptcy filing statistics from its new Bankruptcy Analytics platform which found that filings increased by 10% since last year representing 35,276 filings of all types, up from the 30,848 seen in July, 32,175 filings seen in June, and 32,508 filings seen in May.
According to Epiq, total filings also show a 15% increase month-over-month compared to the July 2021 total of 30,854 filings.
Epiq also noted that for the first time in months, all chapters of bankruptcy registered a month-over-month increase.
Chapter 11 filings increased 81% to 466 (from 257 in July), Chapter 13 increased 15% to 14,981 filings (from 12,992), Chapter 7 filings increased 13% to 19,884 filings (from 17,593).
Commerical filings increased 6% as the 1,861 were up from the 1,753 seen last year.
“New bankruptcy filings in August clearly show momentum in the market,” said Chris Kruse, SVP at Epiq Bankruptcy. “Chapter 13 new filings continue the recent trend of month-over-month growth, and for the first time since March, we also see increases in new Chapter 7 filings in August. We expect this trend to continue as the U.S. exits the summer and marches toward the fourth quarter.”
From a commercial Chapter 11 perspective, filings continue to trend up. August’s Chapter 11 filings totaling 466 increased 81% from the 257 registered in July 2022. Small business filings, captured as subchapter V elections within Chapter 11, increased 41% to 140 in August 2022 from 99 in August 2021. Similarly, August’s commercial Chapter 11 filings were up 91% over the 212 filings in July 2022. The commercial filing total represented a 16% increase from the July 2022 commercial filing total of 1,607. Subchapter V elections within Chapter 11 increased 42% from the 85 filed in July 2022.
“Financially distressed households and companies are experiencing expanding debt loads amid rising interest rates, inflation, and supply chain concerns,” said ABI Executive Director Amy Quackenboss. “Though still at historically low numbers, the increase in bankruptcy filings in August points to more families and businesses looking for a path to alleviate mounting financial challenges.”
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