Bankruptcies of all types increased in March 2023, the third month of such increases, according to Epiq Bankruptcy.
According to Epiq, bankruptcies increased 17% year-over-year in March to a total of 42,368 filings from the 36,068 filed last year. This marks the highest number of filings since April 2021 when 40,031 cases were filed.
Year-over-year commercial filings were up 24% to 2,305 compared to 1,854 last year. Commercial chapter 11 filings (including subchapter V) increased 79% to 548 versus the 306 filings registered the previous year. Of the total commercial chapter 11 filings, the 140 subchapter V filings in March represented a 12% increase from the 125 filings in March 2022.
Total individual filings increased 17% to 40,063 versus 34,214 in March 2022. Year-over-year individual chapter 7 filings increased 13% to 24,467 versus 21,594, and individual chapter 13 filings were up 24% to 15,537 versus 12,532 in March of 2022.
“While total filings are up for the third month in a row and exceeded the 40,000 level for the first time in two years, the jump also reflects the historical trend of March consistently being the highest month for filings every year,” said Gregg Morin, VP of Business Development and Revenue for Epiq Bankruptcy.
Looking at the first quarter as a whole, 105,433 bankruptcy cases were filed, representing an 18% increase from the 89,289 filed in the previous quarter. Consumer filings also increased 18 percent, to 99,700 filings in the first quarter of 2023 from the 84,481 consumer filings during the same period in 2022. Individual chapter 7 filings during the first quarter 2023 were 57,172, a 12% increase over the 51,083 individual chapter 7 filings during the same period of 2022. Individual chapter 13 filings during the first quarter 2023 were 42,364, a 28% increase over the 33,189 individual chapter 13 filings in the same period of 2022.
Total month-over-month individual filings increased 33% to 40,063 from 30,188. Individual chapter 7 filings increased 44% to 24,467 from 16,988 in February, while individual chapter 13 filings increased 18% to 15,537 from the 13,148 filed in February.
“The increase in bankruptcy filings in the first quarter of the year demonstrates the growing debt burdens of both consumers and businesses,” said ABI Executive Director Amy Quackenboss. “As inflationary prices have increased in tandem with the cost of borrowing, struggling companies and households have access to a financial reprieve through the bankruptcy process
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