Epiq, an Atlanta-based provider of intelligence to the legal services industry, has released its July 2022 bankruptcy filing statistics from its new Bankruptcy Analytics platform which found that filings decreased by 4.0% last month representing 30,848 filings of all types, down from the 32,175 filings seen in June, and 32,508 filings seen in May.
Year-over-year, this number is down 5% from the 32,399 cases recorded in July 2021.
For Commercial chapter 11 filings, there were 212 recorded cases filed, a decrease of 13% from the 245 filings in July 2021.
Overall, commercial filings decreased by 8% year-over-year in July 2022 as the month recorded 1,592 cases compared to the 1,723 cases filed last year.
According to Epiq, July’s commercial chapter 11 filings decreased 53% from the 449 filings in June 2022. The commercial filing total represented a 15% decrease from the June 2022 commercial filing total of 1,878. Subchapter V elections within chapter 11 increased 7% from the 97 filed in June 2022. July’s total bankruptcy filings represented a 4% decrease when compared to the 32,182 total filings recorded the previous month. Total noncommercial filings for July represented a three percent decrease from the June 2022 noncommercial filing total of 30,305.
“New bankruptcy filings slowed in July, including chapter 13 cases which have been on a steady increase so far this year,” says Chris Kruse, SVP of Epiq Bankruptcy. “We continue to monitor closely the impact of new variants of the COVID-19 virus, historically low unemployment rates, and fears of difficult economic times ahead, which lead us to anticipate an increase in bankruptcy filings as we exit the summer.”
“In addition to global supply and inflation concerns, rising interest rates pushing overall borrowing costs higher could leave financially distressed consumers and businesses in a precarious economic position,” said Amy Quackenboss, ABI’s Executive Director . “Bankruptcy provides refuge for struggling families and businesses looking to establish a financial fresh start.”
Click here to view the report from Epiq.