August and September 2021 bankruptcy filings have been mixed. While certain types of bankruptcy cases have increased, others have gone down, according to data from Epiq’s AACER bankruptcy information services.
According to Epiq, overall bankruptcy filings for all chapters have declined by four percent, with 32,263 new filings made in August 2021 to 30,907 new filings reported in September 2021. Additionally, individual Chapter 7 filings decreased by nine percent between August and September.
Individual consumer bankruptcy cases were not the only forms of bankruptcy on the decline. Epiq also reported the total number of commercial Chapter 11 bankruptcy filings were down by six percent with just 247 new cases filed.
While Chapter 7 filings may have decreased, the total number of Chapter 13 filings increased by six percent with 9,930 cases reported. These figures continue the trend reported with new Chapter 7 filings decreasing every month since March 2021 with new Chapter 13 filings increasing monthly since May 2021.
In addition to new filings, the total number of open bankruptcy cases also continued to decline since the start of 2021. As of September 2021, total open cases went down 11 percent, ending with 773,652 total open cases as of the end of the month. Overall, the number of bankruptcy cases has decreased by 98,556 since January 2021.
With COVID relief programs, such as the eviction moratorium, expiring at the end of September, financial experts do not anticipate the downward trend to continue. In fact, they predict that these trends will quickly change with new filings increasing over the course of the next several months.
It all depends, however, on whether states continue with the various financial relief programs. States, such as California, have extended their own rent reimbursement programs to stave off new bankruptcy filings. Other states, however, have chosen to simply let their programs expire with the federal relief ones.
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If you have questions on this topic or are in financial crisis and considering filing for bankruptcy, contact an experienced Miami bankruptcy attorney who can advise you of all of your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade Garcia McMaken has been helping people from all walks of life build a better tomorrow. Our attorneys’ help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade Garcia McMaken website at www.miamibankruptcy.com.
