Bankruptcy filings increased in the month of August for all chapters of consumer bankruptcy cases, according to a new study conducted by Epiq. A total of 35,355 bankruptcy filings were reported in August, which represents a 10 percent increase from the total of 32,276 reported in August 2021.
Commercial bankruptcy filings also increased by six percent in August. A total of 1,861 filings were made in August 2022, as compared to the 1,753 cases filed in August 2021. Individual bankruptcy filings increased by 10 percent. A total of 33,494 filings were made in August 2022 and 30,523 were filed in August 2021.
Epiq’s study also showed that bankruptcy filings increased on a month-to-month basis. The total number of filings, including both individual and commercial, showed a 15 percent increase in filings from July to August. The number of commercial filings from July to August increase by 16 percent while the month-to-month individual filings went up by 15 percent from month to month.
Additionally, Chapter 11 filings increased by 81 percent from month to month. Chapter 13 filings also increased buy 15 percent on a month-to-month basis, going from 12,992 filings in July to 14,981 in August. Chapter 7 filings also increased by 13 percent going from 17,593 filings in July to 19,884 filings in August.
Financial experts expect this trend to continue and bankruptcy filings to increase into the fourth quarter of 2022 in both Chapter 7 and Chapter 13 bankruptcy filings. They also anticipate Chapter 11 filings to increase, as well. One of the major reasons for this continuing trend is the fact that consumers are still financially struggling now that governmental assistance programs have for the most part ended. Consumers and businesses are still struggling with expanding debt loads and increasing interest rates. Inflation and supply chain issues have continued to also plague businesses, leading them more into financial struggles. Even though bankruptcy filings are nowhere near where they have been in years past, the numbers are continuing to increase.
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.
