The number of U.S. corporate bankruptcy filings have fallen to a low not seen in over 13 years, which has many financial experts questioning whether this trend will continue into 2023.
In 2022, 391 companies filed for bankruptcy. This number is the smallest amount reported from any other comparable period dating as far back as 2010 where 828 corporate bankruptcy cases were filed, according to data from S&P Global Market Intelligence. This drop in filings came after a rise in filings was seen in December when 49 filings were made, as compared to the 31 filings made in November. November and December 2022 saw more filings than any other month in 2022, but the year still ended with a low number of overall corporate filings.
The reason for these low numbers could be due to many factors. Many businesses have been able to stay afloat due to pandemic-era government support programs, which could be why 2021 and 2022 saw slower years for bankruptcies. However, as these relief programs have ended and the fact that a recession is expected to occur in 2023, these numbers could quickly change.
Of the various industries with bankruptcy filings, the industrial market had the most filings for any sector with 59 cases filed in 2022. Within that sector, construction and engineering companies accounted for more bankruptcy filings than any other sector.
The consumer discretionary sector had the second highest number of bankruptcy filings for the year with 54 bankruptcy cases started in 2022. The healthcare sector was third with 40 filings made in 2022. The utilities sector had the lowest number of filings with 6 cases filed in 2022.
In 2022, there were 14 bankruptcy filings with more than $1 billion in liabilities in the year. Two of these larger filings were made in December.
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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.