According to statistics from the Administrative Offices of the U.S. Courts, the total number of bankruptcy filings increased by 13 percent in the 12 months ending on September 30, 2023. Business bankruptcies during this time increased by approximately 30 percent.
Annual bankruptcy filings were 433,650 as of September 30, 2023, as compared to the 383,810 in September 30, 2022.
Factors contributing to the uptick in filings include rising interest rates and inflation.
Business filings increased at a higher level than personal bankruptcy filings by 30 percent going from 13,125 in 2022 to 17,050 in 2023. These business bankruptcy filings include a number of different cases ranging from airline companies to healthcare businesses to small businesses filing under subchapter V.
According to the U.S. Commerce Department, the nation’s economy has grown at a seasonally and inflation-adjusted 4.9 percent annual rate in the third quarter, which is the fastest rate seen since late 2021. However, despite this, this quarter has been the third straight one that the total bankruptcy filings have gone up following a decade-long decline.
Bankruptcy totals for the previous 12 months are reported four times annually.
This is the third straight quarter that total bankruptcy filings have risen, following a decade-plus decline. Bankruptcies fell especially sharply after the pandemic began in early 2020, despite some COVID-related disruptions to the economy.
Even with the recent increases, total filings remain far lower than in September 2010, when filings peaked at just less than 1.6 million. At that time, the country was still coming out of the Great Recession and was still struggling with the subprime mortgage market collapse, which burst the housing bubble, triggering countless bankruptcy cases.
It is not clear at this time whether the current increase is simply a fluctuation in filings or if it is a sign of more serious times ahead.
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.
SOURCES:
https://www.uscourts.gov/news/2023/10/26/bankruptcy-filings-rise-13-percent