Bankruptcy Trends

Bankruptcy Filings, Bankruptcy Trends

Bankruptcy Filings See Noticeable Increase in November

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Leading U.S. bankruptcy data provider, Epiq AACER’s latest report revealed a 6% year-over-year increase in total bankruptcy filings in November 2024, reaching 40,271 compared to 37,907 in November 2023. Individual bankruptcy filings increased 7%, reflecting the growing financial pressures among consumers and businesses.

Key Findings in The Report Include:

  • Overall Individual Bankruptcy Filings: Registered a 7% year-over-year increase, with 37,826 filings in November 2024 compared to 35,446 individual bankruptcy filings in November 2023.
  • Individual Chapter 7 Filings: Increased 14% year-over-year to 22,886 in November 2024, up from 20,149 in November 2023.
  • Individual Chapter 13 Filings: Decreased 3% year-over-year to 14,858, compared to 15,241 in November 2023.
  • Commercial Bankruptcy Filings: Declined 1% to 2,445 in November 2024, down from 2,461 a year earlier.
  • Small Business (Subchapter V) Filings: Rose 28% year-over-year, with 206 filings in November 2024, compared to 161 in November 2023.
  • Commercial Chapter 11 Filings: Fell 22% to 680 in November 2024, down from 865 in November 2023, impacted by high-profile cases such as WeWork in the prior year.
  • Total Filings (Month-over-Month): Declined 15% from October’s 47,114 due to fewer business days and the Thanksgiving holiday.
  • Consumer Filings (Month-over-Month): Decreased 15% from October’s 44,515 filings.
  • Commercial Chapter 11 Filings (Month-over-Month): Increased 20% from October’s 565 cases.
  • Subchapter V Filings (Month-over-Month): Rose 2% from October’s 201 filings.

It’s anticipated the rate of new filings will increase once the holiday season ends and it is expected that the new administration’s planned regulatory changes will influence filings into 2025.

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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.

SOURCE: https://www.acainternational.org/news/bankruptcy-filings-see-notable-increases-in-november-2024/

Bankruptcy Filings, Bankruptcy Trends

Bankruptcy Boom: Why More Young Adults are Filing for Bankruptcy

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Bankruptcy filings among 18 to 29-year-olds have surged 17% from Q1 to Q2 of 2024 and are up 13% compared to last year.

While the pandemic produced a drop in filings due to relief measures, debt among young adults has since risen, reaching $1.12 trillion for 18- to 29-year-olds. Filings have jumped 50% since a 24-year low in early 2022.

This trend is aligned with other factors, including rising interest rates, which have driven up minimum credit card payments. Some people avoid filing for bankruptcy due to the fear of damage to their credit and the stigma of being labeled ‘financially irresponsible,’ even when it could offer a much-needed fresh start.

While bankruptcy is often considered damaging to a person’s credit score, that is not entirely accurate. Many people’s credit score is already struggling by the time they consider filing.

Filing for bankruptcy can actually give your credit score a boost once your debts are wiped out, as long as you have a solid plan to rebuild your credit strategically. There are two main types of consumer bankruptcies: Chapter 7 and Chapter 13, and choosing the right one depends on your financial situation. To see if bankruptcy is the right choice for you, start by talking with an experienced attorney who specializes in bankruptcy law.

Click here to read more.

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.

Bankruptcy Filings, Bankruptcy Trends

Bankruptcy Filings Increase by 16 Percent

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Bankruptcy filings rose 16 percent during the 12-month period ending March 31, 2024.

Factors contributing to the increase include higher interest rates, a reduction in consumer discretionary spending, higher housing costs, and a continued drawdown of excess savings.  The trend is expected to continue through 2024.

According to statistics released by the Administrative Office of the U.S. Courts, total filings rose to 467,774 new cases, compared with 403,273 cases reported during the year ending March 31, 2023.

Business filings increased 40.4 percent, from 14,467 in March 2023 to 20,316 in the newest report. Non-business filings rose 15.1 percent, from 388,806 in March 2023 to 447,458 in March 2024.

This year’s 12-month filing total for the quarter ending March 31 is nearly three-fifths of the total reported in March 2020, when the pandemic disrupted the U.S. economy. That year’s 12-month total was 764,282.

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.

SOURCE:

Bankruptcies Rise 16 Percent Over Previous Year | United States Courts (uscourts.gov)

Bankruptcy Filings, Bankruptcy Trends

U.S. Corporate Bankruptcy Filings Hit 13-Year Peak

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Total bankruptcy filings rose 13 percent, and business bankruptcies rose nearly 30 percent, in the twelve-month period ending Sept. 30, 2023, according to the U.S. Courts. This continues a moderate rebound after more than a decade of sharp decline. Corporate bankruptcy filings in the U.S. rose again in December 2023, ending the year with the most filings since 2010.

S&P Global Market Intelligence recorded 50 bankruptcy filings in the month. The total was an increase from the 33 recorded in November.

There were 642 total filings in 2023, significantly above the previous two years and marginally more than in 2020, which saw an influx of Covid-19 related filings.

Seven industrial companies and seven consumer discretionary companies filed for bankruptcy over the month, followed by six filings among information technology companies and six from the healthcare sector.

Consumer discretionary companies recorded the most bankruptcies in 2023 with 82 filings. Many of the companies attributed their filings to rising interest rates and inflation, which impacted their post-pandemic operations.

There were bankruptcy filings in 19 states and the District of Columbia in December, with the greatest number originating from California, Texas, and Florida.

During the year, 95 California companies sought bankruptcy protection, followed by 75 from Texas and 68 from Florida. New York added 58 filings in 2023, while New Jersey registered 31.

Additional states with 15 or more filings in 2023 included Massachusetts, Georgia, Nevada, Illinois, North Carolina, and Pennsylvania.

Source: U.S. Bankruptcies hit 13-year peak in 2023; 50 new filings in December. (January 9, 2024)

Bankruptcy Trends, Business Bankruptcy, Consumer Bankruptcy

Bankruptcy Filings Increase by 13 Percent Despite Historic Low Level of Filings

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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.

Bankruptcy Trends, Business Bankruptcy, Consumer Bankruptcy

Bankruptcy Filings on the Rise

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Local courts are seeing a 10 percent increase in bankruptcy filings, according to a recent United States Courts report.

According to the report issued on July 31, the number of personal and business bankruptcy filings increased by this percentage in the 12-month period ending on June 30, 2023. The Administrative Office of the U.S. Courts reported that a total of 418,724 bankruptcy filings were made in the year ending June 2023, as compared to the 380,634 filed in the year ending June 2022.

Bankruptcy Trends, Consumer Bankruptcy, Consumer Debt

Five Reasons People Go Bankrupt

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The number of bankruptcy filings across the U.S. are on the rise. Common reasons that people file for bankruptcy include loss of income, medical bills, a mortgage payment that is too high, spending beyond their means, or lending money to loved ones.

Many times, it is not just one simple cause, but rather a combination of factors that contribute to why someone has filed for bankruptcy. Here are some common reasons people file bankruptcy.

Bankruptcy Law, Bankruptcy Trends, Consumer Bankruptcy

Bankruptcy Filings on the Rise

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With federal pandemic aid programs ending, many Americans are finding themselves in difficult financial situations. Rising interest rates and high inflation make these situations all that much worse. As a result, bankruptcy courts are now seeing a spike in bankruptcy filings.

According to data from Epiq, the total number of bankruptcy filings increased in January 2023 by 19 percent, to 31,087 filings from one year ago. Additionally, the number of American consumers who filed for bankruptcy in Chapters 7, 11, and 13 increased by 20 percent from one year ago.

Bankruptcy Trends, Consumer Bankruptcy

Bankruptcy Courts See an Increase in Consumer Bankruptcy Filings

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U.S. consumer bankruptcy filings are on the rise again, across all chapters, according to data recently published by Epiq Bankruptcy. This increase in filings represents a change in the trend previously seen with new bankruptcy cases, as numbers have been on the decline since the start of the COVID-19 pandemic.

According to Epiq, the total number of commercial bankruptcy filings increased by twelve percent (12%) in January. In January 2023, 1,694 new commercial bankruptcy cases were filed, as compared to 1,508 filed in January 2022.

Bankruptcy Trends, Business Bankruptcy

2022 U.S. Corporate Bankruptcy Filings Drop to a New Low

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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.