Tag: Bankruptcy Filings

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)

Consumer Bankruptcy

How to Get a Home Loan After Bankruptcy

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Filing for bankruptcy is not an easy decision. But while filing for bankruptcy can be emotionally challenging, it is a relatively common option to choose. Annual bankruptcy filings totaled 452,990 in 2023, according to a report from the Administrative Office of the U.S. Courts — an increase of nearly 17% compared to 2022, when 387,721 bankruptcy cases were filed.

Oftentimes, it is easier to reestablish credit after filing bankruptcy, because you are essentially given a “clean slate.”

Here are 5 Tips for Getting a Home Equity Loan After Bankruptcy.

  • Timing is everything. Depending on the type of bankruptcy filed, it is crucial to recognize that lenders typically become more willing to work with you as time passes. Be proactive about increasing your credit score after bankruptcy and lenders will view your financial situation more favorably.
  • Rebuild your credit. After filing for bankruptcy, obtain a copy of your credit report to confirm that everything is accurate. Rebuilding your credit should be a top priority. That means paying your bills on time, reducing outstanding debts and using a secured credit card.
  • Shop around. Home equity lenders have different requirements when it comes to lending ‘post-bankruptcy.’ It is in your best interest to take the time to research those lenders who offer terms that are most favorable to you. Compare interest rates, fees, terms and conditions of the loans.
  • Consider a co-signer. A co-signer with a strong credit history can significantly increase your chances of being approved for a home equity loan following bankruptcy. When you add a co-signer to the loan you are essentially vouching that they will repay the loan if you are unable. However, it is important to recognize that co-signers are equally responsible for the loan, and any default can negatively impact that person’s credit.
  • Highlight positive financial changes. When applying for a home loan after bankruptcy, it can be helpful to provide the lender with evidence of positive financial changes you have made since filing.

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:

6 tips for getting a home equity loan after bankruptcy – CBS News

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 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 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 Filings Increase in August

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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.

Bankruptcy Trends, Consumer Bankruptcy

While Bankruptcy Filings Were Down in 2021, Financial Challenges Await for 2022

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Even with the ongoing COVID-19 pandemic, the number of bankruptcies filed in 2021 were down from previous years. However, financial experts fear that these lower numbers will not continue as the COVID-19 pandemic continues into 2022.

According to numbers from the federal court system, a combined total of 434,540 bankruptcy filings were made by both individual consumers and businesses through September in 2021. This figure is 30 percent lower than it was from a similar report issued previously for 2020 bankruptcy filings. According to the federal court system, 612,561 bankruptcy cases were reported for that same period in 2020 and 766,674 cases were filed in 2019 for this same period.

While it is possible that a similar trend could be seen in 2022, it is unlikely. One reason for this decrease in bankruptcy filings could be the number of increased government benefits issued in 2021, including a third round of stimulus checks, monthly child tax credit payments, and additional jobless benefits issued by the government.

Many other benefits have ended as of the end of 2021, including the eviction and foreclosure moratoriums that were keeping financially struggling consumers in their homes. Without additional aid, these individuals may have no other choice but to seek bankruptcy for relief. With no future relief efforts expected in terms of stimulus checks and monthly child tax credit payments, consumers who relied on this safety measure in 2021 to stay afloat may soon find themselves struggling. The last enhanced child tax credit was issued as of December 15, 2021, with no future plans for additional credits in the near future. Certain relief efforts are being continued, including the pause on federal student loan payments. This pause has been extended through May 1, 2022.

Traditionally, it can take a consumer up to two years of struggling financially before making the decision to file for bankruptcy. Often, this decision occurs when the person’s hand is forced through something like an eviction or foreclosure notice. However, given the fact that many consumers have been barely getting by to avoid filing for bankruptcy, that timeline may escalate somewhat once relief programs expire.

The additional factor of inflation has made the situation for many consumers worse. Many consumers have resorted to using credit cards and loans to pay for living expenses. According to the Federal Reserve Bank of New York, credit card and student loan debt rose by $61 billion to a whopping $4.25 trillion in the third quarter of 2021.

A combination of all of these factors could result in a worsening financial picture in 2022, but it remains to be seen just how much of an effect these will have on the number of bankruptcies filed in 2022.

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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.

Bankruptcy Trends

Latest Bankruptcy Filings Mixed

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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.

Consumer Bankruptcy, COVID-19

Consumer Bankruptcy Filings Level Off in August 2021

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Bankruptcy filings leveled off last month, according to figures from technology company, Epiq. The company compiled filings through their AACER bankruptcy program which showed that in the month of August, 32,225 new bankruptcy cases were filed, including Chapter 7 and Chapter 13 consumer bankruptcy cases. This figure is down slightly from the 32,391 reported in July 2021.

Despite the fact that consumer bankruptcy filings have decreased, commercial bankruptcy filings have increased approximately one percent from July 2021 with 1,724 cases filed.

Consumer Bankruptcy

Fear Holds Many People Back from Ever Filing Bankruptcy

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There are many people who can benefit from bankruptcy, but put off filing due to fear and the myths surrounding bankruptcy. Bankruptcy offers consumers a fresh financial start and relief from the burden of debt, but for many, it is the fear of the unknown that holds them back from ever taking the first step. Every year, only a small portion of consumers who could benefit from bankruptcy actually move forward with starting a case.

According to the Federal Reserve Bank of New York, approximately 14 percent (14%) of U.S. households or nearly 17 million consumers owe more than they own. While most of these individuals could benefit from bankruptcy, less than one percent (1%) of them file for bankruptcy annually. In 2020, there were only 752,160 personal bankruptcies filed.