November Individual Chapter 7 Filings Increase 14 Percent Over 2023
December 5, 2024
Source: GlobeNewswire
Total bankruptcy filings were 40,271 in November 2024, a 6 percent increase from the November 2023 total of 37,907. Overall individual bankruptcy filings registered a 7 percent year-over-year increase, as the 37,826 filings in November 2024 represented an increase over the 35,446 individual bankruptcy filings in November 2023. The 14,858 individual chapter 13 filings in November 2024, however, represented a 3 percent decrease from the 15,241 filings the previous November.
“The velocity of new filings in November 2024 was down slightly from prior months, as expected, due to fewer business days and the holiday season,” said Michael Hunter, vice president of Epiq AACER. “The recent rise of default rates in consumer loans, particularly credit cards and auto loans, reflect continued financial stress among households. We anticipate the velocity of new filings to increase once the holiday season concludes and expect the new administration’s planned regulatory changes to influence filings into 2025.”
Overall commercial filings decreased 1 percent to 2,445 in November 2024, down from the 2,461 commercial filings registered in November 2023. Small business filings, captured as subchapter V elections within chapter 11, increased 28 percent to 206 in November 2024, up from 161 in November 2023. November commercial chapter 11 filings were 680, a decrease of 22 percent from the 865 filings registered in November 2023.
“Elevated interest rates, tougher lending terms and increased geopolitical tensions continue to impact the balance sheets of many struggling businesses and families,” said ABI Executive Director Amy Quackenboss. “While still below the levels recorded prior to the pandemic, the steady growth in filings reflects the growing financial challenges faced by distressed companies and consumers.”
Most categories of bankruptcy filings typically drop from October to November due to fewer business days and the Thanksgiving holiday in November. Total and consumer bankruptcies both decreased 15 percent when compared to their respective October filing totals of 47,114 for total filings and 44,515 for consumer filings. Individual chapter 7s decreased 16 percent, and chapter 13s decreased 13 percent, from October’s filings. Overall commercial filings decreased 7 percent from the 2,598 filings registered in October. Commercial chapter 11s did increase 20 percent from October’s 565 filings, and subchapter V elections within chapter 11 increased 2 percent from the 201 filed in October 2024.
ABI has partnered with Epiq Bankruptcy to provide the most current bankruptcy filing data for analysts, researchers, and members of the news media. Epiq Bankruptcy is the leading provider of data, technology, and services for companies operating in the business of bankruptcy. Its Bankruptcy Analytics subscription service provides on-demand access to the industry’s most dynamic bankruptcy data, updated daily. Learn more at https://bankruptcy.epiqglobal.com/analytics.
About Epiq
Epiq, a global technology-enabled services leader to the legal industry and corporations, takes on large-scale, increasingly complex tasks for corporate counsel, law firms, and business professionals with efficiency, clarity, and confidence. Clients rely on Epiq to streamline the administration of business operations, class action and mass tort, court reporting, eDiscovery, regulatory, compliance, restructuring, and bankruptcy matters. Epiq subject-matter experts and technologies create efficiency through expertise and deliver confidence to high-performing clients around the world. Learn more at https://www.epiqglobal.com.
About ABI
ABI is the largest multi-disciplinary, nonpartisan organization dedicated to research and education on matters related to insolvency. ABI was founded in 1982 to provide Congress and the public with unbiased analysis of bankruptcy issues. The ABI membership includes nearly 10,000 attorneys, accountants, bankers, judges, professors, lenders, turnaround specialists and other bankruptcy professionals, providing a forum for the exchange of ideas and information. For additional information on ABI, visit www.abi.org. For additional conference information, visit http://www.abi.org/calendar-of-events.
Press Contacts
Carrie Trent
Epiq, Director of Communications & Public Relations
Carrie.Trent@epiqglobal.com
John Hartgen
ABI, Public Affairs Officer
jhartgen@abi.org