NEW YORK, June 03, 2022 (GLOBE NEWSWIRE) — There were 330 commercial chapter 11 filings registered in May 2022, an increase of 34 percent from the 246 filings in May 2021, according to data provided by Epiq Bankruptcy, the leading provider of U.S. bankruptcy filing data. Overall commercial filings decreased 4 percent in May 2022, as the 1,738 filings were down from the 1,813 commercial filings registered in May 2021.
Small business filings, captured as subchapter V elections within chapter 11, registered an increase of 21 percent to 123 in May 2022 from 102 in May 2021. Total bankruptcy filings were 31,314 in May 2022, a 10 percent decline from the May 2021 total of 34,783. Noncommercial bankruptcy filings totaled 29,576 in May 2022, also registering a 10 percent decrease from the May 2021 noncommercial total of 32,970.
“The bankruptcy market continues to navigate uncharted waters as the effect of the global pandemic lingers and uncertainty around the U.S. public markets enters the mix,” says Chris Kruse, senior vice president at Epiq. “If the economy declines, the bankruptcy market will likely become more active.”
May’s commercial chapter 11 filings increased 32 percent from the 250 filings in April 2022. The commercial filing total represented a 2 percent decrease from the April 2022 commercial filing total of 1,775. Subchapter V elections within chapter 11 increased 23 percent from the 100 filed in April 2022. May’s total bankruptcy filings represented a 4 percent decrease when compared to the 32,518 total filings recorded the previous month. Total noncommercial filings for May also represented a 4 percent decrease from the April 2022 noncommercial filing total of 30,743.
“Rising interest rates, inflationary price increases and global supply concerns are compounding the economic challenges for financially distressed families and businesses,” said ABI Executive Director Amy Quackenboss. “Legislation currently being considered in the House would expand the debt-eligibility limits for small businesses and individuals that would create greater access and a more efficient process for families and businesses looking for a financial fresh start.”
The debt-eligibility limit for small businesses to elect subchapter V reverted in March to the original $2,725,625 threshold from the expanded amount of $7.5 million first established under the CARES Act of 2020. Legislation was passed in the Senate in April to restore the eligibility limit back to $7.5 million and cover any subchapter V cases that were pending at the time of the March 27 sunset. Consistent with the recommendations of ABI’s Commission on Consumer Bankruptcy, the substitute also continues to push for the debt limit for individual chapter 13 filings to be increased to $2.75 million and to remove the distinction between secured and unsecured debt for that calculation. Both of the expanded eligibility limits for small business subchapter Vs and consumer chapter 13s would sunset after two years.
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 new 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.
Epiq Bankruptcy is a division of Epiq, a global technology-enabled services leader to the legal services industry and corporations that 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.
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
Epiq, VP Marketing & Communications