Commercial Bankruptcy Filings Down from June to July
Commercial bankruptcy filings declined 15% from June to July this year, according to reports from Epiq's AACER bankruptcy information services business. Overall, U.S. bankruptcy filings were down 6%.
"New commercial filings continue to lag as the financial markets continue to offer robust alternatives to restructuring under U.S. bankruptcy code," said Brad Tuttle, general manager of Epiq Corporate Restructuring.
Additionally, certain bankruptcy filings have experienced a staggering decrease compared to the first seven months of 2020. This comparison shows that Chapter 11 filings dropped 43%, while the total amount of new bankruptcy filings decreased by 27% in that same period. Chapter 7 non-commercial filings also decreased (8.4%) from June to July.
Conversely, Chapter 13 non-commercial filings were up 4% from June to July, demonstrating three consecutive months of increase.
"With eviction moratoriums expiring nationwide, it is conceivable that the expected bankruptcy backlog building over the last 15 months could be starting," said Chris Kruse, senior vice president of Epiq Bankruptcy. "However, growing COVID-19 infection rates in every U.S. state may spark additional government support, stalling new filings."–Bryan Mason, editorial associate