BY Richard Summerfield
Commercial Chapter 11 bankruptcies increased significantly over the first half of the year, according to Epiq Bankruptcy.
There were 2973 total commercial Chapter 11 bankruptcies filed during the first six months of 2023, a 68 percent increase over the 1766 filings during the same period in 2022. Individual Chapter 13 filings increased by 23 percent during the same period.
June saw a rise of 12 percent in overall commercial filings, with 2123 filings up from the 1891 commercial filings registered in June 2022. The 404 commercial Chapter 11 filings in June represented a 9 percent increase from the 371 filings in June 2022.
Bankruptcy filings for small businesses, known as subchapter V elections within Chapter 11, also increased 55 percent, according to the data.
Furthermore, total bankruptcy filings reached 217,420 during the first six months of 2023, a 17 percent increase from the 185,352 total filings during the same period a year ago. Total individual filings also registered a 17 percent increase, as the 205,313 filings during the first half of 2023 were up from the 175,094 filings during the first six months of 2022. The 85,390 individual Chapter 13 filings in the first half of 2023 represented a 23 percent increase over the 69,367 filings during the same period in 2022.
All chapters increased in June 2023 compared to June 2022, with 37,700 total bankruptcy filings representing an increase of 17 percent from the 32,198 filed in 2022.
Total commercial filings were up 12 percent from 1,891. Total individual filings were up 18 percent from 30,307.
“The increase in commercial and individual bankruptcy filings during the first half of 2023 underscores the economic challenges faced by businesses and individuals,” said Gregg Morin, vice president of business development and revenue at Epiq Bankruptcy.
Some of the most notable recent filings have included SVB Financial Group, Envision Healthcare Corp and Bed Bath & Beyond. An increasing number of companies is encountering financial difficulty as the global economy continues to fluctuate. The coronavirus (COVID-19) pandemic, the ongoing war in Ukraine, rising interest rates, inflation and increased borrowing costs have all impacted organisations significantly in recent years.
News: Commercial Chapter 11 Filings Doubled Over Same Period Last Year