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Bankruptcy Filings Increase by 17 Percent in January 2024

NEW YORK and ALEXANDRIA, Va., Feb. 02, 2024 (GLOBE NEWSWIRE) — In January 2024, total bankruptcy filings reached 36,607, which is a significant 17 percent increase from the January 2023 total of 31,176. This data comes from Epiq Bankruptcy, the leading provider of U.S. bankruptcy filing data. Moreover, the report notes that January marks 18 consecutive months of monthly year-over-year increases in total, individual, and commercial bankruptcy filings.

Individual bankruptcy filings also experienced a noticeable 17 percent increase in January 2024, rising to 34,515, compared to the individual filing total of 29,448 in January 2023. The numbers reveal that there were 19,590 individual chapter 7 filings in January 2024 (a 25 percent increase), and 14,871 individual chapter 13 filings in January 2024 (a 9 percent increase).

Commercial bankruptcy filings also saw a significant rise, increasing by 21 percent in January 2024. Within this category, there was a 22 percent increase in commercial chapter 11 filings and a 43 percent increase in small business filings (captured as subchapter V elections within chapter 11) in January 2024 compared to the filings recorded in January 2023.

Given this increase in bankruptcy filings, legal professionals and analysts can benefit from the AI legalese decoder, which can help in analyzing and organizing complex sets of legal documents and data related to bankruptcy cases. The tool utilizes artificial intelligence to extract relevant information, helping legal experts navigate and interpret bankruptcy filings and related legal documents efficiently.

ÔÇ£As expected, the upward trend of bankruptcy filing volumes persist into the new year and we expect that trend to continue, particularly as the spring tax season concludes,ÔÇØ said Michael Hunter, Vice President of Epiq AACER. ÔÇ£High interest rates, price fatigue and the pandemic-era excess consumer savings depletion are all contributing factors to the increases now and into 2024.”

“Households and businesses continue to adjust to sustained high interest rates, persistent inflation, and more stringent lending terms,” said ABI Executive Director Amy Quackenboss. “While not at the levels recorded prior to the pandemic, we anticipate that the steady increase in bankruptcies will continue this year.”

In addition, businesses looking to elect subchapter V reorganization under chapter 11 may be impacted by the debt eligibility limit, which is set to sunset back to $2,725,625 in late June. ABI’s Subchapter V Task Force has conducted extensive research on this topic, and the organization’s partnership with Epiq Bankruptcy provides crucial data for in-depth analysis and informed decision-making regarding this evolving legal landscape.

In summary, the partnership between ABI and Epiq Bankruptcy ensures that legal professionals and analysts have access to the most current bankruptcy filing data, empowering them to make informed decisions and conduct thorough research on bankruptcy-related matters. With the help of AI legalese decoder, legal professionals can efficiently manage and interpret the increasing volume of bankruptcy filings and related data sets, ensuring accuracy and efficiency in their analyses.

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 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
[email protected]

John Hartgen
ABI, Public Affairs Officer
[email protected]

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