Despite the overall decline, commercial filings continue to increase, according to the American Bankruptcy Institute.
The total bankruptcy filings declined 15 percent to 61,308 in July this year, compared to 71,875 in July 2015. There were 53,386 consumer filings in July, a 16 percent from 69,214 in July 2015.
Total commercial bankruptcy filings, however, increased 10 percent to 2,922 in July 2016 compared to 2,661 in July 2015.“July is the ninth consecutive month with a year-over-year increase in commercial filings. However, total commercial chapter 11 filings decreased in July 2016, as the 355 filings were 45 percent less than the 645 commercial chapter 11 filings registered in July 2015,” according to the news release.
“Businesses facing financial headwinds continue to turn to the financial fresh start of bankruptcy,” said ABI Executive Director Samuel J. Gerdano. “Driven by distress in the energy and retail sectors, commercial bankruptcy filings for 2016 will likely total close to 40,000.”
The American Bankruptcy Institute also reports that the average nationwide per capita bankruptcy-filing rate in July was 2.53 (total filings per 1,000 per population); a slight decrease from the filing rate of 2.56 percent recorded in the first half of this year. There were 1,978 average total filings per day in July 2016, a 15 percent decrease from 2,319 per day in July 2015.
States with the highest per capita filing rate (total filings per 1,000 population) through the first six months of 2016 include: Tennessee (5.56); Alabama (5.34); Georgia (4.62); Illinois (4.21); and Utah (4.10.)