New December bankruptcy filings continue a 14-year slide
NEW YORK, Jan. 05, 2021 (GLOBE NEWSWIRE) — Epiq, a global leader in legal services, released its December 2020 and full-year bankruptcy filing statistics from its AACER bankruptcy information services business. 2020 had the lowest number in bankruptcy filings since 1986 with a total of 529,068 filings across all chapters.
For December, the total new U.S. bankruptcy filings across all chapters was 34,304 for the month, the lowest monthly total since January 2006. The category that continues to grow year-over-year is commercial Chapter 11 filings, which were up 29% with 7,128 new filings in 2020 compared to 5,518 in 2019.
“The peak in Chapter 11 filings for Q2 and Q3 is due to preexisting distressed companies coupled with the onset of a zero-revenue environment. The federal backstop proved a vital lifeline for the stabilization of corporations to protect the US economy,” said Deirdre O’Connor, managing director of corporate restructuring at Epiq. “This federal intervention created record breaking capital deployment fueled by investors chasing yield as companies attempt to ride out this storm.”
“New bankruptcy filings continue to slide into record territory as the global pandemic spurs regulatory intervention to keep U.S. consumers and businesses afloat,” said Chris Kruse, senior vice president of Epiq AACER. “The second stimulus package totaling over $900 billion is getting capital into the market and delaying bankruptcy filings across the country.”
Chapter 13 non-commercial filings in December decreased 46% in 2020 with 147,144 filings, down from 272,420 filings for all of 2019. Chapter 7 non-commercial filings were down 22% in 2020 with 348,428 new filings, down from 444,931 for all of 2019. These two categories are a bellwether for the U.S. consumer market as they are a trailing economic indicator of the overall strength of a market where unemployment continues to ravage the country. “We expect this category to grow substantially in the second-half of 2021,” says Kruse.
About Epiq AACER
Epiq AACER is your partner for bankruptcy information and compliance. Our AACER bankruptcy information services platform is built with superior data, technology, and expertise to create insight and mitigate risk for businesses impacted by bankruptcies. We offer free bankruptcy statistics and monthly email updates for both commercial and non-commercial (consumer) bankruptcy filings for Chapter 7, Chapter 11, and Chapter 13 cases. You may register for these free resources on our Bankruptcy Statistics and Trends page.
Epiq, a global leader in the legal services industry, 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.
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