According to new bankruptcy filing data from Epiq Bankruptcy, bankruptcies of all types are up year-over-year in January of 2023.
By the numbers, the total amount of filings in January clocked in at 31,087 which is up 19% from the 26,215 reported in January 2022. Of that number, 29,545 were individual filings, a number which is also up 20% on a yearly basis.
Still below pre-pandemic numbers, individual Chapter 13 filings continued to increase in January as the 13,702 reported filings were a 32% increase over the January 2022 total of 10,346.
Also, according to Epiq, total commercial filings increased 12% to 1,694 in January 2023 over the 1,508 total filings reported in January 2022. Commercial Chapter 11 filings increased 70% to 257 filings up from 151 filings recorded one year ago. All subchapter five small business filings increased 49% to 137 in January 2023 from the 92 filings registered the previous year.
Epiq also said that compared to December 2022, every Chapter new filing except Chapter 12 increased. January’s total filings represented a 5% increase when compared to the 29,640 total filings recorded in December. Total individual filings for January represented a 6% increase from the December 27,911 total, however total commercial filings did decrease 2% from 1,729 in December. Individual Chapter 7 increased 2% from 15,471 and individual Chapter 13 increased 10% over December’s 12,393. Total Chapter 11 filings registered a 16% increase from the 365 filings reported the previous month, and total Chapter 11 subchapter 5 by themselves increased 9% from the 126 filed in December 2022.
“While still below pre-pandemic totals, bankruptcy filings continue to increase amid growing debt loads due to inflationary pressures and reduced availability of low-cost financing,” said ABI Executive Director Amy Quackenboss. “Struggling households and businesses on shaky economic footing can look to bankruptcy to provide a solid path toward a financial fresh start.”
