Commentary

January 5th, 2021

DECEMBER INSIGHT REPORT

December Bankruptcy Filings Hit 14 Year Low

According to the latest AIS Insight Report, December bankruptcy filings totaled to 34,298, breaking November’s record as the lowest monthly total of filings since January 2006.

Our December analysis of Chapter 13 and Chapter 7 bankruptcies revealed that filings continue to be well below the month averages (Figures 2 & 3). Chapter 7 bankruptcies yielded a 1% decrease from 24,345 filings in November 2020 to 24,111 filings recorded in December 2020. In addition, according to our proprietary database, this is the lowest month total on record for Chapter 7 bankruptcies since January 2006. On the other hand, Chapter 13 bankruptcies increased by 3%, however, it’s still well below the monthly averages (Figures 2 & 3).  

 

Figure 1 

Figure 2

Figure 3

Figure 4

Chapter 11 filings reflected a 39% decrease when compared to November 2020 and a 3% decrease when compared to December 2019 (Figure 5 & 6). However, we did see a slight increase in Chapter 11, Subchapter V bankruptcies (Figure 7). 

Figure 5

Figure 6

Figure 7

The highest percentage of bankruptcies for December 2020 came from the South (East) (28%) followed by North Central (East) (19%), Pacific (14%), South (West) (14%), Northeast (12%), Mountain (7%) and North Central (West) (6%) regions of the country (Figures 8 & 9).

Figure 8

As mentioned in previous months, data confirms that 2020 continues to be an unusual year (Figure 8). A five-year analysis of bankruptcy filings shows a major trend deviation. 

Figure 9

With a new COVID-19 relief package and the extension of the federal moratorium on foreclosures and evictions, experts believe bankruptcies could remain below historic averages until these programs conclude. 

To download the full December Insight Report, click here.