August 6th, 2020
JULY INSIGHT REPORT
Bankruptcies Remain Down, as Initial Coronavirus Relief Programs Conclude
According to the latest AIS Insight Report, July bankruptcies totalled 42,839, marking a 33% decrease from the 64,320 bankruptcies filed in July 2019 (Figure 1). Chapter 11 filings continue to rise, up 52% from the same month last year.
Our month-over-month comparison reveals that bankruptcy filings increased by less than 1%. And while bankruptcies rose for a second consecutive month, volumes still remain below historical averages.
In July, we commented on a drastic 3-month decline in Chapter 13 filings. Experts speculated that high unemployment numbers meant debtors may not have the financial ability to pay in a Chapter 13. In July, we witnessed an 8% increase in Chapter 13 filings (Figures 2 & 3). Conversely, Chapter 7 bankruptcies accounted for 74% of all filings, marking a 1% decrease from June. (Figures 2 & 3).
July chapter 11 bankruptcies increased by nearly 52% as compared to that of the same month last year. Chapter 11 bankruptcies totaled to 702 in July 2020 compared to a total of 463 in June 2019 (Figure 4 & 5). Moreover, total chapter 11 subchapter V bankruptcies totaled to 140, which was up from 133 last month (Figure 4 &6).
The highest percentage of bankruptcies for July 2020 came from the South (East) (27%) followed by North Central (East) (20%), Pacific (15%), South (West) (14%), Northeast (11%), Mountain (7%) and North Central (West) (6%) regions of the country (Figure 7).
AIS Insight is a proprietary report created by AIS using data derived solely from information obtained from the Federal Bankruptcy Court System and the latest in bankruptcy analytical tools.
To download the full July Insight Report, click here.