Bankruptcy Filings are on the Rise

The total number of Bankruptcy filings in May of 2017 rose 5% over May of 2016.  The actual number filed in 2017 was 69,668, up from 66,138 cases filed in May of last year according to the American Bankruptcy Institute & Epiq Systems.

Commercial or Business Bankruptcy filings for the month of May also increased at a 5% clip to 3,572 up from 3,412 in May of 2016.

ABI has partnered with Epiq Systems, a provider of managed technology for the global legal profession, in order to provide the most current bankruptcy filing data for analysts, researchers and members of the news media.

(ABI) Executive Director Samuel Gerdano stated “More consumers and businesses faced with mounting financial pressures are turning to the fresh start of bankruptcy.” He further stated “Two ABI efforts are underway to modernize the Bankruptcy Code to meet the current needs of struggling households and business.”

ABI’s Commission on Consumer Bankruptcy recently started holding open meetings to gather suggested improvements that can be made to the existing consumer bankruptcy system. The Consumer Commission's next open meeting will be held on July 15, 2017 at the National Association of Chapter Thirteen Trustees (NACTT) Annual Meeting in Seattle and is a field hearing for the Commission's Chapter 13 Committee.

The Consumer Commission, formed in December of 2016, will release its final report of recommendations at ABI’s Winter Leadership Conference in December of 2018.

Further data shows the May 2017 Bankruptcy Filings are also up 3% from the previous month of April 2017.  May’s commercial filing total represented a 7% increase from the April commercial filing total of 3,351.

The average nationwide per capita bankruptcy filing rate in May of 2017 was 2.57 (total filings per 1,000 per population), a slight increase from the 2.54 filing rate average for the first four (4) month of the year January through April.

The States with the highest per capita filing rates (total filings per 1,000 population) in May were 1. Alabama (5.82), 2. Tennessee (5.66), 3. Georgia (4.69), 4. Utah (4.14) & 5. Mississippi (4.13).

If you are overwhelmed by debt and are having difficulty paying your credit cards, medical bills or personal loans, not to mention your mortgage and vehicle loans, please call one of our conveniently located offices at Bond & Botes to set up a private consultation with one of our experienced attorneys.

We will analyze your situation and help you make the best decision possible to help you navigate your financial problems.