NEW YORK, June 03, 2022 (GLOBE NEWSWIRE) — According to data provided by Epiq Bankruptcy, the leading provider of bankruptcy filing data in the United States. Overall business filings were down 4% in May 2022, with 1,738 filings down from 1,813 business filings recorded in May 2021.
Small business filings, captured as Sub-Chapter V elections in Chapter 11, recorded a 21% increase to 123 in May 2022 from 102 in May 2021. The total number of bankruptcy filings was 31 314 in May 2022, down 10% from the May 2021 total of 34,783. Non-commercial bankruptcy filings totaled 29,576 in May 2022, also registering a 10% decline from the May 2021 non-commercial total of 32,970.
“The bankruptcy market continues to navigate uncharted waters as the effect of the global pandemic lingers and uncertainty around U.S. public markets kicks in,” said Chris Kruse, senior vice president at Epiq. “If the economy declines, the bankruptcy market will likely become more active.”
May Chapter 11 commercial filings increased 32% from April 2022’s 250 filings. Total commercial filings represented a 2% decrease from April 2022’s total commercial filings of 1,775. Sub-Chapter V elections within Chapter 11 were up 23% from the 100 filed in April 2022. The total number of bankruptcy filings in May represented a decrease of 4% from the 32,518 total filings recorded on last month. Total non-commercial filings for May also represented a 4% decrease from April 2022’s total of 30,743 non-commercial filings.
“Rising interest rates, inflationary price increases and global supply issues are compounding the economic challenges for families and businesses in financial difficulty,” said ABI Chief Executive Amy Quackenboss. “Legislation now before the House would expand debt eligibility limits for small businesses and individuals, creating better access and a more efficient process for families and businesses looking for debt. a fresh financial start.”
The debt eligibility limit for small businesses to elect Sub-Chapter V returned in March to the original threshold of $2,725,625 from the expanded amount of $7.5 million first established under of the CARES Act of 2020. Legislation was passed in the Senate in April to reinstate the eligibility limit. to $7.5 million and cover all Subchapter V cases that were pending at the time of the March 27 extinguishment. In line with recommendations from ABI’s Consumer Bankruptcy Commission, the surrogate also continues to push for the debt cap for individual filings under Chapter 13 to be increased to $2.75 million and to remove distinguish between secured and unsecured debt for this calculation. The two expanded eligibility limits for small business sub-chapters V and consumer chapters 13 would end after two years.
ABI has partnered with Epiq Bankruptcy to provide the most recent data on bankruptcy filings to analysts, researchers and members of the media. Epiq Bankruptcy is the leading provider of data, technology and services for companies operating in the field of bankruptcy. Its new Bankruptcy Analytics subscription service provides on-demand access to the industry’s most dynamic bankruptcy data, updated daily. Learn more at https://bankruptcy.epiqglobal.com/analytics.
Epiq Bankruptcy is a division of Epiq, a global leader in technology services for the legal services industry and businesses that takes on large-scale and increasingly complex tasks for corporate counsel, law firms and business professionals with efficiency, clarity and confidence. Clients rely on Epiq to streamline administration of business operations, class action and mass torts, court reporting, eDiscovery, regulatory, compliance, restructuring, and bankruptcy matters. Epiq’s experts and technologies create efficiencies through their expertise and instill confidence in top-performing customers around the world. Learn more at https://www.epiqglobal.com.
About the ABI
ABI is the largest multidisciplinary, nonpartisan organization dedicated to research and education on insolvency issues. ABI was founded in 1982 to provide Congress and the public with unbiased analysis of bankruptcy issues. ABI members include nearly 10,000 lawyers, accountants, bankers, judges, professors, lenders, turnaround specialists and other bankruptcy professionals, providing a forum for the exchange of ideas and information. For more information about ABI, visit www.abi.org. For more information on the conference, visit http://www.abi.org/calendar-of-events
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