ALEXANDRIA, Va. -

Fueled in part by significant increases in commercial cases, the American Bankruptcy Institute (ABI) reported that total bankruptcy filings rose year-over-year in January.

And the sequential increase in filings was even more noticeable.

According to data provided by Epiq Systems, ABI said total bankruptcy filings increased 1% to 58,126 in January from the 57,657 cases filed in January of last year.

Officials said consumer filings decreased slightly in January to 54,626 cases from the consumer filing total of 54,696 registered a year earlier.

ABI shared a much different picture on the commercial side.

Officials indicated total commercial Chapter 11 filings in January spiked 72% over the same period last year The 630 commercial Chapter 11 filings in January were up from the 366 commercial Chapter 11 filings reported in January of last year.

ABI added total commercial filings in January came in at 3,500, representing an 18% increase from the 2,961 business filings recorded in January 2019.

“Debt-burdened businesses and consumers facing tighter lending standards, marketplace challenges and high filing costs need the shelter of bankruptcy's fresh financial start,” ABI executive director Amy Quackenboss said in a news release.

“The Small Business Reorganization Act takes effect on Feb. 19 to provide a better path for Main Street debtors to restructure their debts,” Quackenboss continued. “Also, the final recommendations of ABI’s Commission on Consumer Bankruptcy provide a blueprint for the courts, Congress and other stakeholders to modernize the Code for consumers wrestling with heavy debt loads.”

Officials also mentioned the 630 commercial Chapter 11 filings completed in January marked a 61% increase over the 391 commercial Chapter 11 cases filed in December.

ABI further pointed out the 3,500 commercial filings in January represented a jump of 21% above the 2,895 commercial filings registered in December.

Officials went on to note total U.S. bankruptcy filings increased 10% in January from the 53,053 total filings in December. Additionally, consumer filings increased 9% in January to 54,626 from the December noncommercial filing total of 50,158.

The latest data also showed the average nationwide per capita bankruptcy-filing rate in January was 2.25 (total filings per 1,000 per population), a slight decrease from December’s rate of 2.43.

Average total filings per day in January came in at 2,768, a 1% increase from the 2,746 total daily filings recorded in January of last year. States with the highest per capita filing rates (total filings per 1,000 population) in January included:

1. Alabama (5.49)

2. Tennessee (5.20)

3. Georgia (4.60)

4. Mississippi (4.22)

5. Arkansas (3.61)

ABI has partnered with Epiq Systems, a leading 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.