ALEXANDRIA, Va., and NEW YORK -

Total annual bankruptcy filings decreased nearly 25% year-over-year, according to data shared and discussed by Epiq and the American Bankruptcy Institute (ABI).

December bankruptcy filing statistics from the Epiq Bankruptcy AACER platform indicated the closing month of 2021 included 27,957 new filings across all chapters, which was down 4.7% from November that contained 29,328 new filings.

Epiq said total commercial filings across all chapters came in at 1,650 in December, marking a 4.8% rise above November, which had 1,575 new filings.

For the full year, Epiq reported 401,398 total new bankruptcy filings across all chapters, representing a 24.2% decrease compared to 2020, which had a total of 529,222.

Experts pointed out that 2021 new filing metrics include a full year of impact from the COVID-19 global pandemic, while 2020 new filing metrics include pre-pandemic filing activity.

“December individual bankruptcy filing activity continued to trend down as has been the pattern since the COVID-19 global pandemic manifested in the U.S. in March 2020. Commercial filings spiked up sharply month-over-month, but levels continue to be way off pre-COVID-19 levels,” Epiq Bankruptcy Technology senior vice president Chris Kruse said in a news release.

Epiq said December included 16,214 new Chapter 7 individual bankruptcies, down 6.8% from November, which had 17,395 new filings.

For the full year, new Chapter 7 individual bankruptcy filings totaled 265,948, dropping 24.7% from 2020, which included 352,978 new filings, according to Epiq.

In 2021, Epiq indicated the top five states with new Chapter 7 filings included:

— California: 30,917

— Florida: 21,329

— Ohio: 15,956

— Illinois: 13,868

— Michigan: 12,337

The company reported Chapter 13 individual bankruptcies filed in December came in at 10,024 cases, down 2.7% over November 2021, which had 10,306. Epiq mentioned December marked the second month in a row new Chapter 13 filings declined after six consecutive months of incremental increases month-over-month.

For the full year, Chapter 13 filings totaled 112,197, according to Epiq. That’s down 21.4% versus 2020, which had a total of 142,659 new filings.

Epiq noted the Southeast continued to top the nation new Chapter 13 filings with Georgia (10,556), Alabama (8,725), Florida (7,948) and Tennessee (7,372) leading the way as the states with the largest filing activity.

Furthermore, Chapter 11 commercial filings, including Sub Chapter V, had a total of 309 new filings in December, a sharp increase of 56.1% above November which had 198. Of these, 70 were Sub Chapter V, down from 76 the prior month.

Experts added that the full year contained 3,596 new Chapter 11 filings, including Sub Chapter V, down 46.6% from 2020, which had 6,726 new filings.

One more trend: the average nationwide per capita bankruptcy filing rate for all cases in 2021 decreased slightly to 1.29 (total filings per 1,000 population) from the 1.71 rate registered in 2020.

States with the highest per capita filing rates (total filings per 1,000 population) in 2021 included:

1. Alabama (3.13)

2. Nevada (2.57)

3. Tennessee (2.40)

4. Indiana (2.17)

5. Georgia (2.12)

“The decrease in filings in 2021 is a reflection of the government relief programs, moratoriums, lender deferments and low interest rates intended to help families and businesses weather the economic challenges resulting from the COVID-19 pandemic,” ABI executive director Amy Quackenboss said in another news release.

“Consumers and businesses are now facing the new year with less government relief, fewer lender deferments, rising inflation, worker shortages and supply chain challenges as the pandemic continues,” Quackenboss continued. “Bankruptcy helps struggling families and companies by providing a proven path through financially difficult times.”