3 Factors Help to Push February Bankruptcy Filings Lower Year-Over-Year
ALEXANDRIA, Va. — Stemming from what observers noted as
three post-recession factors sparking the declines, the American Bankruptcy
Institute said total U.S. bankruptcy filings decreased 21 percent in February
compared to the same month last year.
According to data provided by Epiq Systems, bankruptcy
filings totaled 82,285 in February, down from last February's total of 104,537.
The data showed consumer filings declined 21 percent to 78,611 from the
February 2012 consumer filing total of 99,378.
Analysts indicated total commercial filings in February
decreased to 3,674, representing a 29-percent decline from the 5,159 business
filings recorded in February of last year.
Total commercial Chapter 11 filings also decreased 21
percent to 609 filings in February from the 756 commercial Chapter 11 filings a
year earlier.
"The post-recession trends of reduced consumer spending, low
interest rates and tighter lending standards continue to be reflected in fewer
bankruptcy filings," said ABI executive director Samuel Gerdano. "As these
trends persist, expect bankruptcy filings to continue to decline in 2013."
While bankruptcies were down from a year ago, February's
bankruptcy filings trended upward from January.
Total bankruptcy filings for the month of February
represented a 5-percent increase over the 78,565 total filings registered in
January. The total noncommercial filings for February also represented a
5-percent increase from the January noncommercial filing total of 74,831.
Although the February commercial filing total represented a
2-percent decline from the January commercial filing total of 3,734, analysts
pointed out February commercial Chapter 11 filings represented a 27-percent
increase when compared to the 481 filings the previous month.
ABI mentioned the average nationwide per capita bankruptcy
filing rate in February increased to 3.11 (total filings per 1,000 per
population), an increase of 2 percent from the 3.04 rate registered in January.
With fewer days to file in the month, the average total
filings per day in February were 2,939, a 21-percent decrease from the 3,734
total daily filings in February of last year.
States with the highest per capita filing rate (total
filings per 1,000 population) in February were:
1. Tennessee (6.43)
2. Alabama (5.38)
3. Georgia (5.36)
4. Illinois (4.86)
5. Nevada (4.53)
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.
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