January Bankruptcy Filings Decrease Bodes Well for 2012
Alexandria, Va.— The first month of 2012’s bankruptcy rate shows signs of economic recovery and bodes well for the new year.
This past month, total bankruptcy filings in the U.S. decreased by 14 percent year-over-year, according to data provided by Epiq Systems.
Total bankruptcy filings totaled 87,946 in January, down from the January 2011 total of 102,175.
And total commercial filings for January 2012 fell 20 percent to 4,967 from 6,203 recorded in January 2011.
Epiq Solution’s data also showed that the 87,946 total filings recorded in January 2012 represented a 9 percent decrease from the 96,264 filings in December 2011.
Moreover, the total January 2012 commercial filings dropped 10 percent from the 5,496 filings in December 2011.
Commenting on the decline, the American Bankruptcy Institute executive director Samuel Gerdano, noted, “The continued decline in bankruptcies reflects the effort of consumers and businesses to shore up their debt loads in order to navigate through an uncertain economy.
“We expect overall bankruptcy levels in 2012 to continue to trend downward until consumers increase household spending,” he continued.
Moving on, the average nationwide per capita bankruptcy-filing rate for January was 3.41 (total filings per 1,000 per population), and the average total filings per day in January 2012 registered 4,397.
The average total filings per day saw a 14 percent decrease from the 5,109 total filings in January 2011.
And as for the states with the highest per capita filing rate, one Southern state took the lead.
States with the highest per capita filing rate (total filings per 1,000 population) during January 2012 were:
1. Tennessee (6.38).
2. Nevada (6.22).
3. Georgia (5.44).
4. Delaware (5.27).
5. California (5.13).
On the other hand, chapter 11 filing rose in the busiest bankruptcy jurisdictions, increasing by 40 percent in the District of Delaware and by 25 percent in the Southern District of New York.
Adding to this rise were two major chapter 11 cases – Eastman Kodak and Ener1, Inc. – were filed in the S.D.N.Y. in January, while three major cases – Evergreen Energy Inc., Buffets Restaurants Holdings and Trident Microsystems Inc. – were filed in Delaware, officials explained.