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Learn how to set up MFA on your PACER Account

PACER is requiring all users with filing privileges (CM/ECF-level access) to enable MFA by December 31, 2025. 

This page will walk you through the process of enrolling your PACER account in their MFA solution and also connecting your BankruptcyWatch account as an App in your PACER account.

In order to do that, you will need 3 things:

Access to the primary email linked to your PACER account

Watch this quick video tutorial to see how it's done:

PACER MFA Tutorial by BankruptcyWatch

Prefer to follow along at your own pace? 

Log into your BankruptcyWatch account, then go to "PACER Accounts" (https://platform.bankruptcywatch.com/pacer-account)

In a different browser tab, log into your PACER account and go to "Manage MFA Settings" (https://pacer.psc.uscourts.gov/pscof/manage/manageMyMfa.jsf)

Paste the security code that has been sent to your primary email address, then click "Submit."

Type "BankruptcyWatch" for the app nickname, then click "Next."

You will be provided a secret key. Copy this key (do not click "Next" yet).

Go to the other browser tab (https://platform.bankruptcywatch.com/pacer-account), click on the three dots next to your default PACER account, and select "Add MFA."

Paste the secret key provided by PACER into the box, then click "Add."

A confirmation message will appear letting you know you successfully added the secret key.

BKW - Adding MFA Secret Key Success Message

Go back to the other browser tab (where you're setting up the PACER authentication app) and click "Next."

You will be prompted to enter a one-time passcode. Open the other tab with your BankruptcyWatch account (https://platform.bankruptcywatch.com/pacer-account).

Click on the three dots next to your default PACER account and select "Generate OTP" (one-time passcode).

Return to the PACER tab, paste the one-time passcode, and click "Next."

Congratulations! You have successfully enabled MFA in your PACER account.

Your BankruptcyWatch account is now ready to work with your PACER account with MFA enabled. No further actions are needed.

We are standing by if you need immediate help. If you find yourself unable to set up MFA on your PACER account, please don’t hesitate to reach out and we'll set up a meeting with you to walk you through the process:

Call our service center at (888) 895-1328

Setting Up MFA on Your PACER Account

Learn about the U.S. Courts' new multifactor authentication (MFA) requirement for PACER and CM/ECF systems beginning May 2025. Discover how BankruptcyWatch's ready-to-go integration ensures uninterrupted bankruptcy automation services while other providers may struggle with this transition. Get a free trial today.

PACER is making a change to their password minimum criteria and requiring 180 day password rotation. This change may affect you as soon as Monday, August 25th.

Locate the credentials you use to access your BankruptcyWatch account.

Determine which of your PACER accounts is connected to BankruptcyWatch.

Visit PACER.gov and navigate to login to “Manage My Account”

Click the link to “Change Password” and proceed to change your password. Don't set MFA until you have finished all of these steps.

Note: As soon as you do this step, you will not be able to access live PACER info via BankruptcyWatch until you register the new password with our system.

6. Reference our technical documentation for the UpdatePacerAccount operation to update your PACER password. 

-OR-

For those of you who connect with us through an integration partner or need a less technical way of resolving this, we are working to provide a user-friendly way to manage and maintain the PACER account(s) you have registered with our system. Instructions for that should be sent sometime on Monday or Tuesday.

We are standing by if you need immediate help. If you find yourself unable to pull live PACER data through our system and you can’t easily resolve the credentials issue, please don’t hesitate to reach out and we'll walk you through the process:

Schedule a call with us at https://calendar.app.google/AHc78eoHdDSWYmos9

Updating BankruptcyWatch PACER Credentials

We have seen a consistent increase in bankruptcy filings for years as bankruptcies rebound from their historic lows during the pandemic. During Q1 2025, we continued to see this trend with significant filing increases across most chapters and jurisdictions, resulting in one of the highest filing quarters since the COVID-19 pandemic.

% Change in Bankruptcy Filings (Filings Q4 2024 - Filings Q1 2025)

Consumer bankruptcy filings rose in the first quarter of 2025, with Chapter 7 filings increasing 5.29% and Chapter 13 filings up 5.11%. Chapter 12 filings also nearly doubled, while Chapter 11 cases saw a slight 0.97% decline from the previous quarter.

We see the rise in consumer bankruptcy filings as a lagging indicator resulting from consumers being pushed to their financial limits. Rising living costs, increasing housing and insurance expenses, high interest rates, and mounting debt in both credit card and auto loan sectors have led many to leverage their credit lines more than ever. The strong job market has been supporting the rising debt levels, but continued debt at high interest rates has pushed an increasing segment of consumers over the edge to bankruptcy. 

Resumed collections on student loans is going to throw a grenade on the delicate balance we've seen. Debtor attorneys are already reporting that their phone lines are ringing off the hook with consumers urgently trying to find ways to manage their payments. One debtor attorney recently reported accelerated interest in bankruptcy unseen since the aftermath of the Great Recession. Typically, it takes about 90 days for these cases to start filing in.

QoQ Change in Chapter 7 Filings (Q4 2024 - Q1 2025)

The quarter-over-quarter uptick in Chapter 7 filings is not surprising because consumers typically prefer to file after the holidays, and debtor attorneys often advise their clients to wait until Q1 or Q2 due to tax return implications.

The national 5.29% increase in Chapter 7 filings doesn’t tell the full story. District-level data shows sharp quarter-over-quarter increases in a number of regions. 

Top Increases - Chapter 7 Bankruptcy Filings QoQ Change

Several large districts - like the Northern and Western Districts of Texas, Southern District of New York, Northern District of California, and Eastern Missouri - saw low or negative Chapter 7 filing growth in Q1 2025, largely due to strong labor markets and stable economic conditions. Unemployment remained low across these regions, and job growth in areas like Dallas, Columbus, and New York City helped households stay current on debts. In addition, many residents in these areas benefit from legal protections that reduce pressure to file, including Texas’s unlimited homestead exemption and New York’s consumer debt reforms.

QoQ % Change in Chapter 13 Filings (Q4 2024 - Q1 2025)

Top Increases - Chapter 13 Bankruptcy Filings QoQ Change

Oregon (+63.8%), Montana (+61.9%), and Connecticut (+58.3%) posted strong gains in both chapters, while smaller districts with higher variance like Alaska (+77.8%) and Northern Oklahoma (+36.6%) saw outsized growth in Chapter 13 alone.

Top Decreases - Chapter 13 Bankruptcy Filings QoQ Change

Several districts saw notable drops in Chapter 13 filings, including Western New York, New Mexico, and Kansas - all down double digits. These declines may reflect more consumers shifting to Chapter 7 or struggling to make Chapter 13 plans work amid rising costs.

QoQ % Change in Chapter 11 Filings (Q4 2024 - Q1 2025)

Looking at the year-over-year changes gives us a clearer picture of the change in filings when you extend the timeline and eliminate seasonal fluctuations. Quarter 1 saw a dramatic increase in consumer filings, with Chapter 7 filings up +12.74% and Chapter 13 filings up +5.99%. Chapter 11 filings, however, dropped by 88.37%.

YoY % Change in Chapter 7 Filings (Q1 2024 - Q1 2025)

Top Increases - Chapter 7 Bankruptcy Filings YoY Change

Several districts saw dramatic 30%+ year-over-year filing increases, including Rhode Island and Idaho. Unlike typical high-growth areas, these regions seem to be catching up after years of modest activity.

Few districts saw a year-over-year decrease in filings. Here are the top ten decreases:

Top Decreases - Chapter 7 Bankruptcy Filings YoY Change

Chapter 13 filings continue to see steady growth. They were the quickest to recover after the pandemic, and we've seen continued growth since then.

YoY % Change in Chapter 13 Filings (Q1 2024 - Q1 2025)

Top Increases - Chapter 13 Bankruptcy Filings YoY Change

Some districts in this list did not see large increases in Chapter 7 filings. This may be a reaction to differing collection regulations in those districts. In districts like Texas and Tennessee, where foreclosure and repossession can happen quickly, many debtors turned to Chapter 13 to protect their homes and cars. Similarly, in Illinois and Maine, low exemption limits and rising home equity pushed consumers toward Chapter 13 to avoid asset loss in a Chapter 7. These cases highlight three of the main drivers influencing Chapter 13 filing decisions: 

1. Aggressive collection activities that threaten immediate loss of property. 

2. Asset values exceeding exemption limits, making them vulnerable in Chapter 7. 

3. Existing payment arrears that preceded the filing. 

Chapter 7 requires debtors to be current on payments for assets they wish to retain. However, Chapter 13 plans can incorporate catch-up payments for existing arrears.

Top Decreases - Chapter 13 Bankruptcy Filings YoY Change

By contrast, districts like the Middle District of North Carolina, Northern District of New York, and Southern Georgia saw declines in Chapter 13 filings while Chapter 7s held steady or rose. These trends suggest that more consumers in those areas are forgoing repayment plans. This often happens when they lack the income or assets to make Chapter 13 a viable option. In these cases, liquidation may be the only realistic path forward.

YoY % Change in Chapter 11 Filings (Q1 2024 - Q1 2025)

% Change in Bankruptcy Filings (Filings Q1 2019 - Filings Q1 2025)

While consumer filings have seen large year-over-year increases, we are still relatively far from 2019 filing levels. At the current rate, consumer filings won't return to 2019 levels until around 2026. There are, however, a couple of factors that could accelerate that timeline:

The restart of student loan payments will likely strain consumer budgets. We've already seen reports of increased interest in bankruptcy from debtor attorneys.

Consumer access to credit has historically been the #1 factor for predicting bankruptcy filing. We are already seeing a shift toward tightened credit access. 

Delinquencies are on the rise. The robust job market currently supports debt payments, but things could change quickly if economic conditions worsen.

Change in Chapter 7 Filings (Q1 2019 - Q1 2025)

Chapter 7 filings have seen the steepest drop-off since 2019. The number of Chapter 7 filings in Q3 of 2022 was down over 30% from the amount from the same quarter of 2019. This is likely the result of increased property value, a strong labor market, and the general increase in wealth in the years since 2019. 

A couple of districts have seen increases in Chapter 7 filings since 2019. Western District of Wisconsin had the most notable increase at 71.71%, possibly related to struggles in farming, manufacturing, housing affordability, and slow wage growth in the region. Wisconsin also has a special state-specific debt consolidation program called Chapter 128. It is very similar to bankruptcy. These may have delayed Chapter 7 filings while people tried debt consolidation for a while until they couldn't anymore. 

Chapter 7 filings in Texas also increased across the board, likely related to increased population growth during the same time.

Top Increases - Chapter 7 Bankruptcy Filings vs 2019

Top Decreases - Chapter 7 Bankruptcy Filings vs 2019

During the pandemic, Chapter 13 filings tanked; however, they were the fastest to recover with a 44% increase from Q3 in 2021 to the same quarter in 2022. Many of the districts with the highest growth during that period are now seeing the year-over-year growth taper out.

Change in Chapter 13 Filings (Q1 2019 - Q1 2025)

Interestingly, there were some districts with more filings in Quarter 3 of 2024 than in the same quarter of 2019:

Top Increases - Chapter 13 Bankruptcy Filings vs 2019

The districts that saw the most significant decrease in Chapter 13 filings since 2019:

Top Decreases - Chapter 13 Bankruptcy Filings vs 2019

Change in Chapter 11 Filings (Q1 2019 - Q1 2025)

In contrast to consumer filings, Chapter 11 filings have increased by 16.96% in Q1 of 2025 compared to Q1 of 2019. This rise was likely driven by high inflation, rising interest rates, increased operating costs, and changing consumer behavior. Many small to medium businesses, especially in retail, hospitality, and commercial real estate, faced added pressure from supply chain disruptions, shifting consumer demands, and reduced access to international markets. For companies struggling with debt yet aiming to stay operational, Chapter 11’s restructuring flexibility has offered a critical lifeline amid these ongoing economic challenges​.

Top Increases - Chapter 11 Bankruptcy Filings vs 2019

Top Decreases - Chapter 11 Bankruptcy Filings vs 2019

Mounting Pressure from Student Loan Repayments

Student loan collections have resumed, and a record percentage of borrowers are seriously delinquent. The NY Fed recently estimated that over 9 million student loan borrowers will face substantial declines in their credit standing over the first quarter of 2025. 

Debtor attorneys' phone lines are already ringing off the hook, and consumers are urgently trying to find ways to manage their payments. One debtor attorney reported that yesterday marked their busiest day since the aftermath of the Great Recession. Typically, it takes about 90 days for these cases to start filing in, but early signs point to student loan repayment as a growing bankruptcy trigger. For borrowers without income-based repayment relief or sufficient earnings, the return of these monthly obligations is rapidly becoming the tipping point in an already fragile household budget.

According to a recent report from CNN, the rate of charge-offs is now higher than the level before the Covid-19 outbreak. Per the NY Fed, household debt has reached an all-time high of $18.04 trillion, driven by record levels in mortgage, auto loan, and credit card balances. Meanwhile, consumer savings rates have significantly declined since their COVID-era peaks. We are seeing the impact of these factors through the rising delinquency rates. A downturn in the labor market or further inflationary pressures could trigger a significant rise in both Chapter 7 and Chapter 13 filings.

Shift from Mortgage-Driven to Consumer Credit-Driven Bankruptcies

During the previous decade, mortgage defaults were the primary driver of bankruptcy filings, as seen in the 2008 financial crisis. However, current reports like TransUnion’s August Credit Industry Snapshot saw serious consumer-level delinquency rates increase across products, except for mortgages. Unlike in past downturns, where mortgage foreclosures pushed filings, we now see bankruptcies tied entirely to credit defaults, a sign that everyday expenses and revolving credit create unsustainable debt loads for many consumers.

Increased Use of Home Equity as a Financial Buffer

According to a recent report from InvestmentNews, nearly half of U.S. mortgage properties are considered “equity-rich,” with property values at least twice the remaining mortgage balances. Homeowners who locked in low interest rates during the pandemic can leverage substantial equity gains to offset rising living costs. This buffer allows many homeowners to avoid bankruptcy by accessing cash via refinancing or home equity loans. Consumers without the safety net from low mortgage interest rates and appreciated property value are facing a much bleaker outlook.

Population Shifts Impacting Bankruptcy Hotspots

The recent uptick in bankruptcy filings in high-growth regions may be partially influenced by population migration to states with favorable tax laws and attractive housing markets. As people continue relocating to these areas, the sheer increase in population alone can drive up filing numbers, creating a statistical impact on bankruptcy rates. Even without significant changes in local economic conditions, more residents inherently mean more potential filings, amplifying the appearance of financial distress in these high-growth regions compared to areas with stable or declining populations.

Utilizing APIs to Automate Bankruptcy Operations

As we’re increasingly seeing, automation through APIs is reshaping the way bankruptcy operations are managed. By leveraging APIs, financial institutions can automate critical workflows like filing updates, case monitoring, and data syncing across platforms, drastically cutting down on manual tasks and reducing the potential for error. While the cutting-edge fintechs were the first to embrace APIs, we've now seen law firms and financial institutions across the spectrum begin to use APIs to automate and integrate their workflows.

Integrated bankruptcy management systems are becoming essential as institutions juggle multiple tasks across various departments and systems. A unified approach allows for seamless coordination between collections, legal, and data teams, enabling them to manage every stage of a case from start to finish within one streamlined system. With bankruptcy integration, all teams have access to the same data and insights, reducing redundancies and ensuring that no critical information slips through the cracks.

The choice between APIs and SFTP (Secure File Transfer Protocol) boils down to the speed and type of data transfer needed. APIs offer a real-time, always-on connection that’s ideal for dynamic operations where immediate updates and quick response times are crucial. On the other hand, SFTP remains useful for secure, high-volume data exchanges that don’t require real-time access, making it a solid choice for certain bulk data transfers. Each method has its place, but as the industry leans toward real-time data access, APIs are becoming the go-to choice for modern bankruptcy operations, keeping teams informed and agile in a fast-moving landscape. Luckily, we work with both!

Q1 2025 Bankruptcy Filing Trends Report

The U.S. Courts will be adding multifactor authentication (MFA) to PACER and CM/ECF systems on May 11th, 2025. Initially, users will have the option to opt in to MFA. However, beginning in August 2025, the Courts will randomly select accounts to force MFA enrollment. By the end of 2025, everyone with CM/ECF filing access will be required to use MFA.

At BankruptcyWatch, we take security seriously and applaud the Court for enhancing its security. We have a solution to integrate with the Court's MFA system so users can continue to use all BankruptcyWatch services uninterrupted.

Changes to BankruptcyWatch include a new Court MFA connector, documentation on integrating BankruptcyWatch with Court MFA services, and additions to our Platform interface to facilitate the transition. BankruptcyWatch account representatives will reach out to current users to ensure a seamless transition.

We're offering free trials for those not yet using BankruptcyWatch who need bankruptcy automation services that stay reliable through Court changes. See how our tools keep working when others might fail.

Court MFA Coming to PACER: BankruptcyWatch Keeps You Filing

Bankruptcy Expert Insights: Justin Plean & Ryan Stone Discuss Q3 Bankruptcy Trends

Hey, I'm Ryan Stone with Bankruptcy Watch and I'm joined with Justin Plean to talk about the latest bankruptcy trends. Justin, how are doing?

Good, thanks for having me back, Ryan. Excited to talk to you.

Cool, well I've been super excited to talk about these trends. I know that we recently released our quarter three report and there's been some really interesting numbers. We can just dive right in. As you see, bankruptcy filings are increasing a lot lately. Especially last week and more broadly over quarter three. And a lot of these increases are double digit increases.

When you look at the filings, you can break it down further and kind of look at the Chapter 7s versus the Chapter 13s. And would love to dive right into that. But before we go into that, Justin, do you have any thoughts about this? Have you kind of been seeing this on the ground? Like, what have you been seeing?

Yeah, absolutely. I mean, a couple really interesting things stick out of my mind when I see this chart. One is follow it, it has a similar pattern, right? So if you go back to 2022, you can see that the spikes are usually in the same places on a month per month basis. Now what's changed from 2022 through 2024 is how significant those spikes are, meaning how many folks are filing for Chapter 7, Chapter 11, Chapter 13 bankruptcy.

It's been consistently going up every month and then the months that usually have a historical lower bankruptcy filings continue that trend. It still dips in months like May, in June, in February, right, but it's also consistently increasing in months like March, April, September, and then it looks like November is probably gonna gonna be gonna be a similar month So it keeps going up and then again, it does look like there's an actual trend when it comes to month over month filings.

Yeah, super interesting. And just to jump into more detail, when we were looking, when I was looking at the quarter three report and comparing quarter three of this year compared to quarter three of last year, the map was quite stark in terms of contrast. You're seeing multiple districts, like many districts with over 30% increases.

You're seeing hot spots in Texas, Florida, really all over. And you're seeing this in Chapter 13s too. Although with Chapter 13s, you're seeing a little bit more diversity with some states and some districts actually decreasing. Do you have any idea, what have you kind of seen for the difference between this increase in Chapter 7s and this decrease in Chapter 13.

Yes, so in order to qualify for a Chapter 7 you have to meet a certain income threshold and so I think what we see within the state of Florida is that there are a lot of folks here that do meet that income threshold to be able to qualify for a Chapter 7 and they're taking advantage of them. Chapter 7s are much more streamlined bankruptcy cases. They usually only last about three months until you get your bankruptcy discharge and then once you have that discharge you're no longer personally liable on the debts and you're at of bankruptcy and you can quickly start recovering faster than if you had to go into a Chapter 13 case where you may have to do a repayment plan for three or five years. So it just looks like folks are just really taking advantage of in a quick filing to their personal liability and then get out so that they can their livelihoods.

Cool, yeah, super interesting. Yeah, and I'm glad you touched on Florida, because as you can see, the Florida numbers are crazy right now. You're seeing a 46% increase in Chapter 7 filings from quarter three of this year versus last year in the Middle district of Florida. You're seeing 43% increase in the southern district, and you're seeing a 21% increase in the northern district.

What do you see as kind of the driving trends that is pushing this up?

Yeah, that's the million dollar question, right? And I think it's a few things, and we can talk about the data a moment. But I think it's cost of living. Cost of living in Florida has continually gone up 2022. And we can look at the data on that. also that Florida is unique in that the homeowners insurance policies have continued to skyrocket over the past few years as well. And so between the cost of living increases, increase in homeowners insurance policies, coupled with the housing market nationally skyrocketing. A lot of folks that have moved here and we've had a significant population shift since 2022 coming to Florida where Florida has had almost 200,000 new residents year over year. And so I think we're seeing a lot of those different variables kind of meeting this perfect storm. And one of the consequences of that are more folks are having to file bankruptcy because they just they can't keep up.

Yeah, super interesting. I know that we had talked about a couple, you mentioned a couple of different things. I wanna dive into I know that we had talked about a couple of different trends that you've noticed and I've got one up here right now showing some different numbers with the Middle District in Florida. Again, Middle District saw the most dramatic increase in Florida from quarter three of last year to this quarter.

What really stands out to me here is that it's really, you're seeing this massive increase and you're also seeing it kind of take the lead in a number of different areas, namely Subchapter V Chapter 11 cases, adversary proceedings, Chapter 7 cases, they are second, that's crazy to see this growth happen in the Middle district of Florida.

Yeah, so this data comes directly from the Middle District of Florida's Bankruptcy Court website. It's public information. And they've done a fantastic job with compiling this data. what's stuck out to you sticks out to me, right? Chapter 7 cases. I think what goes into that is that the Middle District of Florida is a very large district. You have Jacksonville, which is a very large city. You have Orlando. You have Tampa.

You have Fort Myers. And so it's it just spans just a really large chunk of Florida geographically, but in addition to that, it's also a heavily populated area And so I'd be curious to see kind of how the different districts populations match up against one another if I had to take a guess I would say that the Middle District of Florida is probably one of the higher populated districts in the country, and I think that's why we're seeing that they're leading in a lot of these bankruptcy categories nationally and this data was as of March 31st 2024 but I suspect that we'll continue to see these trends moving forward.

Super interesting. Yeah, another thing that we saw released in the Southern District of Florida was the mortgage modification numbers. Do you mind just describing what I'm looking at here?

Yeah, so... I think big picture, this is just a breakdown of the three different divisions in the Southern District of Florida. And this data also comes from the Southern District of Florida Bankruptcy Courts website. And you can find this information on their website. And what they did here was they went back to 2013 on a per division basis, which is Miami, Fort Lauderdale, and West Palm Beach. And they broke down per month how many folks filed for mortgage modification mediation. I think the first thing we should talk about is what is that? What does that mean? What's mortgage modification mediation?

And what that is is a program that was developed here, actually in Florida, where a borrower or a debtor has an opportunity to enter into mediation with their mortgage servicer in an attempt to explore loss mitigation. So loss mitigation could be a loan modification. It's usually I think the first priority for what most debtors want to modify the terms of their loan. It could be a deed in lieu of foreclosure. It could be a short sale. It could be something else.

And so this gives the debtor an opportunity if they have if they're significantly behind on their monthly mortgage payments in a Chapter 13 case to meet with their with their lender cut a lot of the cut a lot of the tape out and see what they can do to explore a loss mitigation on their loan. Now the folks that are doing this folks that are in default? People that are current usually are not exploring mortgage modification mediation and so a lot of times will strategically file Chapter 13 bankruptcy just for the opportunity to go through the mortgage modification mediation program to explore a loss mitigation for their loan. So with all of that said, this chart is really interesting because tells a really important story. It tells a story about in the southern district of Florida, how frequent are folks in default and seeking mortgage modification mediation. And the people that are in default, usually they're not in default a few months. It's usually $10,000 plus. It's usually a significant amount of money, which is why they're pursuing this. So this gives a little bit of a snapshot and insight into the Southern District of Florida of how many folks are in Chapter 13 bankruptcy cases that have significant defaults on their mortgage payments. And what we're seeing is that the defaults are starting to increase come 2024 and that looks like that's what that's what the trending is and It's it's not necessarily surprising because since 2021 2022 here you've had home prices skyrocketing so if a lot of these folks are moving down here and buying and buying houses and they're buying them at much higher prices than they were you know five years ago, plus much higher interest rates, it's not surprising to see that a lot of them may have gotten in over their head and now they're trying to leverage the mortgage modification mediation program to hopefully modify the terms of their loan and get current.

Yeah, I know that one of the things that we've seen and I've had a lot of conversations about is that a lot of people are delinquent on their auto or credit loans while being up to date on their mortgage. And so to see these mortgage modifications start to increase and stuff like that shows that maybe things are starting to shift a different direction.

Yeah, and it makes sense because most of the times the last thing folks want to default on is their mortgage because that's their home, right? That's where they're usually living. That's usually their most significant asset, right? And it's usually the last from a credit standpoint that is getting defaulted on. It usually will be credit cards first and then it'll kind of a waterfall effect. It'll go to auto and then after auto it'll usually go to the mortgage.

Yeah. I know another thing that you can't just skip over when we're talking about Florida specifically and more generally the whole country is the cost of living changes. And up here we have a list from the Florida Department of Revenue in 2024 showing the cost of living adjustments. And I think it's crazy that from 2020 to 2021 you had like a 1.2% increase.

But then from 2022 to 2023, you have an 8% increase. And over the last year, it's been a 4.1% increase. And I think it'd be tough to talk about Florida without talking about these numbers. I know I don't live in Florida, so I can't really speak to the experience of this. what have you been seeing? Have you been seeing this hit the bottom line yet?

Yeah, absolutely. mean, I live in Palm Beach County which is in southern Florida and we see it, we feel it, you feel it at the grocery store, you feel it every time you go shopping and folks have absolutely noticed it and I think these numbers going for about 16, almost a 17% increase of cost of living over the past three years is significant and people probably can't keep up with that. I mean, I don't think their incomes are increasing 17% over the last three years, right? And so it's very hard to stay ahead of this curve. And so I think this data again plays a role into why we're seeing Florida specifically have such a high jump in Chapter 7 and Chapter 13 bankruptcy filings in the Middle District of Florida and Southern District of Florida.

No kidding, jeez. Cool, I wanna just take a step back and notice some of the trends. I know we've talked about the living costs, some of the mortgage modifications, mortgage defaults. There's a couple of factors that previous to this conversation we had talked about as things to watch, things that we're interested in, namely the population shift. I don't think you can talk about Florida and the increase in filings in Florida without talking about the number of people who are moving into Florida. And then the second part is the insurance rates. mean, when you have insurance rates increasing as much as they are, I can only imagine that the increase that combines with the cost of living increase to create kind of a interesting situation where there's a large number of new bankruptcy filings.

Yeah, so just for some context, let's say there was a home in 2016. It has a $1,600 homeowner's insurance policy, right? Eight years later that homeowners insurance policy has probably ballooned to about seven thousand dollars give or take a little bit unless you're being super aggressive with shopping in the insurance market. So I mean just just a jump there of over five thousand dollars in in seven or eight short years a lot of people just see that coming. And I think what you're gonna see is a lot of people are Letting their insurance lapse. So let's say they don't have a mortgage on their property their home is paid off. don't have to escrow their loan, so they're opting to roll the dice and not get homeowners insurance to save a few bucks. And unfortunately, when you live in Florida, it's an amazing state, but one of the cons that come with it are the hurricane season. We've already seen two pretty significant hurricanes hit the state of Florida this season. And a lot of the folks that that may have let their insurance lapse to save some money may have been significantly financially impacted and that can also play into some of numbers that we're seeing with bankruptcy filings.

Super interesting. Yeah. One other question I had is where do you see this going specifically within Florida and maybe within the broader nation? Do you see this increase continuing to happen? What's your forecast?

Yeah, I think it is. think we're going to continue to see it happen or at least continue to rise, at least over the next couple of years. Inflation, inflation decreased the prices that we're paying for goods and for services hasn't kept up with the decrease in inflation. It's still remaining kind of stubbornly high. And so until we see those prices start to come back down to the to the medium, people are still going to continue to have financial troubles because what they paid for a year ago is now a lot more expensive than what they're currently paying for it and their income isn't keeping up with those increases. So until the income start to increase, until the price of goods and services start to decrease, we're going to continue to see increases in bankruptcy filings.

Cool. Well, Justin, I appreciate your insights. I appreciate you joining and explaining some of these trends. And I look forward to talking again sometime.

Absolutely. Thanks again for having me, Ryan.

Q3 Bankruptcy Trends: Justin Plean & Ryan Stone

In a significant update to the PACER Case Locator system on December 8th, 2024, the Court system will require users to include a party's last name for all Social Security Number (SSN) searches on the PACER Case Locator.

In a significant update to the PACER Case Locator system on December 8th, 2024, the Court system will require users to include a party's last name for all Social Security Number (SSN) searches on the PACER Case Locator. This change helps prevent identity theft by making it harder to do random SSN searches. We consider this security enhancement an important step towards better privacy and security for the millions of people who have filed for bankruptcy in the U.S. Court System.

The PACER Case Locator will now require users to search using a last name and an SSN rather than just the SSN.

Navigating bankruptcy records should feel seamless. However, the outdated and intricate PACER system remains an unavoidable hurdle. Its limited interface and bloated navigation make searching for cases less than delightful. Here's how we help:

1. BankruptcyWatch Case Locator: Everything you wish the PACER Case Locator was.

2. The BankruptcyWatch API: The most powerful and comprehensive API to search PACER and more.

3. BankruptcyWatch Integrations: Transform your existing system into a fully functioning bankruptcy management tool by connecting our platform to yours.

PACER Case Locator Changes Coming: What You Need to Know

Bankruptcy filings have been experiencing a double-digit year-over-year increase, but it's crucial to understand the broader context. During the pandemic, bankruptcy filings plummeted to historic lows, with 2020 seeing monthly declines over 40%. The current rise is more of a recovery to pre-pandemic levels. Although this increase is notable, reaching 2019 levels will take months, and 2010 levels even longer. This rebound has led companies and law firms to adjust their staffing to handle the increased volume. Predicting future trends is complex due to various influencing factors. Our technology supports law firms, banks, and credit unions in managing any volume of bankruptcy filings seamlessly.

Bankruptcy filings have been on a double-digit year-over-year upward trajectory for the last couple of years, but it is important to see the bigger picture.

During the pandemic, we saw the largest drop in bankruptcy filings in decades. For example, in 2020, it was common for bankruptcies to see monthly filings drop over 40% year over year.

While we see a rise in bankruptcies, we consider this rise more of a recovery from where bankruptcies were in 2019 and before. If bankruptcies were to continue to rise at current rates, it would be many months before we reach 2019 levels and many more before we get close to 2010 levels.

This is not to say that the rise in bankruptcy filings is not a cause for alarm. Many companies and law firms had to adjust staffing to accommodate the lower filing volume. With bankruptcy filings rebounding, they find themselves restaffing (or modernizing) to deal with the changing filing volume.

Forecasting the trajectory of bankruptcy filings is a complex task, given the multitude of factors at play. While certain elements could fuel an increase in filings (e.g. resumed collections on student loans, increased unemployment, decreased access to credit, increased inflation), there are also factors that could mitigate this trend (e.g. forbearances, more stimulus, consumer credit availability, decreased interest rates, loan forgiveness).

We provide the necessary technology to adapt to any volume of bankruptcy filings. Our mission is to assist law firms, banks, credit unions, and all entities dealing with bankruptcy workflows in seamlessly integrating bankruptcy automation into their existing processes.

Looking at the Bigger Picture Filing Trends

Navigating a bankruptcy docket report shouldn't be a hassle. Recognizing everyone's frustrations, we rolled up our sleeves to revamp the Docket Report for our Platform.

Navigating a bankruptcy docket report shouldn't be a hassle. Recognizing everyone's frustrations, we rolled up our sleeves to revamp the Docket Report for our Platform. We focus on increasing efficiency, reducing costs, and connecting the docket report to relevant workflows. Here are 4 things we’ve done to improve the experience (so far, there’s more to come):

Improvement 1: Less Clicks, More Efficiency

Forget the maze of endless clicks and scattered information. Our focus was on decluttering and streamlining everything:

Everywhere Access: You can jump to the Docket Report from any relevant page—be it the search page, consumer notification, case notification, or the case portfolio page.

One-View Wonder: Why juggle multiple tabs when you can see everything in one place? Documents, party information, and court details, all neatly presented on a single page.

The cost of accessing docket information can add up quickly. We’ve addressed this head-on:

Cached Results: Automatically viewed last cached docket reports at no extra cost. This simple yet revolutionary feature means big savings for our frequent users.

Proprietary Data: Incorporate one of the largest sources of proprietary bankruptcy data in the world, with millions of dollars of Court data cached for Platform.

A docket report should be more than a static page. We turned it into a launchpad for action:

Easy Monitoring: Monitor for important docket updates by adding the case to your Case Monitoring portfolio.

Respond: Create and file Court documents like the Proof of Claim from the docket report page. See your filings appear on the docket report.

This is only the beginning. We’re committed to continuous innovation. Expect more features, refinements, and tools to make your workflows efficient and delightful.

Explore Docket Reports on the BankruptcyWatch Platform and experience the difference for yourself. Try free today.

We are improving the BankruptcyWatch Platform every week. This picture no longer represents all of the functionality included with a bankruptcy notification.

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A guide to filing Proofs of Claim on the BankruptcyWatch Platform.

Platform provides a single form to file claims in any district through a single form. Here's how it works:

First, you want to locate the case where you want to file a Proof of Claim. The case can be found through a notification from our consumer monitoring service or on the Case Search Page. Once you have found the relevant case, you can click the claim button to navigate to the form and import all of the relevant bankruptcy case details.

District: This is where the district where the case was filed. This is automatically populated when you select a case.

Extended Case Number: the extended case number for the case. This is also automatically populated when you select a case.

Start by adding the address for the company. We store address information, so you can quickly reselect the address in future forms. 

Creditor Address: Who is the current creditor? Include the creditor name. 3rd party servicers often put {SERVICER} / {LENDER}.

Payment Address: Where should notices and payments to the creditor be sent? It is very important to identify the correct person and address to receive notifications. Consumer bankruptcies generally move very quickly with short deadlines to respond. Include the address of the creditor. Include the address where payments should be sent if different. 

Signature Address: The address of the person signing the form. Submitting this form has the same legal effect as filing a claim using CM/ECF or submitting a signed proof of claim form at the courthouse.

Signature Type: Identify the signor’s authority to sign the claim. 

Other Names: Is there another name the creditor used with the debtor? Specify that here.

Previous Creditor: Has this claim been acquired from someone else? This is where creditors must disclose if a debt was acquired from another company or person. You should be prepared to disclose the evidence demonstrating you own or are authorized to file the claim.

Previous Filer: Do you know if anyone else has filed a proof of claim for this claim? Occasionally, a different proof of claim may be filed for the same debt.

Give Information About the Claim as of the Date the Case Was Filed.

Claim Amount: How much is the claim? Identify the amount the debtor owed as of the date the bankruptcy was filed. Do not include any amounts that may have come due after the bankruptcy was filed. 

Includes Interest: Select yes if claim amount includes interest or other charges. An additional document must be included if claim amount includes interest. If the amount includes interest, penalties, or fees you must check the box. In addition to the claim, you must provide a detailed breakdown of these additional charges.

Basis of Claim: What is the basis of the claim? This is where you describe why the debtor owes you money. Make sure to include documentation for the basis of the claim. If the claim is based on any type of written document, Bankruptcy Rule 3001(c) requires that a copy of the document(s) be filed with the claim.  If the writing is lost or destroyed, then include a statement of the circumstances of the loss or destruction with the claim. E.g., if your answer is “Money loaned,” then include the agreement the user signed to acquire the loan. Don’t disclose private information (see the redaction section below).

It is important to include supporting documentation for your claim. Often this consists of the agreement/promissory note and the most recent statement. This also includes a detailed breakdown of any additional fees added to the total like interest, penalties or fees. There is also a requirement to redact any information that may contain personal identification information. Make sure to review and redact all information according to Bankruptcy Rule 9037. The following information should not be redacted:

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