Out of curiosity, we gave OpenAI’s ChatGPT-4 the latest bankruptcy filing data and statistics. We were surprised by its analysis:
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Upon closer examination of the data provided, I can identify the following trends:
In most weeks, the number of bankruptcy filings in 2022 was lower than in 2021. This could indicate an overall decrease in bankruptcy cases year-over-year.
1. The data for 2023, although incomplete, suggests an increase in the number of bankruptcy filings compared to 2022 for the same weeks. If this trend continues, 2023 might experience more filings than 2022.
2. There seems to be a pattern of higher bankruptcy filings around the end of the month, specifically in the weeks of 2022-01-24, 2022-02-21, and 2022-03-28, for both 2021 and 2022 data. This pattern might indicate that financial difficulties culminate towards the end of the month for many people or businesses, leading to increased bankruptcy filings.
3. There are also occasional spikes in bankruptcy filings throughout the year, such as the week of 2022-03-21 and 2022-04-25. These spikes could be due to external factors, such as economic conditions or seasonal variations, affecting the number of filings.
Please note that further analysis or visualization of the data could reveal additional trends or patterns.
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We give this answer a B+. While the answer leaves out the background for the filing trends, it highlighted some of the key bankruptcy patterns we’ve noticed:
1. Bankruptcies plummeted to incredible lows during COVID-19 with year-over-year decreases until 2022. A massive increase in Chapter 13 filings drove filings up in late 2022 and into 2023. Chapter 7 filings are also starting to increase driving overall filings even higher.
2. Many people choose to file their bankruptcy cases at the end of the month. Filing at the end of the month means the debtor has one less month’s income to disclose. Filers may also choose to file at the end of the month to stave off foreclosures happening at the start of the next month.
3. We often see a massive spike in Chapter 7 filings around tax season. Tax returns provide debtors ungarnishable funds to pay a bankruptcy attorney. As a result, it is not abnormal for us to see a 40% increase in filings around tax season.
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