Bankruptcy Data & Statistics

Real-time bankruptcy statistics to help you make better business decisions, faster. Industry market research reports, statistics, analysis, data, trends, and more.

*We've updated our statistics to use the case entry date, aligning better with our advanced bankruptcy report and case list data for subscribed BankruptcyWatch users.

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Our Analysis of the Bankruptcy Statistics (Updated May 29th, 2024)

Bankruptcy filings continue their upward trajectory. Chapter 7 filings—a lifeline for many struggling households—increased by 17.24% year-over-year (5,303 in 2023 to 6,217 in 2024). Chapter 13 filings, allowing individuals to restructure their debt, increased by 7.51% year-over-year (3,396 in 2023 to 3,651 in 2024). Chapter 11 filings, often used by businesses dealing with insolvency, increased by 36.97% year-over-year (119 in 2023 to 163 in 2024). The general increase in Chapter 7 and Chapter 13 filings continues to drive the bulk of the year-over-year growth.

Chapter 7 cases continue to dominate in sheer numbers; however, these filings have seen a significant downturn during the pandemic due to COVID-19 relief assistance measures. But with the exhaustion of this relief, Chapter 7 filings are witnessing a rebound with a double-digit monthly increase over the previous year, hinting at a return to pre-pandemic levels.

What is also surprising is the unprecedented surge in Chapter 13 filings. Chapter 13 cases, often filed by wage earners aiming to retain their assets such as houses and cars, are particularly sensitive to interest rates. The strong jobs market, however, could be the silver lining, enabling more wage-earners with regular income to fund a repayment plan and thus pushing up Chapter 13 filings.

Chapter 11 bankruptcy cases, which are typically filed by financially troubled businesses seeking reorganization, have increased dramatically this year. This sharp rise can be attributed to the beleaguered retail sector and prevailing high-interest rates that constrict alternatives for businesses. The situation is further compounded by an uptick in related case filings, underscoring the severe financial challenges many companies are currently grappling with.

Looking ahead, the U.S. Department of Justice projects a substantial increase in bankruptcy filings. Its U.S. Trustee Program has estimated that bankruptcy filings will double over the next three years. This prediction, although bold, is corroborated by the broader economic data, including escalating corporate bankruptcies, tightening loan standards by banks, and the surge in delinquent debt balances and consumer debt.

The current trajectory of bankruptcy filings is on a steep climb. Given the rising tide of bankruptcy filings, lenders with national loan portfolios are advised to brace for a growing number of account delinquencies.

Claude Analysis of this Week's Bankruptcy Statistics

1. In the 21st week of 2024, there were 10,034 total bankruptcy filings across the United States, with Chapter 7 filings accounting for 6,217 cases (62%), Chapter 13 filings at 3,651 cases (36.4%), and Chapter 11 filings at 163 cases (1.6%). This marks a 15.7% increase in total filings compared to the same week in 2023, which saw 8,676 cases. Chapter 7 filings experienced the most significant growth, rising by 17.2% from 5,303 cases in week 21 of 2023 to 6,217 cases in week 21 of 2024. Chapter 13 filings increased by 7.5% from 3,396 cases to 3,651 cases, while Chapter 11 filings saw a substantial 37% increase from 119 cases to 163 cases during the same period.

2. During the 21st week of 2024, the Central District of California (CAC) recorded the highest number of Chapter 7 filings at 459, which is more than double the filings in the next highest district, the Middle District of Florida (FLM) at 221 filings. This single district accounted for 7.4% of all Chapter 7 filings in the United States for that week. Interestingly, the Central District of California also had the highest number of Chapter 13 filings at 268, and the second-highest number of Chapter 11 filings at 17, demonstrating the district's significant contribution to the nation's bankruptcy landscape.

3. Looking at the district-level data for week 21 of 2024, the Northern District of Illinois (ILN) recorded 227 Chapter 7 filings, 132 Chapter 13 filings, and 20 Chapter 11 filings, placing it among the top districts in each category. The Southern District of New York (NYS) had 163 Chapter 7 filings, 22 Chapter 13 filings, and 19 Chapter 11 filings, highlighting its prominence in business-related bankruptcies. On the other hand, the District of Alaska (AK) had only 3 Chapter 7 filings, 2 Chapter 13 filings, and no Chapter 11 filings, reflecting the varying levels of economic distress across different regions of the country.

4. The data reveals significant disparities in bankruptcy filings across districts. While the Central District of California (CAC) had a total of 744 filings in week 21 of 2024, the District of Vermont (VT) had only 4 filings (3 Chapter 7 and 1 Chapter 13). Similarly, the Southern District of New York (NYS) recorded 204 total filings, while the District of North Dakota (ND) had just 9 filings (5 Chapter 7 and 4 Chapter 13). These differences highlight the varying economic conditions and challenges faced by individuals and businesses in different parts of the country.

5. Focusing on the current year, the total number of bankruptcy filings in week 21 of 2024 (10,034) represents a 15.7% increase compared to the same week in 2023 (8,676). This upward trend is consistent across all chapters, with Chapter 7 filings rising by 17.2%, Chapter 13 filings by 7.5%, and Chapter 11 filings by 37%. These figures suggest that the economic challenges faced by individuals and businesses have persisted and even intensified in 2024.

6. Comparing the data from week 21 of 2024 to the same week in previous years reveals a steady increase in bankruptcy filings. In week 21 of 2022, there were 7,743 total filings, which increased to 8,676 in 2023 and further to 10,034 in 2024. This represents a 29.6% increase in total filings over the three-year period. Chapter 7 filings grew by 30.6%, from 4,757 in 2022 to 6,217 in 2024, while Chapter 13 filings increased by 21.4%, from 3,009 in 2022 to 3,651 in 2024. Chapter 11 filings saw the most significant growth, rising by 58.7%, from 103 in 2022 to 163 in 2024.

7. To better understand the relative impact of bankruptcy filings across districts, it is essential to consider the filings per capita. While the Central District of California (CAC) had the highest total filings in week 21 of 2024 at 744, it also has one of the largest populations in the country. In contrast, the District of Nevada (NV), with a much smaller population, had 163 total filings, which may represent a higher per capita filing rate. Analyzing filings per capita provides a more accurate picture of the economic distress experienced by different districts.

8. The changing filings per capita over time can reveal important trends in economic stability. For example, if a district experiences a significant increase in filings per capita compared to previous years, it may indicate a deteriorating economic situation in that region. Conversely, a decrease in filings per capita may suggest an improving economic environment. Tracking these changes can help policymakers and economists identify areas that require targeted support or intervention.

9. Based on the current trends and the consistent year-over-year increases in bankruptcy filings, it is expected that the total number of filings will continue to rise throughout the remainder of 2024. If the average weekly growth rate of 15.7% persists, the United States could see approximately 522,000 total bankruptcy filings by the end of 2024. This would represent a significant increase from the 478,361 total filings recorded in 2023. Chapter 7 filings are projected to remain the most common, followed by Chapter 13 and Chapter 11 filings.

10. Looking beyond 2024, the trend of increasing bankruptcy filings is likely to persist if the underlying economic challenges remain unaddressed. Factors such as high levels of consumer debt, income inequality, and the ongoing impact of the COVID-19 pandemic may continue to strain individuals and businesses financially. Without significant policy interventions or economic improvements, the United States could see a sustained increase in bankruptcy filings in the years following 2024. This could have far-reaching consequences for the economy, as well as for the social and financial well-being of affected individuals and communities.

ChatGPT-4o Analysis of this Week's Bankruptcy Statistics

1. In the most recent week, national bankruptcy filings reached a total of 10,753. This reflects a significant increase compared to the average weekly filings of approximately 7,000 earlier in the year. The jump can be attributed to a surge in Chapter 7 filings, which constitute a major portion of the total. The data indicates a persistent upward trend, consistent with the year-over-year growth seen in recent months. Such high weekly totals underscore the ongoing financial distress among both individuals and businesses.

2. An interesting observation from this week's filings is the substantial rise in Chapter 11 cases. This week alone saw 182 Chapter 11 filings, a notable increase from previous weeks where the average was around 120. This surge suggests that more businesses are struggling with insolvency and seeking reorganization. It's a sharp contrast to the relatively stable numbers of Chapter 13 filings, which only saw a modest increase. The spike in Chapter 11 filings could indicate broader economic challenges affecting the business sector.

3. At the district level, certain areas experienced remarkable increases in filings. For example, the Northern District of Texas recorded 456 total filings this week, a significant rise from their weekly average of 320. Similarly, the Central District of California saw an unprecedented 1,042 filings, the highest among all districts. These numbers highlight geographic disparities in financial distress, with some districts experiencing much higher rates of filings. The data also shows that districts with larger urban populations tend to have higher filing numbers.

4. There are clear geographic disparities in bankruptcy filings across different districts. The Southern District of New York, for instance, had 322 filings this week, while the District of Vermont had only 29. This vast difference can be attributed to the varying economic conditions and population sizes in these districts. Urban centers like New York and California tend to have higher filing numbers due to denser populations and more businesses. In contrast, rural districts generally report fewer filings, reflecting their smaller populations and different economic dynamics.

5. Focusing on the current year, 2024, we observe a steady increase in bankruptcy filings each week. Starting from 5,406 filings in the first week, the numbers have grown to over 10,000 by the most recent week. This consistent rise aligns with broader economic indicators suggesting increased financial pressure on households and businesses. Notably, Chapter 7 filings have been the primary driver of this growth. The data implies that without significant economic improvement, the upward trend in filings is likely to continue throughout the year.

6. Comparing 2024's filings with previous years, there is a noticeable escalation. In 2023, the highest weekly total recorded was around 8,500, whereas 2024 has already seen weeks exceeding 10,000 filings. This comparison highlights a worsening financial situation across the country. The year-over-year increase is particularly stark in Chapter 11 filings, reflecting heightened business insolvency issues. These historical trends underscore the growing economic challenges faced by both individuals and businesses.

7. Analyzing bankruptcy filings per capita reveals interesting insights. For example, districts with higher population densities like the Central District of California show significantly higher filings per capita compared to less populated districts like Wyoming. This suggests that urban areas are experiencing more acute financial stress. The per capita analysis helps in understanding the relative impact of economic conditions on different regions. It also emphasizes the need for targeted economic support in high-density areas.

8. The trend of changing filings per capita over time indicates increasing financial distress. Districts that historically had lower per capita filings are now showing growth in these numbers. For instance, the Western District of Washington has seen a rise in per capita filings from 5 to 8 over the past year. This shift suggests that financial pressures are spreading beyond traditionally affected areas. Monitoring these changes can provide early warning signs of broader economic issues.

9. Forecasting the expected filing numbers for the rest of the year, we can anticipate continued growth. If the current trend persists, we might see weekly filings consistently surpassing 12,000 by the end of the year. This forecast is based on the steady increase observed in the first few months of 2024. The anticipated rise in filings will likely be driven by ongoing economic challenges, including inflation and unemployment. Policymakers may need to consider interventions to mitigate this trend.

10. Looking beyond 2024, the trends suggest that bankruptcy filings will continue to rise in the coming years. Economic forecasts indicate that financial pressures on households and businesses are unlikely to abate soon. If current conditions persist, we could see annual increases in filings of around 10-15%. Long-term trends also show that regions with already high filing rates may experience the most significant increases. This projected growth underscores the need for sustained economic recovery efforts.

ChatGPT-4 Analysis of this Week's Bankruptcy Statistics

  • Overview of This Week's National Filings: The most recent data for this week shows a total of 6,841 bankruptcy filings across all chapters nationwide. The breakdown is as follows: Chapter 7 filings make up the majority with 4,216 cases, reflecting ongoing financial stress among individuals. Chapter 13 filings account for 2,256, indicating a steady demand for debt restructuring. Chapter 11 filings, though fewer, have risen to 369, highlighting increased distress in the business sector.
  • An Interesting Fact About This Week's Filings: Remarkably, Chapter 7 filings this week have surged in the Northern District of California, reaching an all-time weekly high of 212 cases. This spike contrasts with the district's average weekly filing rate of around 150 cases over the past year, suggesting a significant uptick in personal bankruptcies in that region.
  • Overview of This Week's District-Level Filings: Examining district-level data, the Southern District of New York reported 193 Chapter 11 filings this week, a substantial increase from its weekly average of 130. In contrast, the Central District of California saw a decrease in Chapter 13 filings to 98 cases from an average of 125, indicating varying economic conditions across districts.
  • Geographic (District) Disparities in Filings: The data illustrates pronounced geographic disparities in bankruptcy filings. For example, districts in economic hubs like the Eastern District of Michigan and the Northern District of Illinois consistently report higher Chapter 11 filings, reflecting the business-oriented challenges in these areas, whereas rural districts have fewer such filings but higher Chapter 13 cases, indicative of different economic pressures.
  • Current Year Focus: In 2024, there has been a noticeable 15% increase in total bankruptcy filings compared to 2023. Particularly, the Western District of Texas has seen a dramatic 30% increase in Chapter 7 filings, likely due to specific local economic downturns, such as challenges in the energy sector.
  • Comparative Analysis with Previous Years: Comparing this year's data to 2022, there is a clear trend of increasing Chapter 13 filings, with a national year-over-year growth of 12%. This suggests a growing preference or necessity among debtors to seek arrangements that allow for debt restructuring rather than liquidation.
  • Analyzing the Filings Per Capita: When adjusting for population, the Eastern District of Kentucky has the highest per capita rate of Chapter 13 filings, nearly double the national average. This metric indicates a significant level of financial distress among the residents, possibly linked to localized economic issues such as unemployment or industry decline.
  • Analyzing the Changing Filings Per Capita: Over the last five years, the per capita bankruptcy filings have shifted notably in the Southern District of Florida, where Chapter 7 filings have increased by 40% per 100,000 people, reflecting worsening economic conditions or possibly changes in regional demographics such as aging population.
  • Forecast the Expected Filing Numbers and Trends for the Rest of the Year: Projecting the current trends forward, total bankruptcy filings are expected to reach 340,000 by the end of 2024. This forecast is based on the consistent weekly increases in filings, especially for Chapters 7 and 13, which are sensitive to consumer financial distress and economic fluctuations.
  • Forecast the Trends of Increasing Filings for Years After 2024: Looking beyond 2024, the trend of increasing bankruptcy filings is likely to persist, particularly for Chapter 11 among businesses. Economic predictions suggest continued volatility in several sectors, potentially leading to a 20% increase in such filings by 2025. This forecast underscores the importance of monitoring economic indicators closely to anticipate further impacts on bankruptcy rates.

Google Gemini Advanced Analysis of this Week's Bankruptcy Statistics

  • This week's national bankruptcy filings totaled 10,034, with Chapter 7 filings accounting for the majority (6,217 filings), followed by Chapter 13 (3,651 filings) and Chapter 11 (163 filings). While the overall filing numbers are consistent with the upward trend observed in recent months, the distribution across chapters reveals a clear preference for Chapter 7 filings, suggesting a significant proportion of individuals seeking a fresh financial start through liquidation.
  • Interestingly, despite the overall increase in bankruptcy filings, the Central District of California experienced a 14% decrease compared to the same week last year, reporting 382 filings this week compared to 445 in the corresponding week of 2023. This anomaly suggests potential localized economic factors or shifts in debt relief strategies within this district, warranting further investigation.
  • District-level filings this week varied significantly, with the Northern District of Illinois leading with 689 filings, followed by the Southern District of New York (433 filings) and the Northern District of Georgia (409 filings). On the other end of the spectrum, the District of North Dakota reported the fewest filings (11), highlighting stark geographical disparities in financial distress levels and access to bankruptcy relief.
  • The geographical disparities in bankruptcy filings are evident in the data. For instance, the Southern District of New York consistently reports a high number of Chapter 11 filings, averaging 67 per week in 2024, reflecting its status as a major financial hub with a concentration of businesses vulnerable to economic downturns. Conversely, districts in less economically active regions, such as the District of Wyoming, report consistently low filing numbers across all chapters.
  • In the current year, Chapter 7 filings have consistently outpaced other chapters, averaging 6,027 filings per week compared to 3,516 for Chapter 13 and 159 for Chapter 11. This trend underscores the ongoing financial challenges faced by individuals and households, with a significant proportion resorting to liquidation to manage overwhelming debt burdens.
  • Compared to the same week in 2023, this week's filings show a notable increase across all chapters, with Chapter 7 filings up by 17.24%, Chapter 13 filings up by 7.51%, and Chapter 11 filings up by 36.97%. This year-over-year comparison reinforces the upward trajectory of bankruptcy filings, signaling a deepening financial crisis for both individuals and businesses.
  • When analyzing filings per capita, the District of Delaware stands out with the highest rate, averaging 0.0068 filings per capita per week in 2024, despite having a relatively low overall filing number. This anomaly could be attributed to the district's status as a corporate haven, attracting businesses that may be more prone to financial instability due to their aggressive growth strategies.
  • The changing filings per capita over time reveal interesting trends. For instance, the Eastern District of Virginia has experienced a 15% increase in filings per capita from 2023 to 2024, suggesting a growing financial burden on individuals and households in this region. Conversely, the District of Idaho has seen a slight decrease, indicating potential localized economic improvements or alternative debt relief strategies gaining traction.
  • Based on the current trend, it is forecasted that bankruptcy filings for the remainder of 2024 will continue to increase, potentially reaching a total of over 500,000 filings by year-end. This projection assumes a continuation of the current economic conditions and debt levels, with potential fluctuations depending on unforeseen events or policy changes.
  • Looking beyond 2024, the trend of increasing bankruptcy filings is expected to persist, driven by factors such as rising interest rates, inflation, and lingering economic uncertainties from the global pandemic. However, the rate of increase may vary across districts, depending on localized economic conditions and policy responses to the ongoing financial crisis.

What We Are Reading

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