November Bankruptcy Filings Down 12 Percent over Previous Year

Total bankruptcy filings in the U.S. for November 2012 decreased 12 percent compared to the previous year, according to data provided last week by Epiq Systems, Inc. to the American Bankruptcy Institute (ABI).

November 2012 bankruptcy filings totaled 86,946, down from the 98,534 filings registered in November 2011. Total commercial filings for November 2012 were 4,199, representing a 19 percent decrease from the 5,216 filings during the same period in 2011. The 82,747 total noncommercial filings for November represented an 11 percent drop from the November 2011 noncommercial filing total of 93,318.

While other filing categories experienced decreases, the November 2012 commercial chapter 11 filings registered increases in year-over and previous-month comparisons. The 664 commercial chapter 11 filings in November 2012 were a 10 percent increase over the 601 commercial chapter 11 filings in November 2011. The November total commercial chapter 11 filing total also represented a 23 percent increase over the October 2012 total of 542.

“November continued the trend of declining bankruptcies in the wake of a sustained drop in consumer spending on credit,” said ABI Executive Director Samuel J. Gerdano. “We are on pace for the lowest total new bankruptcies since before the financial crisis in 2008.”

Total, commercial and consumer bankruptcy filings in November also represented decreases from October. Total November filings were down 14 percent from the October’s total of 101,307. Commercial filings decreased 13 percent in November from the October total of 4,800, and noncommercial filings decreased 14 percent from the October total of 96,507.

The average nationwide per capita bankruptcy-filing rate through the first 11 calendar months of 2012 (Jan. 1-Nov. 30) was 3.91 (total filings per 1,000 per population). Average total filings per day in November 2012 were 2,898, a 12 percent decrease from the 3,285 total daily filings in November 2011.