Commercial bankruptcy filings rise 26%

Total commercial bankruptcy filings were up by 26% in 2016, according to analysis from the American Bankruptcy Institute (ABI), which also shows the overall level of bankruptcy filings fell by 6%.

Total commercial filings during calendar year 2016 were 37,771, according to data provided by Epiq Systems. There were 5,438 commercial chapter 11s filings during the period January 1 to December 31, a 2% increase over the 5,313 commercial chapter 11s filed the previous year. Total bankruptcy filings decreased slightly to 771,894 nationwide for calendar year 2016.

“While commercial filings increased last year, total filings fell for a seventh consecutive year and bankruptcies decreased to their lowest number recorded since 2006,” said ABI executive director Samuel Gerdano.

“As the Fed raises rates in 2017 and the cost of borrowing increases, more debt-burdened consumers and businesses may seek the financial shelter of bankruptcy,” he warned.

The 56,394 total bankruptcy filings for the month of December represented a 5% increase compared to the 53,844 filings in December 2015. The 2,911 total commercial filings represented a 9% increase from the 2,674 total commercial filings during the same period in 2015. Average total filings per day in December 2016 were 2,685, marking a 10% rise from the 2,447 total daily filings in December 2015.