Commercial chapter 11 filings rise in first half of 2020 while total filings drop

Commercial chapter 11 filing totals during the first six months of the year (Jan. 1-June 30) increased by 26 percent to 3,604 from the 2,855 total filings during the same period in 2019 according to data provided by Epiq Global, reports American Bankruptcy Institute.

Bankruptcy filing totals also decreased to 298,080 during the first six months of 2020, a 23 percent decrease from the 388,594 total commercial filings during the same period a year ago.

Data from Epiq Global also showed that total consumer filings registered a 24 percent decrease, as the 280,649 filings during the first half of 2020 were down from the 368,953 filings during the first six months of 2019.

The 17,431 total commercial filings for the first half of 2020 represented an 11 percent drop from the commercial filing total of 19,641 for the first half of 2019.

“Businesses and consumers continue to navigate a challenging economic course as a result of the financial crisis due to the COVID-19 pandemic,” Executive Director of American Bankruptcy Institute, Amy Quackenboss, said. “As government lifelines to help stabilize the economy begin to expire, bankruptcy provides a shield for households and companies facing intensifying financial distress. We anticipate filings to begin increasing as a result.”