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Total weekly bankruptcy filings hit 15-year low

By Madison Parry

Compared to the same time last year, bankruptcy filings dropped significantly – by 44.5 percent – for the week ending Nov. 29. Although filings were anticipated to be low due to the Thanksgiving holiday, the week marked the lowest filing total in nearly 15 years.

Of the many economic surprises to come out of 2020, a positive report has recently popped up concerning bankruptcy filings.

According to a Weekly Bankruptcy Analysis report by the American Bankruptcy Institute, total bankruptcy filings were down by 44.5 percent for the week ending Nov. 29 compared to one year prior.

While the number of filings typically decrease during the week of Thanksgiving, the report revealed last week’s significant drop to hold the lowest weekly filing total in nearly 15 years. The last time filings were recorded to be this low was the week ending Jan. 28, 2006. 

Separated by case type, the report noted the number of filings for Chapters 7, 11 and 13 bankruptcy, as well as a category for other cases which includes Chapters 9, 12 and 15.

From Nov. 16, 2020 through Nov. 22, 2020, the total number of bankruptcy filings recorded was 8,564. Percent change from the same week in 2019 was -41.4 percent.

Total Chapter 7 filings was 6,035 with a yearly percent change of -34.3 percent, Chapter 11 totaled 109 filings with a -6.0 percent change, and Chapter 13 filings totaled 2,410 with a -54.6 percent change.

The largest percentage decline was in Chapter 13 filings, down by about 55 percent from last year, according to the report. Since the start of COVID-19, Chapter 13 filings have fallen by about 56 percent.