U.S. bankruptcy filings drop 24 percent year-over-year

Total filings dropped by 24 percent in 2021 from 2020, according to data from the American Bankruptcy Institute. The decrease is credited to stabilization measures put in place in response to COVID-19.

According to data provided by Epiq, total filings fell from 529,106 in 2020 to 401,291 filings during calendar year 2021. Annual bankruptcy filings last registered a similar total in 1984, with 348,521 total filings. Total consumer filings were 378,952 nationwide for calendar year 2021 (Jan. 1-Dec. 31), 24 percent fewer than the 496,589 total filings during 2020.

The 2021 consumer filing total is the lowest since the 341,233 filings registered in 1985. Commercial filings also declined, as the 22,339 business filings in calendar year 2021 represented a 31 percent drop from the 32,517 recorded in calendar year 2020.

Commercial chapter 11 filings registered the largest percentage decrease during calendar year 2021, as the total of 3,724 was 48 percent less than the 7,129 chapter 11 filings recorded during calendar year 2020.