September Bankruptcy Filings Increase for First Time Since 2009

According to the latest AIS Insight Report, September bankruptcies totaled to 39,699 reflecting a slight uptick from the previous month (Figure 1). This marks the first increase from August to September since 2009. However, filings were still down 35% from September 2019. A year-over-year analysis indicated that total Chapter 11 filings increased by 73%. This is by far the highest year-over-year monthly increase in 2020.

Over the past five months, we’ve been monitoring the activity of Chapter 7 and Chapter 13 bankruptcy filings. September revealed that filings are still well below the monthly averages (Figure 1). When compared to total filings, we witnessed a 6% increase in Chapter 13 filings (Figure 2). Conversely, Chapter 7 bankruptcies accounted for 71% of all filings, marking a 1% decrease from August (Figure 2 & 3). 

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September Chapter 11 bankruptcies increased by 73% as compared to September 2019 (Figure 4). Chapter 11 bankruptcies totaled to 801 in September 2020 compared to a total of 461 in September 2019 (Figure 4). In a month-over-month analysis, we observed Chapter 11 filings have increased by 36% and Chapter 11, Subchapter V filings increased by 11% (Figure 4).

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The highest percentage of bankruptcies for September 2020 came from the South (East) (27%) followed by North Central (East) (20%), Pacific (15%), South (West) (13%), Northeast (12%), Mountain (7%) and North Central (West) (6%) regions of the country (Figure 7).

Figure 7

As mentioned last month, data confirms that 2020 continues to be an unusual year (Figure 8). A five-year analysis of bankruptcy filings shows a major trend deviation. We will monitor the effects of stimulus checks and forbearance and moratorium programs and provide critical insights. 

Figure 8

AIS Insight is a proprietary report created by AIS using data derived solely from information obtained from the Federal Bankruptcy Court System and the latest in bankruptcy analytical tools.

To download the full August Insight Report, click here.