May 14th, 2020
APRIL INSIGHT REPORT
The AIS Insight Report is a proprietary report created by AIS using data derived sole from information obtained by the Federal Bankruptcy Court System and the latest in bankruptcy analytical tools.
AIS data shows April bankruptcy filings have decreased 46%, from bankruptcies filed in the same month last year. Bankruptcy filings totaled to 38,421 in April 2020, whereas the total number was 71,284 in April 2019 (Figure 1). However, an increase of 28% was recorded in commercial chapter 11 filings, which rose from 462 filings in April 2019 to 592 in April 2020 (Figure 3).
Comparing April’s bankruptcy filings with those filed in March 2020, there was a 39% decrease; the number of filings reached down to 38, 421 from 62,832 (Figures 1 and 2). On the contrary, the total commercial chapter 11 bankruptcies saw a decrease of 1% from 598 in March 2020 to 592 in April 2020 (Figure 3).
The highest percentage of bankruptcies for April 2020 came from the South (East) (26%) followed by North Central (East) (21%), South (West)(15%), Pacific (13%), Northeast (11 %) and Mountain (7%) regions of the country (Figure 4).
This is now the second consecutive month where we have seen a significant decrease in filings from 2019 to 2020. The dip in bankruptcy filings during the second quarter are attributed to the COVID-19 shelter in place initiatives throughout the United States. As these precautions are gradually lifted, a backlog of bankruptcies are expected to follow.
To download the full April Insight Report, click here.