« Venue (Again) | Main | Central Bank Alter-Ego Theory Rejected »

Yep, 800,000 Bankruptcy Filings This Year

posted by Bob Lawless

My blogging has been light the past few months as we have been working on the eighth edition of what will now be LoPucki, Warren & Lawless, Secured Transactions: A Systems Approach. For you secured transactions teachers out there, we have returned a first set of page proofs and everything looks on track for publication later this year well in advance of the spring semester.

To get back into the blogging swing of things, I go to where else . . . bankruptcy filing data. Back in January, I predicted that total 2015 bankruptcy filings for the U.S. would be "somewhere around 800,000." Revisiting that prediction, the numbers seem right on track to meet it.

According to data from Epiq Systems, there have been just short of 495,000 bankruptcy filings through July 31. In recent years, the bankruptcy filings for the first seven months of the year have been 61.2% of the annual total. Extrapolating, that would put us at 808,000 filings for the year. That would be a decline of 11.2% for 2015, on the heels of a decline of 11.8% in the prior year.

Population-adjusted, the bankruptcy filing is at historic lows. On an annual basis, there are now 2.65 filings per 1,000 persons. Ignoring the statistical gyrations around the enactment of the 2005 bankruptcy law, this is the lowest it has been in 26 years.

For those who do not remember those gyrations, a swell of filers rushed to beat the law's effective date, and then filing rates plummeted as everyone who needed to file already had done so. But, even when filing rates were considered to have crashed back in 2006, the annual filing rate was still around 2.00, not that far off where the rate is today. In contrast, the annual filing rate in July 2010 was 5.23 per 1,000.

There now have been 57 straight months of year-over-year declines in the bankruptcy filing rate. The last two months have seen smaller declines (9.9% and 7.4%) than the double-digit decreases we have been seeing. It is probably too early to say whether these two months represent a longer-term trend toward a decrease in the rate of decrease or even a flattening out of the curve.

Comments

Filing are up pretty significantly in the third quarter over the same time last year.

The comments to this entry are closed.

Regulars

Occasionals

Current Guests

Follow Us On Twitter

Like Us on Facebook

  • Like Us on Facebook

    By "Liking" us on Facebook, you will receive excerpts of our posts in your Facebook news feed. (If you change your mind, you can undo it later.) Note that this is different than "Liking" our Facebook page, although a "Like" in either place will get you Credit Slips post on your Facebook news feed.

News Feed

Categories

Bankr-L

  • As a public service, the University of Illinois College of Law operates Bankr-L, an e-mail list on which bankruptcy professionals can exchange information. Bankr-L is administered by one of the Credit Slips bloggers, Professor Robert M. Lawless of the University of Illinois. Although Bankr-L is a free service, membership is limited only to persons with a professional connection to the bankruptcy field (e.g., lawyer, accountant, academic, judge). To request a subscription on Bankr-L, click here to visit the page for the list and then click on the link for "Subscribe." After completing the information there, please also send an e-mail to Professor Lawless (rlawless@illinois.edu) with a short description of your professional connection to bankruptcy. A link to a URL with a professional bio or other identifying information would be great.

OTHER STUFF

Powered by TypePad