Total commercial filings during calendar year 2016 (January 1 - December 31) were 37,771, a 26 percent increase from the 29,920 filings for 2015, according to data provided by Epiq Systems, Inc. There were 5,438 commercial chapter 11 filings during calendar year 2016, a 2 percent increase over the 5,313 commercial chapter 11 filings filed the previous year. Total bankruptcy filings decreased slightly to 771,894 nationwide for 2016, 6 percent less than the 819,431 total filings during 2015.
The 2017 business bankruptcies filed are not exceedingly different than prior periods so trade creditors would be sensible to watch changes in payment patterns and where you would notice any red flags. Ask for a detailed explanation from the customer’s controller or CFO and reduce the outstanding A/R as much as achievable. You should request a deposit that is equal to a month of billings, a financial statement, a guaranty by the principal, or other form of collateral to protect your vulnerable Accounts Receivable. Your optimal plan would be to intercept damaging debt and take the precautions to protect your enterprise.
The 56,394 total bankruptcy filings for the month of December represented a 5 percent increase compared to the 53,844 filings in December 2015. The 2,911 total commercial filings showed a 9 percent increase from the 2,674 total commercial filings during the same period in 2015. Conversely, the 333 commercial chapter 11 filings in December 2016 were 17 percent lower than the 399 filings in December 2015.
The average nationwide per capita bankruptcy filing rate for 2016 decreased to 2.48 (total filings per 1,000 per population) from the 2.63 rate during 2015.
States with the highest per capita filing rate through 2016 were:
1) Tennessee ~ 5.57
2) Alabama ~ 5.48
3) Georgia ~ 4.75
4) Utah ~ 4.09
5) Illinois ~ 4.08
ABI has partnered with Epiq Systems, Inc. in order to provide the most current bankruptcy filing data for analysts, researchers and members of the news media. Epiq Systems is a leading provider of managed technology for the global legal profession.
The American Bankruptcy Institute is the largest multi-disciplinary, nonpartisan organization dedicated to research and education on matters related to insolvency. ABI was founded in 1982 to provide Congress and the public with unbiased analysis of bankruptcy issues. The ABI membership includes attorneys, accountants, bankers, judges, professors, lenders, turnaround specialists and other bankruptcy professionals, providing a forum for the exchange of ideas and information.
Epiq Systems is a leading provider of managed technology for the global legal profession. Epiq Systems offers innovative technology solutions for electronic discovery, document review, legal notification, claims administration and controlled disbursement of funds. Epiq System’s clients include leading law firms, corporate legal departments, bankruptcy trustees, government agencies, mortgage processors, financial institutions and other professional advisors who require innovative technology, responsive service and expertise.
Epiq Systems: http://www.epiqsystems.com/the-epiq-difference/about-epiq