Consumer Bankruptcy Filings Fall 13 Percent in First Half of 2012
Bankruptcy filings totaled 632,130 nationwide during the first six months of 2012 (Jan. 1-June 30), a 14 percent decrease from the 731,500 total filings during the same period a year ago, according to data provided by Epiq Systems, Inc.
The 601,184 total noncommercial filings for the first half of 2012 represented a 13 percent drop from the noncommercial filing total of 691,902 for the first half of 2011. Total commercial filings during the first six months of the year were 30,946, representing a 22 percent decrease from the 39,598 filings during the same period in 2011. Chapter 11 filings also fell during the first half of 2012 as the 5,313 filings represented a 12 percent decrease from the 6,070 chapter 11 filings during the first six months of 2011.
“We are on pace for perhaps the lowest total new bankruptcies since before the financial crisis in 2008,” said American Bankruptcy Institute Executive Director Samuel J. Gerdano. “With sustained low interest rates and weak consumer spending, we expect bankruptcies to stay at relatively low levels through the end of 2012.”
The 99,057 total bankruptcy filings for the month of June represented an 18 percent decrease compared to the 120,698 filings in June 2011. The 94,437 total noncommercial filings for June represented a 17 percent drop from the June 2011 noncommercial filing total of 114,162. Total commercial filings for June 2012 were 4,620, representing a 29 percent decrease from the 6,536 filings during the same period in 2011. Chapter 11 filings registered a 28 percent drop as the 1,000 chapter 11 filings in June 2011 fell to 718 in June 2012.
Continuing the Discussion