02 Apr 2013

2012 US Bankruptcy Filings Continue Downward Trend

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Industry Update:

2012 US Bankruptcy Filings Continue Downward Trend

The 1,261,140 bankruptcy petitions filed in 2012 represent a 14 percent decline from the previous year’s total of 1,467,221 and continue the downward trend since the high in 2010 when individuals and businesses filed1,596,355 petitions.

Compared to 2011, Petitions filed under Chapter 7 in 2012 decreased by 16 percent to 874,337. Non-business chapter 7 petitions also fell 16 percent to 845,470, and business chapter 7 petitions declined 18 percent. Chapter 7 petitions accounted for 69 percent of all filings in 2012, down from 71 percent in 2011. Chapter 7 petitions also constituted 69 percent of both business filings and non-business filings, down from 70 percent and 71 percent, respectively, in 2011.

ch7Chapter 11 filings declined 12 percent to 10,597. Chapter 11 cases accounted for 1 percent of all bankruptcy filings, the same as in 2011.

ch11Although bankruptcy petitions declined overall, the rates at which they dropped varied significantly in different geographic regions. For the second consecutive year, all 12 circuits reported fewer filings, but decreases ranged from 20 percent in the Ninth Circuit to 9 percent in the Fifth and Seventh Circuits. The Ninth Circuit, which reported the smallest percentage decline in filings in 2011, had the largest percentage decline in filings in 2012.

For the full article, please click here to visit the U.S. Bankruptcy Courts website.