With the 2017 calendar year behind us and already a few months deep into the 2018 fiscal year, many statistics in regards to businesses are being released. The American Bankruptcy Institute recently released findings that there was a significant increase in the number of commercial bankruptcy filings that took place in 2017. Overall, there were 5,744 commercial chapter 11 filings in 2017. This is up 6 percent from 2016’s numbers, which had only 5,447 filings for chapter 11. In addition, there was a dramatic difference in the number of chapter 11 filings when comparing December 2016’s numbers with those reported in December 2017. In December 2016, there were only 337 chapter 11 filings, while in the same month one year later, there were 699. This steep rise is a 107 percent increase.
It is important to point out that although businesses filed for bankruptcy at an increased rate, consumer bankruptcy decreased by 1 percent overall since 2016. Though 1 percent doesn’t sound like very much, it does account for 5,516 filings. In 2016, there were 733,902 noncommercial filings and in 2017, there were 728,386.
Also released this week is a list of major commercial businesses that are expected to file for bankruptcy in 2018. These include the accessories store Charming Charlie (who filed this week), J Crew, Charlotte Russe, Sears Holdings, and more. It will be interesting to see what the future holds for these businesses.
If you require legal assistance for a bankruptcy matter, contact our firm today.
If you require the services of an experienced bankruptcy attorney, contact the Law Offices of Allen A. Kolber, Esq.today to schedule a consultation and discuss your options.