Commercial Chapter 11 bankruptcies soar 78%
At least 20 freight companies filed for Chapter 11 in Q2
U.S. commercial Chapter 11 bankruptcy filings surged 78% year over year to 911 in July.
Overall commercial bankruptcy filings reached 2,997 for the month, up 26% YoY, according to an Aug. 5 report by legal and compliance services platform Epiq. Total bankruptcy filings jumped 12% YoY to 49,614 in July.
Month over month, commercial Chapter 11 were up 46% in July, and total commercial bankruptcies increased 15%.
“Businesses and consumers are increasingly turning to bankruptcy amid the continued economic strains of elevated prices, higher borrowing costs and uncertain geopolitical events,” Amy Quackenboss, executive director of the American Bankruptcy Institute, stated in the report.
The increase comes on the heels of at least 20 freight companies filing for Chapter 11 in the second quarter. Some equipment lenders are claiming roughly $1 million or more in unsecured funds.
Quackenboss highlighted federal officials’ efforts to reinstate enhanced debt limits for Subchapter V and Chapter 13 bankruptcies, which expired last year. Lawmakers discussed the issue during a July 15 hearing on potential bankruptcy reforms, according to the release.
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