By Les Shaver
Chapter 11 filings are increasing at an alarming rate.
In September, there were 747 new commercial Chapter 11 filings, which was a 78% year-over-year increase, according to Epiq's September 2020 bankruptcy filing statistics from its AACER business. In the first three quarters of 2020 there have been 5,529 Chapter 11 commercial filings, which is a 33% increase over the same period last year.
“After a slower August, we see an increase in Chapter 11 filings in September both month over month and year over year,” said Deirdre O'Connor, managing director of corporate restructuring at Epiq in prepared remarks. “These commercial filings are primarily small businesses that do not have access to capital or stimulus. Unfortunately, those bankruptcies will continue to rise in the current economic environment.” Read more.