CLLA Update-Annual Report Shows Bankruptcies down 13 Percent in 2014
Sharon Edmondson, Washington Legislative Team Member | April 08, 2015
Bankruptcy petition filings decreased 13 percent to 963,739 for the fiscal year ending Sept. 30, 2014, according to the 2014 Annual Report of the Director on the Judicial Business of the U.S. Courts released March 10 by the Administrative Office of the United States Courts (AOUSC). This is the lowest total since 2007, according to the report.
Breakdown by Chapter
Consumer or non-business petitions dropped 13 percent, and business petitions fell 19 percent, the report states.
According to the report, filings under Chapter 7 fell 15 percent to 642,366, and constituted 67 percent of all filings, down from 68 percent in 2013.
Non-business Chapter 7 filings, which were 97 percent of all Chapter 7 filings, also fell 15 percent and amounted to 67 percent of all non-business filings, down from 68 percent in 2013.
Business Chapter 7 petitions fell 19 percent and accounted for 67 percent of all business filings, which was the same in 2013.
Filings under Chapter 13 decreased 9 percent to 313,262, according to the report. These petitions equaled 33 percent of all filings, up from 31 percent in 2013. The 310,914 non-business Chapter 13 petitions, a decline of 9 percent from 2013, accounted for 33 percent of all non-business petitions, up from 32 percent in 2013, the report states.
The 2,348 business Chapter 13 petitions, a drop of 17 percent from 2013, represented 8 percent of all business filings.
Chapter 11 filings declined 20 percent to 7,658. Chapter 11 cases, which typically require more court resources than Chapter 7 or 13 cases, accounted for 1 percent of all filings.
The 6,504 business Chapter 11 petitions accounted for 23 percent of all business filings, which is the same as in 2013.