Bankruptcy Filings Hit 20-Year Low for Month of June

According to the latest AIS Insight Report, June bankruptcy filings totaled 34,269 (Figure 1). This reflects a slight decrease (1.45%) from the previous month and a 19.22% decrease compared to June 2020. Similar to May, our most recent report reveals the lowest filing totals for the month of June in more than 20 years. Our analysis also shows that year-to-date filings (216,995) mark the lowest January-June total in over two decades (Figure 2).

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Our analysis of Chapter 7 and Chapter 13 bankruptcies reveals that numbers continue to drop below historical averages (Figure 4). Chapter 7 filings totaled 24,801 marking a 4% decrease compared to May 2021 and a 23% decrease from June 2020 (Figure 4). Chapter 13 filings totaled 9,054, marking a 7% increase compared to May 2021 and a 4% decrease from June 2020 (Figure 4). What’s most interesting is that similar to June 2020, Chapter 7 bankruptcies accounted for 72% of all filings in June 2021. Chapter 13 filings remain a small percentage of total bankruptcies, accounting for a total of 26% in June 2021. Pre-pandemic data shows Chapter 13 filings amounted to 36% of total bankruptcies in 2019.

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For the month of June 2021, Chapter 11 filings totaled 392 (Figure 7). When compared to May 2021, we observed a 27% increase (Figure 7). However, when comparing Chapter 11s to June 2020, we observed a 40% decrease (Figures 7 & 8). Chapter 11, Subchapter V filings totaled 116, revealing a 1% increase from May 2021 and a 12% decrease from June 2020 (Figure 7 & 9).

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The highest percentage of bankruptcies for June 2021 came from the South (East) (27%), followed by North Central (East) (20%), Pacific (15%), South (West) (14%), Northeast (11%), Mountain (7%) and North Central (West) (6%) regions of the country (Figure 10).

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To download the June Insight Report, click here.