According to the latest AIS Insight Report, March filings totaled 36,015, up 33.40% from the previous month and down 17.11% from March 2022 (Figure 1). Although this is the lowest number of total filings for the month of March in over 20 years, March 2022 marks the largest number of filings since April 2021.
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Over the past two years, we’ve been watching the activity of Chapter 7 and Chapter 13 filings closely. Our March analysis reveals the largest number of Chapter 7 filings since June 2021 and the largest number of Chapter 13 filings since March 2020. Chapter 7 filings totaled 22,676, showing a 41.27% increase from last month and a 29.77% decrease from March 2021. Chapter 13 filings totaled 12,933, showing a 21.22% increase from the previous month and a 21.61% increase from March 2021.
On March 14th, legislation was introduced in the Senate that would expand the eligibility requirements for Chapter 13. This is a very significant change in the law and should increase Chapter 13 filings. We’ll continue to provide updates on when the bill passes the senate and house.
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For the month of March 2022, Chapter 11 filings totaled 381, revealing a 43.23% increase from the previous month and a 15.71% decrease from March 2021. Chapter 11, Subchapter V filings totaled 185, revealing a 45.67% increase from the previous month and a 4.15% decrease from March 2021.
The legislation introduced in the Senate on March 14th also makes the increased debt limit permanent for Subchapter V (small business bankruptcy), which is due to expire on March 27, 2022. As a result, we expect Congress will attempt to pass this bill soon to avoid a lapse in the small business provision.
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The highest percentage of bankruptcies for March 2022 came from the South (East) (28%), followed by North Central (East) (21%), South (West) (15%), Pacific (12%), Northeast (12%), North Central (West) (6%), and Mountain (6%) regions of the country (Figure 10).
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To download the March Insight Report, click here.