2024 Bankruptcies Hit 4-Year High, December Filings up 11%
According to data supplied by AIS, debtors filed more than 38,000 new petitions in December, ending the year with a total of 508,778 bankruptcy filings - 14.28% higher than 2023. That is the highest annual total in four years. December bankruptcies rose 10.57% from the same period last year. Chapter 7s (+15.47%) and chapter 11s (+20.85%) clocked double-digit increases, while chapter 13s (+3.05%) maintained a slower rate of increase.
Sign Up to receive monthly Bankruptcy Insights from AIS.
VIDEO: Recap and Analysis of December Filings Data
Chapter 7 filings continued their brisk pace upward by registering a 15.47% rise over December 2023. Chapter 7s have registered a double-digit increase in ten out of the last 12 months. Chapter 13 cases, in which individuals retain most of their property in return for repaying at least part of their pre-petition debt out of current income, rose by an anemic 3.05%. For 18 consecutive months, the rate of increase in chapter 13 filings has been below the pace of chapter 7s. The rate of chapter 13 filings levelled off considerably throughout 2024 compared to the previous two years.. .
View more insights, case studies, and commentary from AIS:
.jpg?width=900&height=600&name=Video%20Icon%208-2%20(1).jpg "Video Icon")
AIS warrants that it employs all reasonable endeavours to ensure that the supplied statistical reports are substantially complete and free of errors or defects. The user acknowledges that all information contained herein is derived from public record data and from time to time, errors may occur. InSight is a proprietary analytical report produced monthly by AIS. The supplied information will not be disclosed, recompiled, sold or traded, in whole or in part, to third parties unless prior written consent is obtained. AIS assumes no responsibility or liability for any decisions made as a result of using this report.