According to data just released1, there was a marked increase in bankruptcy filings for the month of January 2023.
Some key statistics of note:
- January 2023 saw a 20% increase in individual filings as compared to January 2022 (29,545 in January 2023 vs. 24,703 in January 2022)
- January 2023 also saw a 19% increase in total bankruptcy filings when compared with January 2022 (31,087 in January 2023 vs 26,215 in January 2022)
- Chapter 13 filings increased 32% from January 2022 to January 2023
- Chapter 13 filings also increased 10% from December 2022 to January 2023, and overall filings increased 5% during that same timeframe
As has been well-documented, inflationary pressures and interest rate increases continue to impact consumers nationwide. Whether this most recent data suggests a tipping point for bankruptcy filings moving forward in 2023 remains to be seen.
Our team is constantly monitoring this issue. If you have questions or want to connect, please get in touch with shareholder and Bankruptcy Group chair
Scott Fink at any time.
This blog is not a solicitation for business and it is not intended to constitute legal advice on specific matters, create an attorney-client relationship or be legally binding in any way.
1 American Bankruptcy Institute, Daily Brief, February 3, 2023, data provided by Epiq Bankruptcy.