Epiq, a global technology-enabled services leader to the legal services industry and corporations, released its January 2021 bankruptcy filing statistics from its AACER bankruptcy information services business. January experienced the lowest monthly number of new bankruptcy filings across all chapters since February 2006 (26,617 filings) with only 32,298 filings.
The continued slide represents a decrease of 6% over December 2020 filings, and a 44% decrease over January 2020 filings where there were 58,161 new cases. Commercial filings across all chapters fell to 2,124 new cases, a 7% drop over December 2020 and a 42% drop over January 2020, which had a total of 3,560 new cases.
“Out of court solutions, available liquidity, and general uncertainty has caused a significant pause in Chapter 11 filings this past month,” said Deirdre O’Connor, senior managing director of corporate restructuring at Epiq. “We appear to be suspended in an air bubble at the moment.”
“The new year data continues to show extreme softness in new U.S. bankruptcy filings” said Chris Kruse, senior vice president of Epiq AACER. “The optimism around a new political administration and potential new government relief for consumers has kept new filings historically low.”
Chapter 13 non-commercial filings are down 4% over last month with only 8,972 new cases. Chapter 7 non-commercial filings are also down 6.5% in January 2021 with only 21,225 new cases. With unemployment rates in December holding steady at 6.7%, pressure on consumers has stabilized and renewed confidence on stimulus aid is rising.
“We continue to expect new filings will grow substantially in the second-half of 2021, notwithstanding any likely short-term stimulus,” said Kruse.
About Epiq AACER
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Epiq, a global technology-enabled services leader to the legal services industry and corporations, takes on large-scale, increasingly complex tasks for corporate counsel, law firms, and business professionals with efficiency, clarity, and confidence. Clients rely on Epiq to streamline the administration of business operations, class action and mass tort, court reporting, eDiscovery, regulatory, compliance, restructuring, and bankruptcy matters. Epiq subject-matter experts and technologies create efficiency through expertise and deliver confidence to high-performing clients around the world. Learn more at https://www.epiqglobal.com.
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