Administrative Office of the U.S. Courts

Press Release Date: June 9, 1997

Bankruptcy Filings Continue Climb in 2nd Quarter 1997

In the twelve-month period ending March 31, 1997, bankruptcy filings in federal courts nationwide increased 27.2 percent over the same period in 1996, according to data released today by the Administrative Office of the U.S. Courts. This follows a 1996 calendar year (a period ended December 31, 1996) in which filings also had increased 27.2 percent. Filings in the 12-month period ending March 31, 1997, totaled 1,247,065, an all-time high. In comparison, 980,126 bankruptcies were filed for the 12-month period ended March 31, 1996. Bankruptcy filings topped the one million mark for the first time during the 12-month period ending June 30, 1996. The number of bankruptcies filed during the second quarter (January 1, 1997 - March 31, 1997) of the Judiciary's fiscal year 1997 totaled 335,073, the highest number ever filed for a quarter. Filings in the first quarter of fiscal year 1997 (October 1-December 31, 1996), a total of 311,131, had been the previous record high. The number of bankruptcy filings has increased the workload of federal bankruptcy courts. While cases terminated between March 31, 1996, and March 31, 1997, rose 17 percent, the number of cases pending increased 13.6 percent. At its March meeting, the Judicial Conference of the United States, the policy-making body of the Judiciary, voted to transmit to Congress proposed legislation to create 18 additional bankruptcy judgeships. Among the U.S. bankruptcy courts, the Central District of California remained the district reporting the largest number of filings in the country with 108,031, a 25.9 percent increase over the same 12-month period in 1996. The Northern and Eastern Districts of California, the Northern District of Illinois, the District of New Jersey, the Northern District of Georgia, and the Middle District of Florida all showed over 30,000 bankruptcy filings in this period. All districts, except for the District of the Northern Mariana Islands, showed double-digit percent increases in filings. Of the total number of bankruptcy filings for the 12-month period ending March 31, 1997, there were 862,136 Chapter 7 filings, an increase of 29.6 percent over the 665,310 filings in the same period in 1996. The next largest group of filings were Chapter 13 filings at 372,369, a 23.8 percent increase over the 300,901 filings in the same period in 1996. Chapter 11 filings dropped to 11,472 in the 12-month period ended March 31, 1997, down from 12,901 in the same period in 1996. Chapter 12 filings rose, from 988 in 1996 to 1,050 in 1997. Business filings totaled 54,008. Non-business filings totaled 1,193,057. Chapter 7 is designed to allow individuals to keep certain exempt property while the remaining property is sold to repay creditors. Under Chapter 13 bankruptcy, creditors may be repaid in installments, in full or in part, over a 3- to 5-year period. Chapter 11 provides for a business to continue operations while formulating a plan to repay its creditors. Chapter 12 is designed to meet the needs of financially distressed family farmers. For the Judiciary, March 31, 1997, is the end of the second quarter of fiscal year 1997. In the second quarter, there were 335,073 bankruptcy filings, compared to the 266,149 bankruptcy cases filed during the same quarter last year. Total business filings in the second quarter numbered 13,831 in 1997 and 13,388 in 1996. Total non-business filings for the second quarter of 1997 were 321,242. For the second quarter of 1996, non-business filings totaled 252,761. For a breakdown of the latest data on bankruptcy filings click here.

Business and Nonbusiness Bankruptcy Cases Filed, By Chapter

During the Three-Month Period Ended March 31, 1997

Quarterly Bankruptcy Filings*

For additional information on this or other press releases, please contact the Public Information Officer at the Administrative Office of the U.S. Courts, 202/273-0107 or e-mail your questions to the webmaster@teo.uscourts.gov.