In the 12-month period ended March 31, 1996, bankruptcy filings increased 16.8 percent compared to the same period in 1995, according to statistics released today by the Administrative Office of the U.S. Courts. Filings for the previous 12-month period ended December 31, 1995, also showed a sizable 11.3 percent increase. If this trend continues, in 1996 bankruptcy filings will break—for the first time ever—the 1 million mark. The next highest level of filings during a 12-month period occurred in 1992, when in the 12-month period ending September 30, bankruptcy filings numbered 977,478. Preliminary data for the month of April 1996 shows over 100,000 cases filed--an all time high for monthly bankruptcy filings.
A total of 980,126 bankruptcy cases were filed in federal courts during the 12-month period ended March 31, 1996. Among the U.S. district courts, the Central District of California led with 85,819 filings. The largest percentage increase was in the Eastern District of Arkansas, with a 51.4 percent increase. Among the circuits, the Ninth Circuit, which includes the state of California, had the highest number of filings at 227,211, and the Eighth Circuit showed the largest overall percentage increase in filings at 23.4 percent. All districts (with the exception of the District Court of the Virgin Islands) showed increases in bankruptcy filings, when compared to the same 12-month period in 1995.
Of the total number of bankruptcy filings for the 12-month period ended March 31, 1996, there were 665,310 Chapter 7 filings, an increase of 17 percent over the 568,565 filings in the same period in 1995. The next largest group of filings were Chapter 13 filings at 300,901, a rise of 18 percent over the same 1995 period's 255,382 filings. There were 12,901 Chapter 11 filings in this 1996 period for a drop of 8 percent from 14,055 in 1995; Chapter 12 filings rose slightly in this period, from 916 in 1995 to 988 in 1996.
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 three- to five-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 was the end of the second quarter of fiscal year 1996. In the second quarter of FY 96, 266,149 bankruptcy cases were filed in federal courts; 244,494 cases were filed in the first quarter of FY 96. Total business filings in the second quarter numbered 13,388, and non-business filings were 252,761.
| Total Filings | Chapter 7 | Chapter 11 | Chapter 12 | Chapter 13 |
|---|---|---|---|---|
| 266,149 | 182,493 | 3,290 | 315 | 80,045 |
| Total Business | Chapter 7 | Chapter 11 | Chapter 12 | Chapter 13 |
| 13,388 | 7,456 | 2,993 | 315 | 2,618 |
| Total Non-Business | Chapter 7 | Chapter 11 | Chapter 13 | |
| 252,761 | 175,037 | 297 | 77,427 |
| 3-Month Period Ending | Total Filings |
|---|---|
| MAR. 31, 1996 | 266,149 |
| DEC. 31, 1995 | 244,494 |
| SEPT. 30, 1995 | 233,593 |
| JUN. 30, 1995 | 235,302 |
| MAR. 31, 1995 | 212,626 |
| DEC. 31, 1994 | 201,618 |
| SEPT. 30,1994 | 208,187 |
| JUN. 30, 1994 | 216,213 |
| MAR. 31, 1994 | 206,565 |
| DEC. 31, 1993 | 206,570 |
| SEPT. 30, 1993 | 215,498 |
| JUN. 30, 1993 | 229,406 |
| MAR. 31, 1993 | 222,694 |
| DEC. 31, 1992 | 228,562 |
| SEPT. 30, 1992 | 236,810 |
| JUN. 30, 1992 | 250,622 |
| MAR. 31, 1992 | 252,733 |
| DEC. 31, 1991 | 234,383 |
| SEPT. 30, 1991 | 231,743 |
| JUN. 30, 1991 | 246,430 |
| MAR. 31, 1991 | 231,017 |
| DEC. 31, 1990 | 209,798 |
| SEPT. 30, 1990 | 192,555 |