The number of bankruptcy petitions filed continues to rise, according to data released today by the Administrative Office of the U.S. Courts. The filings climbed 25.9 percent to 1,111,964 in the twelve-month period ending September 30, 1996, reaching an all-time high. In comparison, for the same twelve-month period last year, 883,457 bankruptcies were filed. Filings topped the one million mark (1,042,110) for the first time during the twelve-month period ending June 30,1996. In addition, the number of bankruptcies filed during the final quarter of fiscal year 1996 (July 1-September 30)—303,309—represents yet another record-breaking quarter.
Among the U.S. bankruptcy courts, the Central District of California remained the district reporting the largest number of filings in the country with 97,311. The Northern District 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. The Eastern District of California neared that mark.
Of the total number of bankruptcy filings for the 12-month period ending September 30, 1996, there were 761,652 Chapter 7 filings, an increase of 27.3 percent over the 598,250 filings in the same period in 1995. The next largest group of filings were Chapter 13 filings at 336,615, a rise of 23.9 percent over the 271,650 filings in the same period in 1995. Chapter 11 filings remained relatively stable, dropping from 12,639 in 1995 to 12,554 in 1996. Chapter 12 filings rose in this period, from 883 in 1995 to 1,096 in 1996. Business filings totaled 53,520. Non-business filings totaled 1,058,444.
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, September 30, 1996, was the end of the fourth quarter of fiscal year 1996. In the fourth quarter of FY 96, there were 303,309 bankruptcy cases filed, up from the 297,162 bankruptcy cases filed in the third quarter, 266,149 in the second quarter, and 244,494 cases filed in the first quarter of FY 96. Total business filings in the fourth quarter numbered 13,198, up from the 12,648 cases filed in the same quarter last year. Total non-business filings for the fourth quarter were 290,111.
| Total Filings | Chapter 7 | Chapter 11 | Chapter 12 | Chapter 13 |
|---|---|---|---|---|
| 303,309 | 206,158 | 2,771 | 229 | 94,134 |
| Total Business | Chapter 7 | Chapter 11 | Chapter 12 | Chapter 13 |
| 13,198 | 7,618 | 2,492 | 229 | 2,842 |
| Total Non-Business | Chapter 7 | Chapter 11 | Chapter 13 | |
| 290,111 | 198,540 | 279 | 91,292 |
| 3-Month Period Ending | Total Filings |
|---|---|
| SEPT. 30, 1996 | 303,309 |
| JUN. 31, 1996 | 297,162 |
| 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 |
For additional information on this or other press releases, please contact the Public Information Officer at the Administrative Office of the U.S. Courts, 202/273-1120 or e-mail your questions to the webmaster@teo.uscourts.gov.