For the fiscal year that ended on September 30, 1995, bankruptcy filings in federal courts increased when compared to the same 12-month period in 1994. According to statistics released by the Administrative Office of the U.S. Courts, 883,457 bankruptcy cases were filed in federal bankrupty court in FY 95 for a 5.5 percent increase over FY 1994, when 837,797 cases were filed.
In the three month period ended September 30, 1995, filings totaled 233,593, up from the 208,187 bankruptcy cases filed during the quarter ended September 30, 1994. (See Table B.)
Over the last three years, year-end bankruptcy filings have fluctuated; with filings dropping to 897,231 in 1993; to 837,797 in 1994; and increasing to 883,457 in 1995. This is different from what occurred from 1988 to 1992 when bankruptcy filings increased rapidly, going from 604,759 cases in 1988 and reaching 977,478 cases by 1992.
Of the total number of bankruptcy cases filed in the twelve-month period ending September 30, 1995, there were 598,250 chapter 7 cases, up from the 571,971 chapter 7 cases filed in the same period in FY94. The next largest group of bankruptcy filings was under chapter 13, totaling 271,650, up from the 248,942 chapter 13 cases filed in the twelve-month period FY 94. Chapters 11 and 12 showed a decline in FY95. (See Table A). The increase in total bankruptcy filings was the result of increased non-business or consumer filings, which more than offset a slight drop in business bankruptcy filings.
Under chapter 7, individuals or businesses are permitted to keep certain exempt property, and the remaining property is sold to repay creditors. Under chapter 13, creditors may be repaid, in full or in part, in installments, over a three- to five-year period. Chapter 11 allows a business to continue to operate while devising a plan to repay creditors, and chapter 12 is designed to meet the needs of financially distressed family farmers. A breakdown of the latest data on bankruptcy filings per district follows.
Table A
Business and Nonbusiness Bankruptcy Cases Filed, By Chapter During the Twelve-Month Period Ended September 30, 1995 and 1994
9/30/95 883,457 598,250 12,639 883 271,650
9/30/94 837,797 571,971 15,920 931 248,942
9/30/95 51,042 28,800 11,168 883 10,156
9/30/94 54,425 30,781 13,379 931 9,301
9/30/95 832,415 569,450 1,471 261,494
9/30/94 783,372 541,190 2,541 239,641
Table B
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
JUN. 30, 1990 196,677