A total of 296 bankruptcies were filed during December 2021, 157 or 34.7% less than in December of the previous year. When compared to November of 2021 filings decreased by 20 or 7.2%. A total of 3,863 bankruptcies were filed in 2021, 1,255 or 24.5% less than in 2020. When compared to 2019 bankruptcy filings decreased by 3,809 or 49.6%.
Chapter 7 is available to debtors with low income or below the corresponding “median income” or who succeed in passing what is known as a means test. Commonly the person has few or enough assets for basic needs (clothing, furniture, etc.). December 2021 saw a total of 113 chapter 7 filings, 81 or 41.8% less filings than December 2020. On the other hand, chapter 7 filings increased by 7 or 6.6% when compared to November 2021. It is also worth noting that December was the third month with the fewest amount of chapter 7 filings in 2021 right after November (106) and January (109). A total of 1,564 chapter 7 bankruptcies were filed during 2021, 704 or 31% less than in 2020.
Generally, Chapter 13 is available to debtors with unsecured debt of less than $ 394,725; and whose insured debts do not exceed $ 1,184,200 (Amounts are adjusted systematically to reflect changes in inflation). Final eligibility is determined on a case-by-case basis based on many factors and legal requirements. December 2021 saw a total of 181 chapter 13 filings, 76 or 29.6% less than in December of 2020. When compared to November 2021 chapter 13 filings increased by 12 or 7%. A total of 2,254 chapter 13 bankruptcies were filled in 2021, 562 or 20% less than in 2020.
Finally, chapter 12 bankruptcies are aimed towards family farmers and family fishermen to enable them to carry out a plan to repay their debts. There were no chapter 12 bankruptcies filed in December 2021 to bring the yearly total up to 5, 1 or 25% more than in 2020. There were no chapter 9 bankruptcies filed on 2021. When compared to 2019 commercial bankruptcies decreased
A total of 16 commercial bankruptcies were filed in December 2021, 10 or 38.5% less than in December of 2020. When compared to November 2021 filings increased by 2 or 14%. A total of 206 commercial bankruptcies were filed in 2021, 37 or 15.2% less than in 2020. When compared to 2019 commercial bankruptcy filings decreased by 197 or 48.9%.
A total of 5 chapter 7 commercial bankruptcies where filed, 8 or 61.5% less than in December 2020. When compared to November 2021, chapter 7 filings increased by 1 or 25%. A total of 65 commercial bankruptcies were filed under chapter 7 of the bankruptcy code, 74 or 53.2% less than in 2020.
A total of 9 chapter 13 bankruptcies were filed in December 2021, 2 or 18.2% less than in December 2020. When compared to November 2021 chapter 5 commercial filings remained the same. A total of 96 chapter 13 commercial bankruptcies were filed in 2021, 83 or 46.37% less than in 2020.
Chapter 11 of the Federal Bankruptcy Code is primarily for businesses (small and large) such as Corporations and Partnerships. It can also be used by individuals with high amounts of debt and assets who don’t qualify under Chapter 13 Bankruptcy. Another key difference is that contrary to a chapter 7 bankruptcy, a chapter 11 allows a company to remain in business. A total of 2 chapter 11 bankruptcies were filed during December 2021 the same number of filings as December 2020. When compared to November 2021 chapter 11 filings increased by 1. A total of 40 chapter 11 bankruptcies were filed in 2021, 74 or 64.91% less than in 2020.
Overall bankruptcies have decreased significantly when compared to 2020 and 2019, despite commercial bankruptcies decreasing at a slower pace. This suggest that the brunt of the short-term economic impact of the COVID-19 pandemic is behind us. However economic restrictions have been brought back to combat a new increase in COVID-19 cases and with 41.26% of tests returning a positive result one should remain especially vigilant of new developments in the COVID-19 pandemic.