Small Business Bankruptcy Filings Increase
Small business owners filed 2326 cases under Chapter 13 which represented an increase of 10% from 2015. Thus, closely held businesses, and dba’s that qualified to file chapter 13, mirrored somewhat the Chapter 11 business filings (up 2% at 7,450), and represented the only significant increase in bankruptcy filings for 2016 according to the judicial business report for U.S.
Bankruptcy Courts. Overall, the report states that consumer bankruptcy filings in 2016 were 6% fewer than in 2015. It is reported as the lowest totals since 2007, which was the first full fiscal year after the bankruptcy abuse prevention and consumer protection act of 2005 took effect. Consumer petitions dropped to 781,123 which accounted for roughly 97% of all petitions. Chapter 7 petitions for consumers fell 9%. Business petitions made up the other 3% of the total and fell 2% from 2015 totaling 24,457 filings. Chapter 7 petitions for businesses fell 8% overall and constituted 62% of all business filings. Chapter 13 filings decreased 1% to 299,150.
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