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INSIGHTi
United States Bankruptcy Courts: Recent
Caseload Statistics
July 15, 2020
This Insight provides information and statistics related to filings in the United States bankruptcy courts
for the 12-month period ending March 31, 2020 (this is the most recent 12-month period for which data
are available). This Insight provides information and data analysis related to judicial caseload statistics,
but does not provide legal analysis.
Number of Filings
For the 12-month period ending March 31, 2020, the overal number of bankruptcy filings fel by 1.1%
compared to the 12-month period ending March 31, 2019—declining from 772,646 to 764,282. Business
bankruptcy filings, however, increased during the 12-month period ending March 31, 2020, while
nonbusiness bankruptcy filings declined (both types of filings are discussed below). Because nonbusiness
bankruptcy filings constitute a much larger share of overal bankruptcy filings (e.g., 97% of al
bankruptcy filings for the most recent 12-month period were nonbusiness filings), the overal number of
bankruptcy filings declined during this period.
The 12-month period ending on March 31, 2020, included the first 18 days of the Coronavirus Disease
2019 (COVID-19) national emergency declared by President Trump on March 13, 2020. The reporting
period ended “just as new unemployment claims began spiking to historic levels.” Consequently,
increases in bankruptcy filings as a result of COVID-19 may be reported in future periods. As noted by
the Administrative Office of U.S. Courts, the “Great Recession [from December 2007 to June 2009]
triggered a surge in new bankruptcies over time, reaching a peak of nearly 1.6 mil ion new filings ” by
October 2010 (more than a year after the formal end of the recession). The notable increases in business
and nonbusiness bankruptcy filings during the Great Recession and its immediate aftermath are shown in
Figure 1.
Many observers anticipate an increase in bankruptcy filings as a result of the COVID-19 pandemic. In
terms of business filings, it has been reported that “already, companies large and smal are succumbing to
the effects of the coronavirus.” One finance expert, who created a method of predicting business failures,
has “estimated that this year wil easily set a record for so-cal ed mega bankruptcies” (i.e., companies that
are $1 bil ion or more in debt) and also “expects the number of ... large bankruptcies—at least $100
mil ion” to increase.
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A similar upward spike is expected by some observers for nonbusiness bankruptcy filings, as “more
Americans lose al or part of their incomes and struggle with mounting debts.” Such a spike may continue
after the peak of the pandemic has passed, as “historical y, there has always been a lag between economic
difficulties and surges in bankruptcy filings.”
Figure 1. Number of Business and Non-Business Bankruptcy Filings
(For 12-month periods ending on March 31 from 2001 to 2020)
Source: CRS compilation of data provided by the Administrative Office of U.S. Courts.
Congress has responded, through the CARES Act (P.L. 116-136), to the anticipated increase in
bankruptcy filings by making certain temporary changes to the federal bankruptcy rules. For example,
receipt of a stimulus check as a result of COVID-19 would not affect a debtor’s eligibility to file under
certain chapters of the Bankruptcy Code.
Additional y, on April 28, 2020, the Judicial Conference of the United States, in anticipation of increased
workload for bankruptcy courts as a result of COVID-19, requested that Congress convert 14 temporary
bankruptcy judgeships to permanent status.
Business Filings
For the 12-month period ending March 31, 2020, the number of business bankruptcy filings rose by 4.3%
compared to the 12-month period ending March 31, 2019—increasing from 22,157 to 23,114. This was
the first time business filings increased for a 12-month period ending on March 31 since March 31, 2010.
Additional y, for the month of March 2020, business bankruptcy filings (under Chapter 11) rose 17%
compared with the same month in 2019.
Nonbusiness Filings
For the 12-month period ending March 31, 2020, the number of nonbusiness filings fel by 1.2%
compared to the 12-month period ending March 31, 2019—declining from 750,489 to 741,168. This was,
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for 12-month periods ending on March 31, the ninth consecutive decline in nonbusiness bankruptcy
filings since March 31, 2011 (which Figure 1 shows was the most recent high mark for such filings).
For the month of March 2020, nonbusiness bankruptcy filings (under Chapters 7, 11, and 13) fel by 15%
compared to the same month in 2019.
Filings by Bankruptcy Chapter (for 12-Month Period Ending March 31,
2020)
Figure 2 provides, for the year ending March 31, 2020, the number and percentage of business and
nonbusiness filings that were filed under each chapter of the Bankruptcy Code. For both business and
nonbusiness filings, Chapter 7 was the most common chapter used by debtors during this period
(comprising approximately 63% for each). Under Chapter 7, any assets of a debtor not exempt from
creditors are reduced to money and the proceeds are distributed to creditors. A consumer who files under
Chapter 7 can receive complete discharge of his or her debt (except for certain debts prohibited from
discharge by the Bankruptcy Code).
Figure 2. Filings by Bankruptcy Chapter
(For 12-month period ending March 31, 2020)
Source: CRS compilation of data provided by the Administrative Office of U.S. Courts.
For business filings, Chapter 11 was the second most common bankruptcy chapter—representing 26.1%
of al filings during the 12-month period ending March 31, 2020. Under Chapter 11, an individual or
business (usual y a business) reorganizes its debt while continuing to operate. The third most common
chapter for business filings, Chapter 13, can be used when an individual is the sole proprietor of a
business.
For nonbusiness filings, Chapter 13 was the second most common bankruptcy chapter—representing
37.2% of al filings during the same period. Chapter 13 (sometimes cal ed “wage-earner bankruptcy”) is
typical y used by an individual consumer to reorganize his or her finances and to adopt a repayment plan
that is required to be completed within three to five years.
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Author Information
Barry J. McMillion
Analyst in American National Government
Disclaimer
This document was prepared by the Congressional Research Service (CRS). CRS serves as nonpartisan shared staff
to congressional committees and Members of Congress. It operates solely at the behest of and under the direction of
Congress. Information in a CRS Report should not be relied upon for purposes other than public understanding of
information that has been provided by CRS to Members of Congress in connection with CRS’s institutional role.
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