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Job loss, medical expenses, and escalating mortgage payments are among the common reasons people file for bankruptcy. Overspending can also contribute to a situation that forces someone to file for bankruptcy.
U.S. Corporate Bankruptcies Grow So far in 2023, over 400 corporations have gone under. Corporate bankruptcies are rising at the fastest pace since 2010 (barring the pandemic), and are double the level seen this time last year.
Epiq had previously reported commercial Chapter 11 filings jumped by 68% in the first six months of 2023, to a total of 2,793, compared with 1,776 in last year's first half.
As we enter the latter half of 2023, we're seeing a continued rise in bankruptcy filings. ing to the Administrative Office of the U.S. Courts, business filings rose 23.3% in the 12-month period ending June 30, 2023. Chapter 11 filings have jumped 68% in the first half of the year, as compared to prior year.
In 2022, California had the largest number of bankruptcy filings in the United States, while Alaska had the lowest. The number of non-business bankruptcy filings has been decreasing since 2010. The same is true for the annual number of business bankruptcy cases which have been in decline since 2009.