Press Release
Administrative Office of the U.S. Courts
Release Date: August 15, 1997
Bankruptcy Filings Continue Climb in 3rd Quarter of Fiscal Year 1997


In the 12-month period ending June 30, 1997, bankruptcy filings in federal courts nationwide increased 26.4 percent over the same period in 1996, according to data released today by the Administrative Office of the U.S. Courts. Filings had increased 27.2 percent in the 1996 calendar year (a 12-month period ending December 31, 1996) and in the 12-month period ended March 31, 1997.


Filings in the 12-month period ending June 30, 1997, totaled 1,316,999, an all-time high. In comparison, 1,042,110 bankruptcies were filed for the 12-month period ending June 30, 1996, the first time bankruptcy filings ever topped the one million mark. Previously, the largest number of bankruptcies filed in a 12-month period had been 1,247,065 for the period ended March 31, 1997.


The number of bankruptcy cases filed during the third quarter (April 1, 1997 - June 30, 1997) of the Judiciary's fiscal year 1997 totaled 367,168. The second quarter (January 1, 1997 - March 31, 1997) bankruptcy filings were 335,073, until now the highest number ever filed for a quarter. Filings in the first quarter of fiscal year 1997 (October 1-December 31, 1996) totaled 311,131.


The number of bankruptcy filings has increased the workload of federal bankruptcy courts. While cases terminated between July 1, 1996, and June 30, 1997, rose 19.3 percent, the number of cases pending increased 14.3 percent. The Judiciary has asked Congress for additional bankruptcy judgeships to handle the rising caseload. New bankruptcy judgeships were last created in 1992 and since then bankruptcy petitions filed in one year have exceeded one million. The Bankruptcy Judgeship Act of 1997, H.R. 1596, would authorize a total of 18 new bankruptcy judgeships, seven new permanent bankruptcy judgeships and 11 temporary judgeships. The House has passed H.R. 1596, but there is no companion bill in the Senate.


Among the U.S. bankruptcy courts, the Central District of California remained the district reporting the largest number of filings in the country with 112,637, a 23.1 percent increase over the same 12-month period in 1996. The Northern and Eastern Districts of California, the Northern District of Illinois, the District of New Jersey, the Northern District of Georgia, and the Middle District of Florida all showed over 30,000 bankruptcy filings in this period. All districts, except for the Southern District of Alabama and the District of the Northern Mariana Islands, showed double-digit percent increases in filings.


Of the total number of bankruptcy filings for the 12-month period ending June 30, 1997, there were 917,274 Chapter 7 filings, an increase of 28.8 percent over the 712,219 filings in the same period in 1996. The next largest group of filings were Chapter 13 filings at 387,521, a 22.6 percent increase over the 316,024 filings in the same period in 1996. Chapter 11 filings dropped to 11,159 in the 12-month period ended June 30, 1997, down from 12,859 in the same period in 1996. Chapter 12 filings also fell slightly, going from 1,063 in 1996 to 1,006 in 1997. Business filings totaled 53,993, up slightly from the June 30, 1996 total. Non-business filings totaled 1,263,006.


Chapter 7 is designed to allow individuals to keep certain exempt property while the remaining property is sold to repay creditors. Under Chapter 13 bankruptcy, creditors may be repaid in installments, in full or in part, over a 3- to 5-year period. Chapter 11 provides for a business to continue operations while formulating a plan to repay its creditors. Chapter 12 is designed to meet the needs of financially distressed family farmers.


For the Judiciary, June 30, 1997, is the end of the third quarter of fiscal year 1997. In the third quarter, there were 367,168 bankruptcy filings. Total business filings in the third quarter numbered 13,991. Total non-business filings for the third quarter of 1997 were 353,177. A breakdown of the latest data on bankruptcy filings follows. For additional data on bankruptcy filings, click here.


Business and Non-business Bankruptcy Cases Filed, by Chapter
During the Three-month Period Ended June 30, 1997
 
Total Filings
367,168
Total Business
13,991
Total Non-Business
 353,177		 Chapter 7
263,983
Chapter 7 
8,287 
 Chapter 7 
 255,696		  Chapter 11
2,788
Chapter 11
2,510 
 Chapter 11
278		 Chapter 12
271 
Chapter 12 
271 
 
 		 Chapter 13 
100,113 
Chapter 13 
2,910 
Chapter 13 
97,203


Quarterly Bankruptcy Filings
3-Month Period
 
Ending Jun. 30, 1997
MAR. 31, 1997
DEC. 31, 1996
SEPT. 30, 1996 
JUN. 30, 1996
MAR. 31, 1996
DEC. 31, 1995
SEPT. 30, 1995
JUN. 30, 1995
MAR. 31, 1995
DEC. 31, 1994
SEPT. 30,1994
JUN. 30, 1994
MAR. 31, 1994
DEC. 31, 1993
SEPT. 30, 1993
JUN. 30, 1993
MAR. 31, 1993
DEC. 31, 1992
SEPT. 30, 1992
JUN. 30, 1992
MAR. 31, 1992
DEC. 31, 1991
SEPT. 30, 1991
JUN. 30, 1991
MAR. 31, 1991
DEC. 31, 1990
SEPT. 30, 1990		 Total Filings: 367,168
335,073 
311,131 
303,309
297,162 
266,149
244,494 
233,593
235,302
212,626
201,618
208,187 
216,213
206,565 
206,570 
215,498
229,406
222,694
228,562 
236,810 
250,622
252,733
234,383 
231,743 
246,430 
 231,017 
209,798 
192,555 
*Because of ongoing corrections to the bankruptcy database, the quarterly data may not total to the most recent annual figures.