U.S. bankruptcy filings totaled 75,170 in August, down 16% from 88,962 in August 2013. It's the largest year-to-year drop so far in 2014, according to data from Epiq Systems Inc.
Consumer filings dropped 15% to 72,467 from the August 2013 mark of 85,125. Total commercial filings in August decreased to 2,703, a 30% decline from the 3,837 recorded in August 2013. Total commercial Chapter 11 filings dipped 41% to 357 filings in August from the 604 commercial Chapter 11 filings in the year-ago period.
Total filings for August fell 3% compared to the 77,500 total filings in July. Total non-commercial filings for August also represented a 3% decrease from the July total of 74,613. Augusts commercial filing total represented a 6% decrease from the July commercial filing total of 2,887. August commercial chapter 11 filings were unchanged from the 357 filings in July. Filings have fallen every month in 2014 over the previous year, as both credit card delinquencies and foreclosures have dropped.
"The prolonged drop in bankruptcy filings reflects the financial landscape facing consumers and businesses," said ABI Executive Director Samuel J. Gerdano. "Amid sustained low interest rates and high filing costs, total bankruptcies for the year will fall below 1 million for the first time since 2007."
??The average nationwide per capita bankruptcy-filing rate in August was 3.05 (total filings per 1,000 per population), a slight decrease from the 3.07 rate registered in the first seven months of the year. Average total filings per day in August were 2,425, a 16% decrease from the 2,870 total daily filings in August 2013.