Economy

Bankruptcies Soar 28% in First 3 Quarters of 2016

It may not be a sign of an economy that may grow less in any year since the end of the Great Recession, but a bad business climate is likely one reason commercial bankruptcy filings are higher by 28% through the first nine months of the year to 28,789.

The data were posted by the American Bankruptcy Association, based on data from Epiq Systems.

Last month, the problem accelerated:

Total commercial filings for September 2016 were 3,072, representing a 38 percent increase from the 2,219 filings during the same period in 2015.

The distribution varies widely from state to state:

The average nationwide per capita bankruptcy filing rate for the first nine calendar months of 2016 (Jan. 1-Sept. 30) decreased slightly to 2.54 (total filings per 1,000 population) from the 2.55 rate for the first eight months of the year. The average daily filing total in September 2016 was 2,153, a 4 percent decrease from the 2,239 total daily filings registered in September 2015. States with the highest per capita filing rates (total filings per 1,000 population) through the first nine months of 2016 were:

  1. Tennessee (5.67)
  2. Alabama (5.52)
  3. Georgia (4.75)
  4. Illinois (4.19)
  5. Utah (4.17)

Unfortunately, there is no explanation in the data for what happened in Tennessee.

Sponsored: Find a Qualified Financial Advisor

Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to 3 fiduciary financial advisors in your area in 5 minutes. Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests. If you’re ready to be matched with local advisors that can help you achieve your financial goals, get started now.