Which has declined more since COVID-19 -- Chapter 7, or Chapter 13 Bankruptcy Filings?

Contrary to popular belief, the number of consumer bankruptcies has not increased since COVID-19 began. In fact, the number of cases filed has dropped significantly. Now let’s explore if there has been a greater impact on a specific type of bankruptcy, to wit: Chapter 7s or Chapter 13s:

Below are the numbers for 2018, 2019, 2020, and 2021 (through November, 2021):

2018 Southern District of Ohio:

               Chapter 7 cases filed: 11,577 (or 964/mo)
               Chapter 13 cases filed: 5,419 (or 451/mo)
               Total: 16,996 (or 1,416/mo)

2019 Southern District of Ohio:

               Chapter 7 cases filed: 11,735 (or 977/mo)
               Chapter 13 cases filed: 5,305 (or 442/mo)
               Total: 17,040 (or 1,420/mo)

2020 Southern District of Ohio:

               Chapter 7 cases filed: 9,099 (or 758/mo)
               Chapter 13 cases filed: 2,891 (or 240/mo)
               Total: 11,990 (or 999/mo)

2021 Southern District of Ohio (thru November, 2021):

               Chapter 7 cases filed: 6,649 (or 604/mo)
               Chapter 13 cases filed: 2,057 (or 187/mo)
               Total: 8,706 (or 791/mo)

Now let’s compare 2019 per-month numbers to the 2021 per-month numbers. What percentage of cases filed are chapter 7 cases? And what percentage are chapter 13 cases? Have chapter 7s & 13s decreased uniformly, or is one more impacted than the other?

2019: 1,420 total cases filed per month

68.9% of the total cases filed were Chapter 7 Bankruptcies
31.1% of the total cases filed were Chapter 13 Bankruptcies

2021 (through November): 791 total cases filed per month (a 44.3% decline from the 2019 numbers)

Now, 76.4% of the total cases filed are Chapter 7 Bankruptcies
And only 23.6% of the total cases filed are Chapter 13 Bankruptcies

In sum, the total cases filed per month - 2019 vs 2021 - has decreased by 44.3%. And chapter 13s have been the biggest hit:

Chapter 7s have gone from 977/mo (2019) to 604/mo (2021) – a decrease of 38%.

Chapter 13s have decreased from 442/mo (2019) to 187/mo (2021) – a decrease of 57%.

Why are less bankruptcies being filed?

Why are chapter 13 bankruptcies the most impacted?

People can speculate. Regardless, many people are struggling mightily as the world tilts back to normalcy. Bankruptcy can help get you a fresh start! Call/Text/Email Lucas Ruffing for a free consultation.

Thanks for Reading,

Lucas Ruffing, Attorney
740-815-1114
LucasRuffingLaw@gmail.com