Overall bankruptcy rates drop – 95.3 MNC

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Despite the challenges posed by COVID-19 and bad weather, higher raw material prices and government support have finally turned the tide of the year-on-year increase in bankruptcies under Chapter 12.

The American Farm Bureau examined data from U.S. courts from June 2020 to June 2021 and found that there were 438 Chapter 12 bankruptcy filings, a decrease of 24 percent. The number of Chapter 12 registrations in the past 12 months is the lowest since 2015.

The decline in bankruptcy filings is a remarkable shift given the significant number of bankruptcies over the past three years.

The Southwest saw the largest increases in Chapter 12 registrations by total number and percentage. Submissions increased in three of the six states, including Colorado, Oklahoma, and New Mexico. Registrations also increased in the northeastern United States. Four regions of the country had better news, with a double-digit decrease in the number of Chapter 12 filings by total and percentage.

The Southeast had 54 fewer Chapter 12 filings; a decrease of 44 percent compared to the previous year. The Midwest, which leads all regions with 235 registrations, still had 61 fewer Chapter 12 bankruptcies last year, 21 percent fewer than in the previous year.


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