Filings for bankruptcy protection continued to fall nationwide last year — with the exception of individual Chapter 13 filings, which increased significantly.
According to statistics released Monday by the Administrative Office of the U.S. Courts, bankruptcy filings for the 12-month period ending Dec. 31, 2022, totaled 387,721 nationwide, down 6.3% from the 413,616 cases filed during the same period in 2021.
The 2022 total includes 13,481 business filings — down 6% from 2021 — and 374,240 nonbusiness filings — down 6.3% from the previous year.
Chapter 13 filings for the period totaled 157,087, up 30.9% from the 120,002 filings a year prior. Under Chapter 13 bankruptcy, individual debtors with regular income come up with a plan to repay all or a portion of their debts over a three- to five-year period.
Chapter 11 filings totaled 4,918 last year, up 1.7% from the previous year. Chapter 11, or reorganization bankruptcy, allows for the debtor — usually a corporation — to reorganize its finances while continuing to run its business, with the goal of repaying creditors over time.
Overall bankruptcy filings also fell in Indiana’s courts last year.
The U.S. Bankruptcy Court for the Southern District of Indiana, which includes Indianapolis, Evansville, New Albany and Terre Haute, saw a total of 8,000 bankruptcy filings last year, down 9.6% from the 8,853 cases filed in 2021.
Of those 8,000 filings, 109 were business bankruptcies and 7,891 were nonbusiness bankruptcies. Breaking down those 8,000 filings another way, 4,721 were Chapter 7 filings; 3,240 were Chapter 13 filings; 37 were Chapter 11 filings; and two were for other chapters.
Within the Southern District of Indiana, Marion County had the highest number of bankruptcy filings, with 2,435. Vanderburgh County was second, with 487 filings, and Hamilton County was third, with 315.
The U.S. Bankruptcy Court for the Northern District of Indiana, which includes Fort Wayne, Hammond, Lafayette and South Bend, saw a total of 5,076 bankruptcy filings last year, down 9.9% from the 5,634 cases filed in 2021.
Of those 5,076 filings, 59 were business bankruptcies and 5,017 were nonbusiness bankruptcies. Also of those 5,076 filings, 3,112 were Chapter 7 filings; 1,943 were Chapter 13 filings; and 21 were Chapter 11 filings.
Within the Northern District of Indiana, Lake County had the highest number of bankruptcy filings, with 1,542. Allen County came in second, with 780 filings, and Porter County was third, with 423.