January 26, 2022

News

News Network

Bankruptcy Filings Fall 11.8 Percent for Year Ending June 30

13 min read
<div>Despite a sharp rise in unemployment related to the coronavirus (COVID-19) pandemic, personal and business bankruptcy filings fell 11.8 percent for the 12-month period ending June 30, 2020, according to statistics released by the Administrative Office of the U.S. Courts.</div>

Despite a sharp rise in unemployment related to the coronavirus (COVID-19) pandemic, personal and business bankruptcy filings fell 11.8 percent for the 12-month period ending June 30, 2020, according to statistics released by the Administrative Office of the U.S. Courts. Annual bankruptcy filings totaled 682,363, compared with 773,361 cases in the year ending June 2019.

Business filings remained virtually identical to a year before, at 22,482. However, non-business bankruptcy filings fell by 12.1 percent, to 659,881 in the year ending June 30, 2020, compared with 750,878 in the year ending June 2019.

Bankruptcy filings tend to escalate gradually after an economic downturn starts. Following the Great Recession, new filings escalated over a two-year period until they peaked in 2010.

Some filing activity also may have been affected by pandemic-related disruptions to bankruptcy courts, many of which have limited public building access since mid-March. 

Business and Non-Business Filings,
Years Ending
June 30, 2016-2020
Year Business Non-Business Total
2020 22,482 659,881 682,363
2019 22,483 750,878 773,361
2018 22,245 753,333 775,578
2017 23,443 772,584 796,037
2016 25,227 793,932 819,159
Total Bankruptcy Filings By Chapter,
Years Ending
June 30, 2016-2020
Year Chapter
  7 11 12 13
2020 440,593 7,355 580 233,644
2019 479,043 7,007 535 286,635
2018 479,151 7,141 475 288,741
2017 489,011 6,999 482 299,398
2016 509,769 7,928 459 300,858

The following bankruptcy filings statistics tables are available: 

For more on bankruptcy and its chapters, view the following resources:

News Network

  • Appeals Court Upholds 27 Month Prison Sentence Of Former Penn National Horse Trainer
    In Crime News
    The U.S. Attorney’s Office for the Middle District of Pennsylvania announced that on Jan. 11, 2021, the U.S. Court of Appeals for the Third Circuit affirmed both the conviction and 27-month prison sentence of Murray Rojas, age, 54, of Grantville, Pennsylvania. That sentence was imposed by Senior U.S. District Court Judge Sylvia H. Rambo on May 6, 2019, after Rojas was convicted by a jury on multiple counts of causing prescription animal drugs to become misbranded in violation of the Federal Food, Drug, and Cosmetic Act (FDCA), as well as conspiracy to commit misbranding.
    [Read More…]
  • Military Base Realignments and Closures: DOD Is Taking Steps to Mitigate Challenges but Is Not Fully Reporting Some Additional Costs
    In U.S GAO News
    The 2005 Base Realignment and Closure (BRAC) round is the fifth such round undertaken by DOD since 1988 and is the biggest, most complex, and costliest BRAC round ever. With this BRAC round, the Department of Defense (DOD) plans to execute hundreds of BRAC actions affecting over 800 defense locations, relocate over 123,000 personnel, and spend over $35 billion--an unprecedented amount, given that DOD has spent nearly $26 billion to implement the four previous BRAC rounds combined when all relevant BRAC actions have been completed. As with prior BRAC rounds, DOD is required to implement the BRAC Commission's 2005 recommendations within 6 years of their approval by the President and transmittal to Congress. Unlike with prior BRAC rounds, DOD is implementing the BRAC 2005 round during a time of conflict and significant increases to the defense budget to support ongoing contingency operations. Compounding this challenge, DOD is also implementing other extensive worldwide transformation initiatives such as the permanent relocation of about 70,000 military personnel to the United States from overseas; transformation of the Army's force structure from an organization based on divisions to more rapidly deployable, combat brigade-based units; an increase in the active-duty end strength of the Army and Marine Corps by 92,000 members; and the drawdown of combat forces from Iraq while simultaneously increasing the U.S. military presence in Afghanistan. All of these initiatives are exerting an unusually high demand on DOD's domestic facility infrastructure to accommodate new forces and existing forces being deployed or redeployed. The Office of the Secretary of Defense (OSD) at the outset of BRAC 2005 indicated its intent to reshape DOD's installations and realign DOD forces to meet defense needs for the next 20 years. Moreover, both DOD and the BRAC Commission reported that their primary consideration in making recommendations for the BRAC 2005 round was military value. As such, as opposed to simply closing bases, many of the BRAC 2005 recommendations involve complex realignments, such as designating where military forces returning to the United States from overseas bases would be located; establishing joint military medical centers; creating joint bases; and reconfiguring the defense supply, storage, and distribution network. The BRAC statute requires DOD to complete all BRAC 2005 closures and realignments by September 15, 2011. As we reported in January 2009, DOD expects almost half of the 800 defense locations implementing BRAC recommendations to complete their actions in 2011, with 230 of these 400 locations anticipating completion within the last 2 weeks before the statutory deadline. At the time of this report, DOD had only 14 months remaining until the The House Armed Services Committee report accompanying the National Defense Authorization Act for Fiscal Year 2008 directed the Comptroller General to monitor the implementation of recommendations for the 2005 round of closures and realignments of military installations made pursuant to section 2914 of the Defense Base Closure and Realignment Act of 1990. We prepared this report, our fourth, in response to the mandate, to assess (1) the challenges, if any, DOD faces in implementing BRAC recommendations and (2) DOD's efforts to mitigate any challenges and the extent to which any costs related to those mitigation efforts are being reported as BRAC implementation costs.DOD is implementing 182 BRAC recommendations for this BRAC round, but several logistical, human capital, and other implementation challenges remain. First, many locations are scheduled to complete the construction, relocation, personnel, and other actions needed to implement the recommendations within months of--and, in some cases, on--the deadline leaving little or no margin for slippage to finish constructing buildings and to move or hire the needed personnel. As of March 2010, DOD had 57 construction projects scheduled to be completed within 3 months of the statutory deadline, representing about 30 recommendations. Second, some DOD locations that involve the most costly and complex recommendations have encountered delays in awarding some construction contracts as well as experienced additional delays in the expected completion of construction. Third, DOD must synchronize the relocation of approximately 123,000 personnel with the availability of about $25 billion in new construction or renovation of facilities. Fourth, delays in interdependent recommendations are likely to have a cascading effect on the timely completion of related recommendations. These challenges have continued since our last report on BRAC implementation challenges, especially contracting and construction delays, which have further squeezed an already tight time line. The potential loss of intellectual capital is complicated by various community effects of BRAC implementation growth, such as transportation, housing, schooling, and availability of medical care. DOD is mitigating some BRAC implementation challenges, which is adding to implementation costs; however, DOD is not reporting all of these additional costs. To enhance its role in managing logistical challenges that could affect DOD's ability to achieve BRAC implementation by the statutory deadline, the military services are working with their leadership to develop solutions. Further, the military services and defense agencies are providing periodic briefings for BRAC recommendations exceeding $100 million in implementation costs, or that have significant concerns such as cost overruns or construction delays to the OSD Basing Directorate. For other BRAC recommendations, DOD is still weighing options, such as moving temporarily into different buildings while construction and renovations are completed, referred to as swing space, or accelerating the pace of construction to complete permanent facilities by the deadline, potentially incurring additional expenses. The DOD Financial Management Regulation requires the services and defense agencies to accurately capture BRAC-related costs in the annual BRAC budget justification materials submitted to Congress. Since DOD's recent fiscal year 2011 BRAC budget request--which was the final annual request for funds for the BRAC account before the statutory deadline for completion of closures and realignments--has already been submitted to Congress, such additional costs in our view may have to be funded from outside the BRAC account. However, we found that DOD's reported costs funded outside the BRAC account are not complete because the Army has not reported to Congress some of these costs as BRAC costs. Thus, OSD officials do not have full visibility over the extent of these costs funded from outside the BRAC account, given that the services prepare their own BRAC budget justification material. Until the Secretary of Defense ensures that all BRAC-related costs are captured and reported to Congress, neither congressional decision makers nor those within OSD who are charged with overseeing BRAC implementation will have a complete picture of the cost of implementing the 2005 BRAC round.
    [Read More…]
  • Medicaid: Information on the Use of Electronic Asset Verification to Determine Eligibility for Selected Beneficiaries
    In U.S GAO News
    What GAO Found Individuals who receive assistance from the federal Supplemental Security Income (SSI) program may also become eligible for Medicaid. SSI provides cash assistance to eligible individuals who are over age 65, blind, or disabled; and who have limited resources (i.e., assets) and income. Medicaid programs in 42 states and the District of Columbia use the SSI asset limit of $2,000 for an individual or $3,000 for a married couple. Medicaid programs in the remaining eight states may set an asset limit that differs from the current SSI asset limit. The Social Security Administration (SSA), which administers the SSI program, and state Medicaid programs electronically verify the assets of these individuals when determining financial eligibility: In the 42 states and the District of Columbia that use the SSI asset limit, SSA is the entity that verifies applicants' assets. SSA has two data sources to detect assets among SSI beneficiaries. The first data source is the Access to Financial Institutions initiative. This initiative verifies reported bank accounts and can detect potential undisclosed accounts from financial institutions within geographic proximity of an SSI recipient's residence. The second data source is Non-home Real Property, which uses a commercial data source to help investigate potential ownership of real property other than a primary residence. In the eight states that may set their own asset limits, the state's Medicaid program must verify Medicaid eligibility for SSI recipients using an electronic asset verification system (AVS). An AVS provides a portal between state eligibility systems and banks or other third-party systems with electronic access to financial information. Once a state has an AVS in place, state eligibility workers can submit a request through the portal to perform an asset check for a Medicaid applicant. The request is sent to different financial institutions. A vendor gathers the information from the financial institutions and returns it to the state, and eligibility workers use the information to make an eligibility determination. Some states also use their AVS to check on applicants' property information, which may come from commercial data sources. Why GAO Did This Study GAO was asked to review the use of electronic asset verification to determine eligibility for selected Medicaid beneficiaries. This report provides an overview of what is known about how state Medicaid programs verify assets of applicants who are eligible because they receive SSI, and how SSA verifies assets of SSI applicants, among other issues. To describe what is known about how state Medicaid programs and SSA verify applicants' assets, GAO reviewed its prior work, as well as related research by other organizations. GAO also obtained input from officials from the Centers for Medicare & Medicaid Services and SSA; and reviewed relevant federal laws, regulations, and guidance. The Department of Health and Human Services and SSA reviewed a draft of this report and provided technical comments, which GAO incorporated as appropriate. For more information, contact Carolyn L. Yocom at (202) 512-7114 or yocomc@gao.gov.
    [Read More…]
  • Djibouti Travel Advisory
    In Travel
    Reconsider travel to [Read More…]
  • Report to Congress: Human Trafficking in the Seafood Supply Chain
    In Crime Control and Security News
    Office of the [Read More…]
  • Associate Attorney General Vanita Gupta Delivers Remarks at Georgetown Law’s 15th Annual Global Antitrust Enforcement Symposium
    In Crime News
    Thank you for that kind introduction and for inviting me to speak at the 15th Annual Global Antitrust Enforcement Symposium hosted by Georgetown Law School. I bring greetings from the Attorney General.
    [Read More…]
  • Secretary Blinken’s Meeting with Israeli Alternate Prime Minister and Defense Minister Gantz
    In Crime Control and Security News
    Office of the [Read More…]
  • McAllen man sent to prison for attempting to entice minor through social media
    In Justice News
    A 27-year-old McAllen [Read More…]
  • Medicaid Behavioral Health: CMS Guidance Needed to Better Align Demonstration Payment Rates with Costs and Prevent Duplication
    In U.S GAO News
    What GAO Found In 2016, the Department of Health and Human Services (HHS) selected eight states to participate in a time-limited demonstration to establish certified community behavioral health clinics (CCBHC). These states, in turn, certified 66 behavioral health clinics as CCBHCs. Required to provide a broad range of behavioral health services—mental health and substance use services—CCBHCs are reimbursed by state Medicaid programs using clinic-specific rates designed to cover expected costs. Under the demonstration, states receive enhanced federal funding for CCBHC services provided to Medicaid beneficiaries. GAO found that five of the eight demonstration states reported generally increased state spending on CCBHCs, which officials from these states attributed to an increased number of individuals receiving treatment, an increased array of services provided, or both. In contrast, officials from the other three demonstration states did not report that the demonstration resulted in greater state spending. Officials from two of these states noted that the demonstration resulted in spending decreases, citing factors such as the demonstration's enhanced federal Medicaid funding. Officials from the remaining state said the effects on spending were unknown. In addition, four of the eight states assessed potential cost savings from the demonstration resulting from reductions in the use of more expensive care, such as emergency department visits. Officials from three of the four states viewed the results of their assessments as suggestive of potential cost savings, while officials from the fourth state did not. GAO's review of payment guidance for the demonstration from the Centers for Medicare & Medicaid Services (CMS), an agency within HHS that oversees Medicaid at the federal level, found that the guidance lacked clear and consistent information on better aligning CCBHC payment rates with costs and preventing duplicate payments. For example: CMS guidance gives states the option to rebase their initial payment rates after the first demonstration year (i.e., use data on actual costs incurred and number of client visits during the first demonstration year to recalculate rates for subsequent years). CMS officials said rebasing would mean states would not have to rely on anticipated cost and client visit data after the first year, and would align rates more closely with costs. While officials said CMS expected all states to rebase their rates at some point, CMS's guidance does not reflect this expectation, or provide details on rebasing, such as suggested time frames. CMS guidance conflicts as to whether CCBHCs that are also Federally Qualified Health Centers (FQHC)—safety net providers that generally provide some behavioral health services—should receive CCBHC and FQHC payments for the same client on the same day if provided services overlap. Addressing these weaknesses is important to help ensure that Medicaid CCBHC payments meet requirements for Medicaid payments under federal law, including that they be consistent with efficiency, economy, and quality of care, and are sufficient to ensure access to care. Why GAO Did This Study Behavioral health conditions affected an estimated 61.2 million adults in 2019. Congress has taken steps to expand access to behavioral health treatment, including authorizing the CCBHC demonstration, which is intended to improve the availability of community-based behavioral health services. The CARES Act included a provision for GAO to report on states' experiences participating in the CCBHC demonstration. Among other objectives, this report describes what states reported about how the CCBHC demonstration affected state spending on behavioral health services; and examines CMS guidance for states on Medicaid CCBHC payments. GAO reviewed documentation from and interviewed Medicaid and behavioral health officials from the eight CCBHC demonstration states, as well as federal officials tasked with demonstration oversight. GAO also reviewed documentation and interviewed officials from a nongeneralizable sample of three CCBHCs, which GAO selected for a number of reasons, including variation in geographic location.
    [Read More…]
  • Justice Department Alleges Conditions at Lowell Correctional Institution Violate the Constitution
    In Crime News
    The Justice Department’s Civil Rights Division and the U.S. Attorney’s Office for the Middle District of Florida today concluded that there is reasonable cause to believe that the conditions at Lowell Correctional Institution (Lowell) in Ocala, Florida violate the Eighth Amendment of the Constitution. Specifically, the department concluded that there is reasonable cause to believe that Lowell fails to protect prisoners from sexual abuse by the facility’s staff.
    [Read More…]
  • And His All-Holiness Ecumenical Patriarch Bartholomew Before Their Meeting
    In Crime Control and Security News
    Antony J. Blinken, [Read More…]
  • Preclearance Request for Application
    In Travel
    Airport operators and [Read More…]
  • Justice Department Seeks to Shut Down Washington Return Preparer
    In Crime News
    The United States has filed a complaint in the U.S. District Court for the Western District of Washington seeking to bar a Kent, Washington, tax return preparer from preparing federal tax returns for others. The parties have contemporaneously filed a joint motion for entry of a permanent injunction by consent.
    [Read More…]
  • Financial Assistance: Lessons Learned from CARES Act Loan Program for Aviation and Other Eligible Businesses
    In U.S GAO News
    The CARES Act authorized up to $46 billion for the Department of the Treasury (Treasury) to make loans to aviation and other eligible businesses affected by the COVID-19 pandemic. Of the 267 applications submitted to the loan program, 35 loans providing $21.9 billion in assistance were executed. Treasury officials do not expect to make any additional loans before Treasury's authority to make loans expires. Applications and Loans for CARES Act Loan Program for Aviation and Other Eligible Businesses, by Category in Statute Type of business Number of applications submitted Assistance sought/available (billions of dollars) Number of loans executed Assistance provided (billions of dollars) Passenger air carrier, repair station operator, and ticket agent 183 35 / 25 23 21.2 Cargo air carrier 10 0.8 / 4 1 0.002 National security business 74 2.6 / 17 11 0.7 Total 267 38.3 / 46 35 21.9 Source: GAO analysis of Department of the Treasury data | GAO-21-198 Note: Pub. L. No. 116-136, § 4003(b)(1)-(3). Participation in the loan program varied across business types due to timing of decisions and other factors, according to stakeholders. Treasury prioritized applications from the largest passenger air carriers and executed loans with seven of them for nearly $20.8 billion. For other applicants, including smaller passenger air carriers and ticket agents, the amount of time Treasury took to evaluate their applications and other challenges affected the number of loans executed, according to selected industry associations. Treasury's authority to make new loans under this program is set to expire in December 2020, and the loan program offers Congress and Treasury lessons for designing and implementing programs of this type in the future. For example: Multiple programs, or multiple paths within a program, may better accommodate businesses of varied types and sizes. It is difficult to implement a program quickly for a wide range of businesses. In addition, a loan program well suited to large, financially sophisticated applicants will not likely be well suited to smaller businesses. Setting and communicating clear program goals could better align lender and borrower expectations. Treasury viewed itself as a lender of last resort but did not state this view in published documents. This omission led to some applicants being surprised by parts of the process, such as when Treasury encouraged over a third of all applicants to apply to another loan program before continuing to pursue a loan from Treasury. Communicating clear timelines for action can also help align lender and borrower expectations. The lack of a published timeline resulted in frustration among some applicants when loans were not made more quickly. The COVID-19 pandemic has resulted in catastrophic loss of life and substantial damage to the global economy, including the aviation sector. U.S. passenger air carriers have lost almost $20 billion and over 47,000 jobs in 2020, with losses forecast to continue into 2021. In March 2020, Congress passed, and the President signed into law, the CARES Act, which provides over $2 trillion in emergency assistance and health care response for individuals, families, and businesses affected by the COVID-19 pandemic, including businesses in the aviation sector. The CARES Act contained a provision for GAO to review the loans provided under the Act. This report examines, among other things, eligible businesses' participation in the loan program and lessons learned from the program for Congress and Treasury. GAO reviewed Treasury documents and data on applications received and loans executed; interviewed Treasury officials on the design and implementation of the program; and interviewed eight industry associations that represent the range of businesses eligible for loans, eight passenger air carriers, and other selected applicants to gather their views on the program. GAO will continue to monitor and report on CARES Act assistance to the aviation industry. This oversight includes the loan program and another Treasury program—the Payroll Support Program—that provided assistance to certain aviation businesses to continue paying employee wages, salaries, and benefits. For more information, contact Heather Krause at (202) 512-2834 or krauseh@gao.gov.
    [Read More…]
  • Fifth Anniversary of Colombia’s Peace Accord
    In Crime Control and Security News
    Antony J. Blinken, [Read More…]
  • Vanuatu Travel Advisory
    In Travel
    Reconsider travel to [Read More…]
  • Jury convicts Houstonian in human smuggling conspiracy
    In Justice News
    A federal jury has [Read More…]
  • Justice Department Obtains $20,000 Settlement Against Tampa, Florida Towing Company for Unlawfully Selling Deployed Servicemember’s Car
    In Crime News
    The Justice Department today announced that Target Recovery Towing Inc. (Target) has agreed to enter into a court-enforceable consent order to resolve allegations that it failed to obtain a legally required court order before auctioning off a car belonging to a U.S. Marine Corps Sergeant who was deployed overseas. 
    [Read More…]
  • Weapon System Sustainment: Aircraft Mission Capable Rates Generally Did Not Meet Goals and Cost of Sustaining Selected Weapon Systems Varied Widely
    In U.S GAO News
    Mission Capable Rates for Selected Department of Defense Aircraft GAO examined 46 types of aircraft and found that only three met their annual mission capable goals in a majority of the years for fiscal years 2011 through 2019 and 24 did not meet their annual mission capable goals in any fiscal year as shown below. The mission capable rate—the percentage of total time when the aircraft can fly and perform at least one mission—is used to assess the health and readiness of an aircraft fleet. Number of Times Selected Aircraft Met Their Annual Mission Capable Goal, Fiscal years 2011 through 2019 aThe military departments did not provide mission capable goals for all nine years for these aircraft. Aggregating the trends at the military service level, the average annual mission capable rate for the selected Air Force, Navy, and Marine Corps aircraft decreased since fiscal year 2011, while the average annual mission capable rate for the selected Army aircraft slightly increased. While the average mission capable rate for the F-35 Lightning II Joint Strike Fighter showed an increase from fiscal year 2012 to 2019, it trended downward from fiscal year 2015 through fiscal year 2018 before improving slightly in fiscal year 2019. For fiscal year 2019, GAO found only three of the 46 types of aircraft examined met the service-established mission capable goal. Furthermore, for fiscal year 2019: six aircraft were 5 percentage points or fewer below the goal; 18 were from 15 to 6 percentage points below the goal; and 19 were more than 15 percentage points below the goal, including 11 that were 25 or more percentage points below the goal. Program officials provided various reasons for the overall decline in mission capable rates, including aging aircraft, maintenance challenges, and supply support issues as shown below. Sustainment Challenges Affecting Some of the Selected Department of Defense Aircraft aA service life extension refers to a modification to extend the service life of an aircraft beyond what was planned. bDiminishing manufacturing sources refers to a loss or impending loss of manufacturers or suppliers of items. cObsolescence refers to a lack of availability of a part due to its lack of usefulness or its no longer being current or available for production. Operating and Support Costs for Selected Department of Defense Aircraft Operating and support (O&S) costs, such as the costs of maintenance and supply support, totaled over $49 billion in fiscal year 2018 for the aircraft GAO reviewed and ranged from a low of $118.03 million for the KC-130T Hercules (Navy) to a high of $4.24 billion for the KC-135 Stratotanker (Air Force). The trends in O&S costs varied by aircraft from fiscal year 2011 to 2018. For example, total O&S costs for the F/A-18E/F Super Hornet (Navy) increased $1.13 billion due in part to extensive maintenance needs. In contrast, the F-15C/D Eagle (Air Force) costs decreased by $490 million due in part to a reduction in the size of the fleet. Maintenance-specific costs for the aircraft types we examined also varied widely. Why This Matters The Department of Defense (DOD) spends tens of billions of dollars annually to sustain its weapon systems in an effort to ensure that these systems are available to simultaneously support today's military operations and maintain the capability to meet future defense requirements. This report provides observations on mission capable rates and costs to operate and sustain 46 fixed- and rotary-wing aircraft in the Departments of the Army, Navy, and Air Force. How GAO Did This Study GAO was asked to report on the condition and costs of sustaining DOD's aircraft. GAO collected and analyzed data on mission capable rates and O&S costs from the Departments of the Army, Navy, and Air Force for fiscal years 2011 through 2019. GAO reviewed documentation and interviewed program office officials to identify reasons for the trends in mission capability rates and O&S costs as well as any challenges in sustaining the aircraft. This is a public version of a sensitive report issued in August 2020. Information on mission capable and aircraft availability rates were deemed to be sensitive and has been omitted from this report. For more information, contact Director Diana Maurer at (202) 512-9627 or maurerd@gao.gov.
    [Read More…]
  • Secretary Antony J. Blinken With George Stephanopoulos of ABC’s Good Morning America
    In Crime Control and Security News
    Antony J. Blinken, [Read More…]
Network News © 2005 Area.Control.Network™ All rights reserved.