U.S. Bankruptcy Courts — Judicial Business 2023

Nonbusiness petitions (i.e., those filed primarily by individuals with mainly consumer debt), which accounted for approximately 96 percent of all petitions, rose 12 percent to 416,607. Business petitions, which amounted to 4 percent of all petitions, increased 30 percent to 17,051. These increases occurred after a downturn in filings that began in the previous decade and grew steeper during the COVID-19 pandemic.

Petitions may be filed under chapters 7, 9, 11, 12, 13, and 15 of the Bankruptcy Code. Most nonbusiness petitions were filed under chapter 7 or under chapter 13. Most business petitions were filed under chapter 7 or under chapter 11.

Filings under chapter 7 rose 8 percent to 248,680 and constituted 57 percent of all cases filed. Nonbusiness chapter 7 filings accounted for 96 percent of all chapter 7 cases filed and amounted to 57 percent of all nonbusiness filings. Business chapter 7 petitions went up 24 percent and constituted 55 percent of all business cases filed, compared with 58 percent in 2022.

Cases filed under chapter 13 increased 20 percent to 178,214. These petitions accounted for 41 percent of all filings. Nonbusiness chapter 13 petitions grew 19 percent, rising to 176,986 and amounting to 42 percent of all nonbusiness petitions. Business chapter 13 petitions rose 29 percent and represented 7 percent of all business cases filed, the same as in 2022.

Chapter 11 filings went up 36 percent to 6,473. Chapter 11 cases, which typically require significantly more court resources than do cases filed under chapter 7 or chapter 13, accounted for 1 percent of all filings. Business petitions filed under chapter 11 increased 43 percent to 6,097 and amounted to 36 percent of all business cases filed, 3 percent more than 2022.

Filings under chapters 9, 12, and 15 of the Bankruptcy Code collectively accounted for less than 1 percent of all petitions filed.

Bankruptcy filings increased in all circuits. The District of Columbia Circuit had the largest percentage increase over last year as filings there rose 44 percent. The Sixth Circuit had the largest numeric growth, a rise of 8,095 cases (up 13 percent from last year).

The federal Judiciary has 90 bankruptcy courts, one in each judicial district except for the Districts of Guam, the Northern Mariana Islands, and the U.S. Virgin Islands (where bankruptcy cases are heard by a district court judge or a visiting bankruptcy judge), and except for the Eastern and Western Districts of Arkansas (which share a bankruptcy court). This year, 85 of the 90 bankruptcy courts reported higher filings compared with the previous year.

The number of bankruptcy cases terminated fell 2 percent to 455,846. As terminations outpaced filings, pending cases dropped 3 percent to 655,168.

For data on activity in the U.S. bankruptcy courts, see the F series of tables.

Adversary Proceedings

Adversary proceedings are separate civil lawsuits that arise in bankruptcy cases, including actions to object to or revoke discharges, to obtain injunctions or other equitable relief, and to determine the dischargeability of a debt. Adversary proceedings may be associated with consumer bankruptcy cases, but most arise in cases filed under chapter 11. Because of time limits imposed by Section 546 of the Bankruptcy Code, the number of adversary proceedings filed usually is related to the number of chapter 11 cases filed two years earlier.

In 2023, filings of adversary proceedings declined 1 percent to 12,504. This was 48 percent below the total for 2019. Of the 90 bankruptcy courts, filings of adversary proceedings increased in 44 courts, declined in 43 courts, and remained the same in 3 courts. Eighteen districts had reductions of 20 percent or more (compared with 41 districts in 2022). The largest numeric decrease was a drop of 518 filings (down 57 percent to 385) in the Southern District of Texas.  Twenty-four districts registered gains of 20 percent or more (compared with 8 districts in 2022). The Central District of California reported the largest numeric growth, an increase of 338 filings (up 56 percent).

Terminations of adversary proceedings declined 19 percent to 12,871. Pending adversary proceedings dropped 2 percent to 18,379.

Data on adversary proceedings in the bankruptcy courts can be found in Table F-8.