| FY |
Business |
Non-Business |
Total |
| 2002 |
39,091 |
1,508,578 |
1,547,669 |
| 2001 |
38,490 |
1,398,864 |
1,437,354 |
| 2000 |
36,065 |
1,226,037 |
1,262,102 |
| 1999 |
38,625 |
1,315,751 |
1,354,376 |
| 1998 |
47,125 |
1,389,839 |
1,436,964 |
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Bankruptcy Filings Hit Fiscal Year Historic High in
2002
The number of bankruptcy filings in the federal courts in Fiscal Year 2002
broke records again, and with no new bankruptcy judgeships and funding frozen,
the Judiciary is struggling to handle the caseload. According to the Administrative
Office of the U.S. Courts, more bank-ruptcies were filed in the 12-month
period ending September 30, 2002 than at any time in history. Bankruptcy
cases for FY 2002 totaled 1,547,669, up 7.7 percent from the 1,437,354 bankruptcy
filings for FY 2001. The 2002 Fiscal Year bankruptcy filings total breaks
the record just set in the 12-month period ending June 30, 2002, when bankruptcies
totaled 1,505,306. Non-business or personal bankruptcy filings, which make
up the majority of bankruptcy filings, also broke records with a total of
1,508,578, up 1.5 percent from the fiscal year 2001 filings. Business filings
in the 12-month period ending September 30, 2002, totaled 39,091, up 1.6
percent from the same period in 2001. The Judiciary's fiscal year is the
twelve-month period from October 1 through September 30.
Caseload Soars, No Relief in Sight
The caseload of bankruptcy judges has increased 59 percent in the past
decade
with the rise of bankruptcy filings. The average number of cases handled
per bank-ruptcy judgeship has gone from 2,998 in 1992 to 4,777 in 2002.
The Judiciary has requested new bankruptcy judgeships to handle the expanding
workload, but no new bank-ruptcy judges have been added to the federal
bench since 1992. The Judiciary is handicapped further by the current
long-term continuing resolution. Until Congress passes the Judiciary's
FY 2003 appropriations bill, court units must function at rates of operation
no more than 95 percent of their fiscal year 2002 levels. No budget relief-or
room to address the record growth in bankruptcy filings -can be considered
until Congress returns next year.
Filings Under Chapters 7, 11 and 13 Increase
In Fiscal Year 2002, filings under all chapters of the Bankruptcy Code
increased, with the exception of Chapter 12 filings. The number of Chapter
7 filings rose 6.9 percent from the previous fiscal year to 1,084,336.
Chapter 13 filings rose 9.5 percent to 451,258. Chapter 11 filings rose
10.9 percent to 11,669. Chapter 12 filings fell 15 percent to 322. Chapter
7 is designed to allow individuals to keep certain exempt property while
the remaining property is sold to repay creditors. Under Chapter 13 bankruptcy,
creditors may be repaid in installments, in full or in part, over a 3-
to 5-year period. Chapter 11 provides for a business to continue operations
while formulating a plan to repay its creditors. Chapter 12 is designed
to meet the needs of financially distressed family farmers.
Fourth Quarter Filings
The number of bankruptcy cases filed during the fourth quarter of the
Judiciary's fiscal year (July 1, 2002 - September 30, 2002) totaled 401,306.
The number of bankruptcy cases filed during the third quarter of the Judiciary's
2002 fiscal year (April 1, 2002-June 30, 2002) totaled 400,686. The number
of bankruptcies filed during the second quarter of fiscal year 2002 (January
1, 2002-March 31, 2002) was 379,012. Filings for the Judiciary's first
quarter of 2002 (October 1, 2001 -December 31, 2001) totaled 364,921.
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