Rural bankruptcy filings are on the decline, according to data from the Administrative Office of the U.S. Courts. Data show that, from 2014 to 2015, there was a 2 percent decline in bankruptcy filings among rural Pennsylvania businesses and individuals. The data encompass a 12-month period ending in 2014 and a similar period ending in 2015.
The decline in rural bankruptcies, however, pales in comparison to the decline in urban bankruptcies, as the number of urban businesses and individuals filing for bankruptcy declined 15 percent from 2014 to 2015. Nationwide, there was a 12 percent decline in filings.
In 2015, there were 6,536 rural bankruptcy filings, or 1.9 filings per 1,000 residents. During the same period, there were 16,792 urban bankruptcy filings, or 1.8 per 1,000 residents.
The majority of both rural and urban bankruptcy filings were consumer, or nonbusiness, filings (97 and 96 percent, respectively). Consumer debt is debt incurred by an individual primarily for a personal, family, or household purpose. If the debtor is a corporation or partnership, or if the debt related to the operation of a business predominates, the debt is considered to be business.
While business bankruptcy filings are only a fraction of the total filings (less than 5 percent), they have increased. From 2014 to 2015, there was a 6 percent increase in rural business filings. Urban business filings, however, decreased 25 percent.