NEW YORK— Commercial Chapter 11 bankruptcy filings soared 78% in July compared to the same month last year, according to new data from Epiq AACER, a provider of U.S. bankruptcy statistics.
There were 911 commercial Chapter 11 filings last month, up from 512 in July 2024. Total commercial filings increased 26% year over year to 2,997, while small business filings under Subchapter V rose 30% to 206.
“Overall volumes are steadily climbing back toward pre-pandemic levels,” sad Michael Hunter, vice president at Epiq AACER, said in a statement. “We anticipate this growth will continue throughout the remainder of 2025 and into 2026, driven by persistent economic pressures such as high interest rates, inflation, record household debt levels, rising delinquency rates, and geopolitical uncertainty.”
In total, 49,614 bankruptcies were filed in July, a 12% increase from 44,452 in July 2024. Noncommercial filings rose 11% year over year to 46,617. Consumer Chapter 7 filings climbed 13% to 29,122, and Chapter 13 filings increased 7% to 17,392, the company reported.
Month Over Month Increase
According to the new data, month over month, commercial Chapter 11 filings in July represented a 46% increase from June’s total of 626. Total commercial filings rose 15% over the previous month’s total of 2,601. However, Subchapter V filings decreased 2% from June’s total of 211.
Total U.S. bankruptcy filings increased 7% from June’s 46,239. Noncommercial bankruptcies also rose 7% month over month, as did both Chapter 7 and Chapter 13 consumer filings, Epiq AACER stated.
“Businesses and consumers are increasingly turning to bankruptcy amid the continued economic strains of elevated prices, higher borrowing costs and uncertain geopolitical events,” Amy Quackenboss, executive director of the American Bankruptcy Institute, said in a statement.
Bipartisan Support
Quackenboss noted growing congressional interest in restoring higher debt thresholds for Subchapter V and Chapter 13. A July 15 hearing held by the House Judiciary Subcommittee on the Administrative State received bipartisan support for renewing the pre-sunset eligibility limits.
