NEW YORK– The number of distressed small businesses filing under subchapter V of chapter 11 of the U.S. Bankruptcy Code rose 17% in August to 200, up from 171 in August 2024, according to Epiq AACER, a provider of bankruptcy filing data.
Overall commercial bankruptcy filings decreased 3% in August 2025 to 2,541, down from 2,603 a year earlier. Commercial chapter 11 filings slipped 0.5% to 616 from 619.
Total U.S. bankruptcy filings rose 6% year over year, to 47,936 in August 2025 from 45,177 in August 2024. Individual bankruptcy filings increased 7% to 45,395 from 42,574.
The number of consumers filing for chapter 7 increased 10% to 28,053 from 25,427 in August 2024, while chapter 13 filings rose 1% to 17,232 from 17,068, Epiq AACER said.
‘Continues to Climb’
“As anticipated, bankruptcy filing volumes continue to climb, even as GDP shows growth and unemployment remains relatively stable,” Michael Hunter, vice president of Epiq AACER, said in a statement. “Notably, we are witnessing the longest sustained increase in total open case inventory since 2008—a clear indicator of shifting financial pressures. Looking ahead, we expect this upward trend to persist into 2026, as bankruptcy protection filings return to pre-pandemic levels. Key factors contributing to future uncertainty include the impact of tariffs, the resumption of student loan obligations, and interest rates.”
The Findings
- All bankruptcy filing categories in August decreased from July.
- August’s total filings fell 4% from July’s 49,650. Individual filings declined 3% from July’s 46,663.
- Commercial filings dropped 17% from July’s 3,017, while commercial chapter 11 filings fell 33% from July’s 913.
- Consumer chapter 7 filings decreased 4% from July’s 29,121, while chapter 13 filings dipped 1% from July’s 17,406.
