Commercial Chapter 11 bankruptcy filings rose 20% in March compared to the same month last year, increasing to 733 from 611, according to data from Epiq AACER, a leading provider of U.S. bankruptcy statistics.
Total commercial bankruptcy filings also rose 10% year-over-year in March, reaching 2,727. However, small business filings under subchapter V dipped slightly to 196, down 1% from 198 in March 2024.
“The 20 percent rise in commercial Chapter 11 filings to 733 in March 2025, up from 611 last year, signals persistent economic pressure, mirrored by a 10 percent increase in total commercial filings to 2,727,” said Michael Hunter, vice president at Epiq AACER.
Hunter noted that credit card delinquencies are nearing a 10-year high, driven by higher interest rates and rising consumer debt. FHA mortgage portfolios are also showing signs of stress, with delinquency rates climbing to 11%, surpassing pre-pandemic levels.
Government job cuts are adding to financial instability for some households, Hunter said, although small business subchapter V filings fell slightly. Total bankruptcy filings in March increased 13% to 50,189, up from 44,471 in March 2024. Individual bankruptcies rose to 47,462, also a 13% increase.
Chapter 7 filings among individuals jumped 18% year-over-year to 30,671. Chapter 13 filings rose 6% to 16,713.
“While overall bankruptcy filings increased in the past year, subchapter V elections by small businesses declined and the pace of consumer chapter 13 filing increases slowed,” said Amy Quackenboss, executive director of the American Bankruptcy Institute (ABI). “As both filing categories saw expanded debt eligibility limits expire last year, we look forward to working with Congress to re-establish higher debt thresholds to provide struggling small businesses and families greater access to the financial fresh start of bankruptcy.”
For the first quarter of 2025, total bankruptcy filings increased 10% to 131,998 from 120,135 in the same period last year. Consumer filings also rose 10%, while commercial bankruptcies rose 2%. However, total commercial Chapter 11 filings declined 7%, and subchapter V filings dropped 4%.
ABI and Epiq provide bankruptcy data through a joint initiative aimed at supporting analysts, researchers and media.
