There were 539 commercial chapter 11 filings recorded in January 2025, a 16% increase from the 465 commercial chapter 11s in January 2024, according to data provided by Epiq AACER, a provider of U.S. bankruptcy filing data. Overall commercial bankruptcy filings rose 11% in January 2025, with the 2,358 filings ticking up from the 2,126 filings in January 2024. Small business filings, captured as subchapter V elections within chapter 11, increased 7% to 171 in January 2025, up slightly from 160 in January 2024.
Total bankruptcy filings increased 13% to 41,492 in January 2025 from the 36,629 filings recorded in January 2024. Individual bankruptcy filings also increased 13% in January to 39,134, up from the January 2024 individual filing total of 34,503. There were 22,938 individual chapter 7 filings in January 2025, a 17% increase over the 19,580 filings recorded in January 2024, and there were 16,087 individual chapter 13 filings in January 2025, an 8% increase over the 14,873 filings last January.
“Total bankruptcy filings continue to grow double digit percentages each month,” Michael Hunter, vice president of Epiq AACER, said. “The signs of consumer stress also have become more pronounced as credit card delinquency reach a 12-year high and the share of those active credit card holders making the minimum payments are at a 13-year high. I expect this growth trend to continue and then accelerate after tax season concludes into the summer months.”
“The pace of year-over-year increases for both small business subchapter V elections and consumer chapter 13 filings continues to taper following the expiration last year of enhanced debt limits for both filing categories,” Amy Quackenboss, executive director of the American Bankruptcy Institute, said. “We look forward to continuing to work with Congress to provide the data and research needed to demonstrate how higher debt-eligibility limits for small businesses and individuals creates greater access and a more efficient process for families and businesses looking for a financial fresh start.”
Compared to December, bankruptcy filings registered moderate fluctuations. Total bankruptcies increased 9% over December’s 38,130 filings, and consumer bankruptcies also edged up 9% over December’s total of 35,791. Individual chapter 7s increased 5%, and chapter 13s increased 17%, from December’s filings. Overall commercial filings increased 1% from the 2,339 filings registered in December. Conversely, commercial chapter 11s decreased 3% from December’s 553 filings, and subchapter V elections within chapter 11 decreased 9% from the 187 filed in December 2024.
