Overall commercial filings decreased 1% to 2,445 in November 2024, down from the 2,461 commercial filings registered in November 2023. Small business filings, captured as subchapter V elections within chapter 11, increased 28% to 206 in November 2024, up from 161 in November 2023. November commercial chapter 11 filings were 680, a decrease of 22% from the 865 filings registered in November 2023.
“The velocity of new filings in November 2024 was down slightly from prior months, as expected, due to fewer business days and the holiday season,” Michael Hunter, vice president of Epiq AACER, said. “The recent rise of default rates in consumer loans, particularly credit cards and auto loans, reflect continued financial stress among households. We anticipate the velocity of new filings to increase once the holiday season concludes and expect the new administration’s planned regulatory changes to influence filings into 2025.”
Total individual chapter 7 filings in November 2024 were 22,886, a 14% increase over the 20,149 filings recorded in November 2023, according to data provided by Epiq AACER, a provider of U.S. bankruptcy filing data.
Total bankruptcy filings were 40,271 in November 2024, a 6% increase from the November 2023 total of 37,907. Overall individual bankruptcy filings registered a 7% year-over-year increase, as the 37,826 filings in November 2024 represented an increase over the 35,446 individual bankruptcy filings in November 2023. The 14,858 individual chapter 13 filings in November 2024, however, represented a 3% decrease from the 15,241 filings the previous November.
“Elevated interest rates, tougher lending terms and increased geopolitical tensions continue to impact the balance sheets of many struggling businesses and families,” Amy Quackenboss, executive director of the American Bankruptcy Institute, said. “While still below the levels recorded prior to the pandemic, the steady growth in filings reflects the growing financial challenges faced by distressed companies and consumers.”
Most categories of bankruptcy filings typically drop from October to November due to fewer business days and the Thanksgiving holiday in November. Total and consumer bankruptcies both decreased 15% when compared to their respective October filing totals of 47,114 for total filings and 44,515 for consumer filings. Individual chapter 7s decreased 16%, and chapter 13s decreased 13%, from October’s filings. Overall commercial filings decreased 7% from the 2,598 filings registered in October. Commercial chapter 11s did increase 20% from October’s 565 filings, and subchapter V elections within chapter 11 increased 2% from the 201 filed in October 2024.
