Individual Chapter 7 bankruptcy filings rose 16% in April compared to the same month last year, as Americans continued to face mounting financial stress, according to data released May 2 by Epiq AACER.

The 30,961 Chapter 7 filings marked a sharp increase over the 26,781 reported in April 2024. Total individual bankruptcy filings climbed 10% to 47,323, up from 43,030 a year earlier. Chapter 13 filings remained relatively flat, inching up to 16,246 from 16,175.

“The 9 percent increase in total bankruptcy filings in April 2025, particularly the 16 percent surge in individual chapter 7 filings, reflects the mounting financial strain on households, elevated prices, and higher borrowing costs,” said Michael Hunter, vice president at Epiq AACER.

Total bankruptcy filings across all categories reached 49,588 in April, a 9% year-over-year increase. However, commercial filings dropped 12% to 2,265. Commercial Chapter 11 filings fell 20%, but Subchapter V filings for small businesses rose 4% to 218.

“While filings still remain below pre-pandemic levels, elevated prices, higher borrowing costs and uncertain geopolitical events compound the economic challenges faced by families and businesses,” said Amy Quackenboss, executive director of the American Bankruptcy Institute (ABI).

Epiq AACER and ABI partner to provide monthly bankruptcy data used by analysts, researchers, and policymakers. Full data is available through Epiq’s Bankruptcy Analytics platform.