Commercial Chapter 11 bankruptcy filings fell 42% in February 2025, dropping to 481 from 826 in the same month last year, according to data from Epiq AACER. The decline is attributed in part to two major filings in February 2024 and one fewer business day this year due to 2024’s leap year.

Overall commercial bankruptcy filings decreased 16% year-over-year to 2,152, while small business filings under Subchapter V of Chapter 11 declined 12% to 176. Meanwhile, total bankruptcy filings increased 3% to 40,260, driven by a 5% rise in individual bankruptcies. Chapter 7 filings climbed 8% to 22,899, while Chapter 13 filings saw a slight 1% decline to 15,128.

“The overall filing volume trend waned in February, primarily due to fewer filing days and a typical trend of filings after tax return season,” Michael Hunter, vice president of Epiq AACER, said. “The availability and increased utilization of home equity has enabled homeowners to leverage that value to temporarily offset higher living costs. I expect a continued trend of increased filings through the spring and summer months primarily due to continued increases in living costs, debt accumulation, relatively flat household income growth, and influences related to regulatory change.”

Total bankruptcy filings were 40,260 in February 2025, a 3 percent increase from the February 2024 total of 39,034. Individual bankruptcy filings increased 5 percent in February to 38,108, up from the February 2024 individual filing total of 36,458. There were 22,899 individual chapter 7 filings in February 2025, an 8 percent increase over the 21,151 filings recorded in February 2024. Conversely, there were 15,128 individual chapter 13 filings in February 2025, a 1 percent decrease from the 15,247 filings last February.

“Inflation, elevated interest rates, tighter lending terms and geopolitical tensions are creating more challenges for distressed consumers and businesses looking to alleviate their growing debt loads,” Amy Quackenboss, executive director of ABI said. “Bankruptcy provides an established process for struggling households and businesses looking to access a financial fresh start.”

Epiq Bankruptcy, in partnership with ABI, provides up-to-date bankruptcy filing data through its Bankruptcy Analytics service.