The 6,067 total commercial chapter 11 bankruptcies filed during the first nine months of 2024 represented a 36% increase over the 4,561 filed during the same period in 2023, according to Epiq AACER, a provider of U.S. bankruptcy filing data.

“As we close out the third quarter in 2024, we continue to see a steady increase in both individual and commercial filings this year to date. The recent Fed rate cut (and signal for further cuts) spurred by slowing job gains and an increase in the unemployment rate leads me to believe the steady increase in those seeking bankruptcy protection will continue through 2024 and into 2025,” Michael Hunter, vice president of Epiq AACER, said. “The recent devastation from hurricane Helene in the Southeast, current geopolitical conflicts and a potential for large supply chain impacts (duration of strike) will all influence bankruptcy volumes in the months ahead.”

Overall commercial filings registered 22,550 for the first nine months of 2024, representing a 20% increase from the commercial filing total of 18,774 during the same period in 2023. Small business filings, captured as subchapter V elections within chapter 11, totaled 1,837 in the first nine months of 2024, a 41% increase from the 1,303 elections during the same period in 2023. A large portion of the increase in subchapter V filings took place prior to the debt eligibility limit being reset on June 21 from $7.5 million to just over $3 million. Since that date, the monthly pace of small businesses electing to restructure under subchapter V has slowed considerably.

Total bankruptcy filings were 383,182 during the first nine months of 2024, a 15% increase from the 332,213 total filings during the same period a year ago. Total individual filings also registered a 15% increase year-to-date to 360,632 filings, up from the 313,439 filings during the first nine months of 2023. The 143,177 individual chapter 13 filings in the first nine months of 2024 represented a 9% increase over the 131,230 filings during the same period in 2023. Individual chapter 7 filings increased 19% to 216,831 from the 181,703 filed in the first nine months of 2023.

“As filings steadily increase toward pre-pandemic levels, potential economic challenges continue to mount for distressed consumers and businesses,” Amy Quackenboss, executive director of American Bankruptcy Institute, said. “Amid the resumption of student loan payments, renewed concerns regarding supply chains and growing geopolitical tensions, bankruptcy provides the opportunity for a fresh start for financially overwhelmed families and companies.”

All chapters increased in September 2024 compared to September 2023. Overall commercial filings increased 9% to 2,422 from 2,225 in 2023. September 2024 commercial chapter 11s increased 26% to 734 from 585 in September 2023. Total subchapter V elections within chapter 11 increased 9% to 167 in September 2024 from 153 in September 2023.

The 42,532 total bankruptcy filings in September 2024 represented an increase of 14% from the 37,360 filed in September 2023. Total individual filings were also up 14%, to 40,110 from 35,135. The 24,096 individual chapter 7 filings in September 2024 increased 22% over the 19,789 filings in September 2023. Individual chapter 13s were up 4% in September 2024 to 15,946 from 15,287 the previous year.