Commercial chapter 11 bankruptcy filings decreased 42 percent in February 2025, with the 481 filings declining from the 826 filings in February 2024, according to data provided by Epiq AACER, the leading provider of U.S. bankruptcy filing data. Last February’s commercial chapter 11 total was elevated by the related filings of two sizeable commercial chapter 11 proceedings. Additionally, there was one less business day in February 2025 compared to last year due to the leap year taking place in 2024.
Total February commercial filings decreased 16 percent to 2,152 from the 2,576 commercial filings in February 2024. Small business filings, captured as subchapter V elections within chapter 11, declined 12 percent in February 2025 to 176, down from 201 the previous year.
“The overall filing volume trend waned in February, primarily due to fewer filing days and a typical trend of filings after tax return season,” said Michael Hunter, Vice President of Epiq AACER. “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,” said ABI Executive Director Amy Quackenboss. “Bankruptcy provides an established process for struggling households and businesses looking to access a financial fresh start.”