Commercial chapter 11 bankruptcy filings increased 20 percent in March 2025, with filings climbing to 733 from the 611 filings registered in March 2024, according to data provided by Epiq AACER, the leading provider of U.S. bankruptcy filing data. Total March commercial filings increased 10 percent to 2,727 from the 2,477 commercial filings the previous year. Small business filings, captured as subchapter V elections within chapter 11, decreased 1 percent in March 2025, to 196 from the 198 filings recorded in March 2024.
“The 20 percent rise in commercial Chapter 11 filings to 733 in March 2025, up from 611 last year, signals persistent economic pressure, mirrored by a 10 percent increase in total commercial filings to 2,727,” said Michael Hunter, Vice President of Epiq AACER. “Meanwhile, credit card delinquencies have hit a near 10-year high, driven by rising interest rates and consumer debt burdens.
“In the FHA mortgage portfolio, we’re seeing elevated recidivism, with delinquency rates climbing to 11 percent, surpassing pre-pandemic levels as borrowers exiting forbearance face renewed strain,” Hunter said. “Adding to this, government job layoffs threaten to exacerbate financial instability for federal workers reliant on stable income to service debts. While small business subchapter V filings dipped 1 percent to 196, the broader 13 percent surge in total bankruptcies to 50,189 reflects a complex landscape where data-driven insights are vital for navigating distress across sectors.”
Total bankruptcy filings were 50,189 in March 2025, a 13 percent increase from the March 2024 total of 44,471. Individual bankruptcy filings also increased 13 percent in March 2025, to 47,462, up from the March 2024 individual filing total of 41,994. There were 30,671 individual chapter 7 filings in March 2025, an 18 percent increase over the 26,102 filings recorded in March 2024. The 16,713 individual chapter 13 filings in March 2025 represented a 6 percent increase from the 15,840 individual chapter 13 filings last March.
“While overall bankruptcy filings increased in the past year, subchapter V elections by small businesses declined and the pace of consumer chapter 13 filing increases slowed,” said ABI Executive Director Amy Quackenboss. “As both filing categories saw expanded debt eligibility limits expire last year, we look forward to working with Congress to re-establish higher debt thresholds to provide struggling small businesses and families greater access to the financial fresh start of bankruptcy.”
The 131,998 total bankruptcy filings registered during the first calendar quarter of 2025 (Jan. 1 through March 31) represented a 10 percent increase over the 120,135 total first-quarter filings from the previous year. Consumer filings also increased 10 percent, to 124,696 filings in the first quarter of 2025 from the 112,949 consumer filings during the same period in 2024. Individual chapter 7 filings during the first quarter of 2025 were 76,501, a 14 percent increase over the 66,831 individual chapter 7 filings during the same period in 2024. Individual chapter 13 filings during the first quarter of 2025 were 47,928, a 4 percent increase over the 45,956 individual chapter 13 filings in the same period of 2024.
Total overall commercial bankruptcies increased 2 percent in the first quarter of 2025, as the 7,302 filings were up slightly over the 7,186 commercial filings during the first quarter of 2024. Conversely, the 1,760 total commercial chapter 11 filings were down 7 percent during the first quarter of 2025 from the 1,902 total commercial chapter 11s during the same period in 2024. Subchapter V elections for small businesses were down 4 percent to 535 filings in Q1 2025 from the 559 filed during Q1 2024.