January Chapter 11 Commercial Filings Increase 16 Percent Over Last Year
Total Bankruptcy Filings Increase 13 Percent
NEW YORK/ALEXANDRIA – Feb. 4, 2025 —There were 539 commercial chapter 11 filings recorded in January 2025, a 16 percent increase from the 465 commercial chapter 11s in January 2024, according to data provided by Epiq AACER, the leading provider of U.S. bankruptcy filing data. Overall commercial bankruptcy filings rose 11 percent in January 2025, with the 2,358 filings ticking up from the 2,126 filings in January 2024. Small business filings, captured as subchapter V elections within chapter 11, increased 7 percent to 171 in January 2025, up slightly from 160 in January 2024.
Total bankruptcy filings increased 13 percent to 41,492 in January 2025 from the 36,629 filings recorded in January 2024. Individual bankruptcy filings also increased 13 percent in January to 39,134, up from the January 2024 individual filing total of 34,503. There were 22,938 individual chapter 7 filings in January 2025, a 17 percent increase over the 19,580 filings recorded in January 2024, and there were 16,087 individual chapter 13 filings in January 2025, an 8 percent increase over the 14,873 filings last January.
“Total bankruptcy filings continue to grow double digit percentages each month,” said Michael Hunter, Vice President of Epiq AACER. “The signs of consumer stress also have become more pronounced as credit card delinquency reach a 12-year high and the share of those active credit card holders making the minimum payments are at a 13-year high. I expect this growth trend to continue and then accelerate after tax season concludes into the summer months."
“The pace of year-over-year increases for both small business subchapter V elections and consumer chapter 13 filings continues to taper following the expiration last year of enhanced debt limits for both filing categories,” said ABI Executive Director Amy Quackenboss. "We look forward to continuing to work with Congress to provide the data and research needed to demonstrate how higher debt-eligibility limits for small businesses and individuals creates greater access and a more efficient process for families and businesses looking for a financial fresh start.”
Compared to December, bankruptcy filings registered moderate fluctuations. Total bankruptcies increased 9 percent over December’s 38,130 filings, and consumer bankruptcies also edged up 9 percent over December’s total of 35,791. Individual chapter 7s increased 5 percent, and chapter 13s increased 17 percent, from December’s filings. Overall commercial filings increased 1 percent from the 2,339 filings registered in December. Conversely, commercial chapter 11s decreased 3 percent from December’s 553 filings, and subchapter V elections within chapter 11 decreased 9 percent from the 187 filed in December 2024.
ABI has partnered with Epiq Bankruptcy to provide the most current bankruptcy filing data for analysts, researchers, and members of the news media. Epiq Bankruptcy is the leading provider of data, technology, and services for companies operating in the business of bankruptcy. Its Bankruptcy Analytics subscription service provides on-demand access to the industry’s most dynamic bankruptcy data, updated daily. Learn more at https://bankruptcy.epiqglobal.com/analytics.
About Epiq
Epiq, a global technology-enabled services leader to the legal industry and corporations, takes on large-scale, increasingly complex tasks for corporate counsel, law firms, and business professionals with efficiency, clarity, and confidence. Clients rely on Epiq to streamline the administration of business operations, class action and mass tort, court reporting, eDiscovery, regulatory, compliance, restructuring, and bankruptcy matters. Epiq subject-matter experts and technologies create efficiency through expertise and deliver confidence to high-performing clients around the world. Learn more at https://www.epiqglobal.com.
About ABI
ABI is the largest multi-disciplinary, nonpartisan organization dedicated to research and education on matters related to insolvency. ABI was founded in 1982 to provide Congress and the public with unbiased analysis of bankruptcy issues. The ABI membership includes nearly 10,000 attorneys, accountants, bankers, judges, professors, lenders, turnaround specialists and other bankruptcy professionals, providing a forum for the exchange of ideas and information. For additional information on ABI, visit www.abi.org. For additional conference information, visit http://www.abi.org/calendar-of-events.