April Consumer Chapter 7 Bankruptcy Filings Increase 16 Percent from Previous Year
Total Bankruptcy Filings Increase 9 Percent
NEW YORK/ALEXANDRIA, VA. – May 2, 2025 — The 30,961 individual chapter 7 filings in April 2025 represented a 16 percent increase over the 26,781 filings recorded in April 2024, according to data provided by Epiq AACER, the leading provider of U.S. bankruptcy filing data.
Total individual bankruptcy filings increased 10 percent in April 2025, to 47,323, up from the April 2024 individual filing total of 43,030. The 16,246 individual chapter 13 filings in April 2025 represented a slight increase from the 16,175 individual chapter 13 filings last April.
“The 9 percent increase in total bankruptcy filings in April 2025, particularly the 16 percent surge in individual chapter 7 filings, reflects the mounting financial strain on households, elevated prices, and higher borrowing costs,” said Michael Hunter, Vice President of Epiq AACER. “While commercial filings have softened, the uptick in small business Subchapter V elections signals persistent distress among smaller businesses navigating an uncertain economic landscape.
“April 2025’s data underscores a continued rise in individual bankruptcies, with 47,323 filings driven by economic pressures like inflation and geopolitical uncertainties,” Hunter said. “Although commercial Chapter 11 filings declined, the 4 percent growth in subchapter V filings highlights the ongoing challenges for small businesses seeking relief, pointing to a broader need for accessible restructuring options.”
Total bankruptcy filings were 49,588 in April 2025, a 9 percent increase from the April 2024 total of 45,615. Conversely, total April commercial filings dipped 12 percent to 2,265 from the 2,585 total commercial filings the previous year. Commercial chapter 11 bankruptcy filings decreased 20 percent in April 2025, declining to 434 from the 542 filings registered in April 2024. Small business filings, however, captured as subchapter V elections within chapter 11, increased 4 percent in April 2025, to 218 from the 210 filings recorded in April 2024.
“While filings still remain below pre-pandemic levels, elevated prices, higher borrowing costs and uncertain geopolitical events compound the economic challenges faced by families and businesses,” said ABI Executive Director Amy Quackenboss. “We look forward to providing Congress with the research, information and statistics to re-establish higher debt thresholds for financially distressed small businesses and consumers to access the fresh start of bankruptcy.”
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 technology and services leader, takes on large-scale and complex tasks for corporate legal departments, law firms, and business professionals by integrating people, process, technology, and data. Clients rely on Epiq to streamline legal and compliance, settlement, and business administration workflows to drive efficiency, minimize risk, and improve cost savings. With a presence in 19 countries, our values define who we are and how we partner with clients and communities. Learn how Epiq’s approximately 8,000 people worldwide create meaningful change at 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.