Newly released data shows a significant rise in bankruptcy filings across the U.S., with commercial businesses seeing some of the steepest increases.
Rising Commercial Filings
In July 2025, total commercial bankruptcy filings rose 26 percent compared to July 2024. This increase was driven largely by a 78 percent jump in commercial chapter 11 filings, as more companies seek restructuring tools to address mounting financial pressures.
Small businesses were also impacted. Subchapter V elections, which provide a more streamlined chapter 11 process for small enterprises, climbed 30 percent year-over-year—highlighting the ongoing strain faced by entrepreneurs and local business owners.
Consumer Filings See Growth as Well
The overall bankruptcy filing rate—both commercial and noncommercial—rose 12 percent in July compared to the prior year. Noncommercial filings reached 46,617, an 11 percent increase from July 2024. Within this group:
- Chapter 7 consumer filings increased by 13 percent.
- Chapter 13 consumer filings grew by 7 percent.
These figures suggest rising financial stress among households, likely driven by inflation, higher interest rates, and broader economic challenges.
What This Means for Businesses and Consumers
The increases across both business and personal filings underscore the importance of understanding available financial and legal protections. For companies, chapter 11 and subchapter V may offer opportunities to restructure debt and preserve operations. For individuals and families, chapters 7 and 13 remain vital tools for regaining financial stability.
