Bankruptcy filings rose 13.1% during the 12-month period ending March 31, 2025, according to data released by the Administrative Office of the U.S. Courts. Total filings reached 529,080, up from 467,774 in the prior year.
- Business filings rose 14.7%, from 20,316 to 23,309.
- Non-business filings increased 13.0%, from 447,458 to 505,771.
The big picture: While bankruptcy filings have climbed for nine consecutive quarters, totals remain well below the historic highs seen after the 2007-08 financial crisis, when filings peaked near 1.6 million in 2010. Filings bottomed out in mid-2022 at 380,634 cases but have steadily increased since.
By chapter: For the 12 months ending March 31, 2025:
- Chapter 7 filings: 320,571
- Chapter 11 filings: 8,844
- Chapter 12 filings: 259
- Chapter 13 filings: 199,130
Zoom in: April 2025 data, provided separately by Epiq AACER, shows the trend continuing:
- Total bankruptcy filings for April rose 9% year-over-year to 49,588.
- Individual Chapter 7 filings surged 16% year-over-year, from 26,781 to 30,961.
- Individual Chapter 13 filings in April ticked up slightly, from 16,175 to 16,246.
- Total individual bankruptcy filings increased 10%, reaching 47,323.
Small business distress:
- While total commercial filings fell 12% year-over-year in April, Subchapter V filings—used by small businesses under Chapter 11—increased 4%, indicating continued financial pressure on smaller enterprises.
- Commercial Chapter 11 filings decreased 20%, from 542 in April 2024 to 434 in April 2025.
What they’re saying: “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 at Epiq AACER.
Amy Quackenboss, Executive Director of the American Bankruptcy Institute, added that while filings remain below pre-pandemic levels, “elevated prices, higher borrowing costs and uncertain geopolitical events compound the economic challenges faced by families and businesses.”
Between the lines:
