According to data from the top source of U.S. bankruptcy file data, Epiq AACER, commercial chapter 11 bankruptcy filings fell 42% in February 2025, from 826 filings in February 2024 to 481 filings in February 2025.
The associated filings of two sizable commercial chapter 11 proceedings increased the total from last February. Additionally, because 2024 was a leap year, February 2025 had one fewer working day than the previous year.
Compared to the 2,576 commercial registrations in February 2024, the total number of February commercial filings dropped by 16 percent to 2,152. In February 2025, small business filings—which are recorded as subchapter V elections under chapter 11—dropped 12% to 176 from 201 the year before.
“The overall filing volume trend waned in February, primarily due to fewer filing days and a typical trend of filings after tax return season,” said Michael Hunter, VP of Epiq AACER. “The availability and increased utilization of home equity has enabled homeowners to leverage that value to temporarily offset higher living costs. I expect a continued trend of increased filings through the spring and summer months primarily due to continued increases in living costs, debt accumulation, relatively flat household income growth, and influences related to regulatory change.”
In February 2025, there were 40,260 bankruptcy files overall, up 3% from the 39,034 cases in February 2024. Individual bankruptcy filings rose from 36,458 in February 2024 to 38,108 in February, a 5% increase. In February 2025, 22,899 individual chapter 7 files were made, which is 8% more than the 21,151 submissions that were made in February 2024. On the other hand, February 2025 saw 15,128 individual chapter 13 filings, a 1% drop from the 15,247 files in February of the previous year.
“Inflation, elevated interest rates, tighter lending terms and geopolitical tensions are creating more challenges for distressed consumers and businesses looking to alleviate their growing debt loads,” said Amy Quackenboss, ABI Executive Director. “Bankruptcy provides an established process for struggling households and businesses looking to access a financial fresh start.”
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