According to data from the top source of U.S. bankruptcy file data, Epiq AACER, commercial chapter 11 bankruptcy filings rose 20% in March 2025, from 611 filings in March 2024 to 733 filings in March 2025. The total number of commercial files for March rose by 10% to 2,727 from 2,477 the year before. The number of small business filings, which are classified as Subchapter V elections under chapter 11, dropped from 198 in March 2024 to 196 in March 2025, a 1% decline.
“The 20% rise in commercial Chapter 11 filings to 733 in March 2025, up from 611 last year, signals persistent economic pressure, mirrored by a 10% increase in total commercial filings to 2,727,” said Michael Hunter, VP of Epiq AACER. “Meanwhile, credit card delinquencies have hit a near 10-year high, driven by rising interest rates and consumer debt burdens.”
In March 2025, there were 50,189 bankruptcy files overall, up 13% from the 44,471 filed in March 2024. The number of individual bankruptcy filings rose from 41,994 in March 2024 to 47,462 in March 2025, a 13 percent rise. The number of individual chapter 7 filings increased by 18% from 26,102 in March 2024 to 30,671 in March 2025. March 2025 saw 16,713 individual chapter 13 filings, up 6% from the previous March’s 15,840 individual chapter 13 filings.
“In the FHA mortgage portfolio, we’re seeing elevated recidivism, with delinquency rates climbing to 11%, surpassing pre-pandemic levels as borrowers exiting forbearance face renewed strain,” Hunter said. “Adding to this, government job layoffs threaten to exacerbate financial instability for federal workers reliant on stable income to service debts. While small business subchapter V filings dipped 1% to 196, the broader 13% surge in total bankruptcies to 50,189 reflects a complex landscape where data-driven insights are vital for navigating distress across sectors.”
Additional Findings:
- Compared to the 120,135 total first-quarter filings from the prior year, the 131,998 total bankruptcy cases filed during the first calendar quarter of 2025 (January 1 through March 31) showed a 10% rise.
- In Q1 of 2025, there were 124,696 consumer registrations, up 10% from the 112,949 that occurred in the same period in 2024.
- Compared to the 66,831 individual chapter 7 filings made during the same period in 2024, there were 76,501 individual chapter 7 filings in Q1 of 2025, a 14% increase.
- In Q1 of 2025, there were 47,928 individual chapter 13 filings, which is 4% more than the 45,956 individual chapter 13 filings during the same period in 2024.
“While overall bankruptcy filings increased in the past year, subchapter V elections by small businesses declined and the pace of consumer chapter 13 filing increases slowed,” said ABI Executive Director Amy Quackenboss. “As both filing categories saw expanded debt eligibility limits expire last year, we look forward to working with Congress to re-establish higher debt thresholds to provide struggling small businesses and families greater access to the financial fresh start of bankruptcy.”
In conclusion, compared to the 7,186 commercial files in the first quarter of 2024, the 7,302 filings in the first quarter of 2025 represented a minor rise of 2% in the total number of commercial bankruptcies. However, compared to the 1,902 total commercial chapter 11 filings during the same period in 2024, the 1,760 total filings during the first quarter of 2025 represented a 7% decrease. In Q1 2025, there were 535 files for small business Subchapter V elections, a 4% decrease from the 559 filings in Q1 2024.
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