According to data from Epiq AACER, there were 30,961 individual chapter 7 applications in April 2025, which was an estimated 16% increase over the 26,781 submissions in April 2024.
“The 9% increase in total bankruptcy filings in April 2025, particularly the 16% surge in individual chapter 7 filings, reflects the mounting financial strain on households, elevated prices, and higher borrowing costs,” said Michael Hunter, VP 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.”
Per the recent report, the overall number of individual bankruptcy filings rose from 43,030 in April 2024 to 47,323 in April 2025—an estimated 10% rise. Compared to the 16,175 individual chapter 13 applications in April of last year, there were 16,246 individual chapter 13 filings in April of 2025.
“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% growth in subchapter V filings highlights the ongoing challenges for small businesses seeking relief, pointing to a broader need for accessible restructuring options.”
Key Highlights:
- In April 2025, there were 49,588 bankruptcy filings overall, which was 9% more than the 45,615 filings in April 2024.
- In contrast, the overall number of commercial files in April decreased by 12% to 2,265 from 2,585 in the prior year.
- In April 2025, the number of commercial chapter 11 bankruptcy filings dropped by 20%, from 542 in April 2024 to 434 in April 2025.
- However, the number of small business registrations recorded as subchapter V elections under chapter 11 rose from 210 in April 2024 to 218 in April 2025—a 4% increase.
“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 Amy Quackenboss, Executive Director for ABI. “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.”
To read the full report, click here.
