Looming Economic Concerns Drive Up Commercial Chapter 11 Filings 

In comparison to the same period last year, originations of commercial and multifamily mortgage loans grew 42% from Q1 of 2025 and decreased 40% from Q4 of 2024, according to the Mortgage Bankers Association‘s (MBA) Quarterly Survey of Commercial/Multifamily Mortgage Bankers Originations.

However, according to data from Epiq AACER, there were approximately 733 commercial chapter 11 applications in May, a 62% rise from the 453 filings in April. Further, the total number of commercial filings in May was 2,695, which was 8% more than the total number of commercial filings in April 2025 (2,489). In May 2025, small business filings—which are recorded as subchapter V elections under chapter 11—rose 3% to 228 from 223 the month before.

“The sharp uptick in overall commercial chapter 11 filings in May 2025 underscores the ongoing economic pressures businesses face, from elevated borrower costs, potential tariff impacts and geopolitical uncertainty,” said Michael Hunter, VP of Epiq AACER. “Meanwhile, consumer filings continue to climb yet remain below pre-pandemic levels; however, the resumption of student loan collections and the expiration of the FHA modification programs are likely to drive further increases in filings, particularly through the end of 2025 and into 2026.”

Painting the Counterpoint to Bankruptcy

Declining listing rates and rising vacancy levels continue to be problems for central business districts (CBDs). Initiatives from the federal government that direct attention toward suburban areas present yet another challenge to the post-pandemic restructuring, according to CommercialEdge.

“Every market is unique and nuanced, but the overarching trend that downtowns are struggling with less office workers and higher office vacancy is consistent across the country,” said Peter Kolaczynski, Director of CommercialEdge.

A new Executive Order, “Restoring Common Sense to Federal Office Space,” that President Trump signed last month, revoking two earlier orders from Presidents Carter and Clinton that gave priority to CBDs when choosing locations for federal offices were canceled by the order. The new directive seeks to enable agencies “to select cost-effective facilities and focus on successfully carrying out their missions for American taxpayers,” citing expensive and wasteful procedures.

Commercial Chapter 11 Filings Up As Economy Remains Uncertain

The overall number of bankruptcy files in May was 48,218; this was a 3% drop from the 49,610 filings in April. Additionally, May’s 45,523 noncommercial submissions were 3% fewer than the 47,121 noncommercial filings in April 2025. While consumer chapter 13 filings rose 3% to 16,694 from 16,198 in April, consumer chapter 7 filings had an estimated 7% decline to 28,716 from 30,823.

U.S. Highlights — National
  • From 2,664 commercial filings in May 2024 to 2,695 in May, there was a minor 1% rise in total commercial filings.
  • In May, there were 733 commercial chapter 11 filings, which was a 4% reduction from the 765 applications recorded in May 2024.
  • In May 2025, there were 48,218 filings for bankruptcy in the U.S., up 7% from 45,025 in May 2024.
  • In May 2025, there were 45,523 noncommercial bankruptcy filings, up 7% from the 42,361 noncommercial filings in May 2024.
  • Consumers who filed for chapter 7 climbed by 11% to 28,716 in May 2025 from 25,773 the previous year
  • Those who filed for chapter 13 increased by 1% to 16,694 in May 2025 from 16,507 in May 2024.

“The current financial landscape presents struggling businesses and consumers with additional challenges of elevated prices, higher borrowing costs and uncertain geopolitical events,” said ABI Executive Director Amy Quackenboss. “Bankruptcy provides a proven process to a financial fresh start for distressed businesses and families.”

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Picture of Demetria C. Lester

Demetria C. Lester

Demetria C. Lester is a reporter for MortgagePoint (formerly DS News and MReport) with more than 10 years of writing and editing experience. She has served as content coordinator and copy editor for the Los Angeles Daily News and the Orange County Register, in addition to 11 other Southern California publications. A former editor-in-chief at Northlake College and staff writer at her alma mater, the University of Texas at Arlington, she has covered events such as the Byron Nelson and Pac-12 Conferences, progressing into her freelance work with the Dallas Wings and D Magazine. Currently located in Dallas, Lester is a jazz aficionado, Harry Potter fanatic, and avid record collector. She can be reached at demetria.lester@thefivestar.com.
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