According to data given by Epiq AACER, the total number of bankruptcy filings in October 2024 was 47,104, representing a 16% rise from the total of 40,674 in October 2023. In October 2024, there were 44,522 individual bankruptcy filings, which represents a 16% increase over the 38,278 filings in October 2023.
In October 2024, there were 17,091 individual chapter 13 files, an increase of 8% from the 15,874 filings in October of the previous year, and 27,358 individual chapter 7 filings, a 22% increase over the 22,351 filings in October 2023.
“We continue to observe a rise in overall filings, with notable increases in individual filings, reflecting the financial pressures faced by households,” said Michael Hunter, VP of Epiq AACER. “Factors such as higher consumer loan delinquency rates, increased interest rates, record-high national average mortgage payments, sharp increases in insurance premiums, and overall increased expenses are significantly impacting household budgets, driving the upward trend in bankruptcy filings.”
Bankruptcy Filings Rise YoY
The total number of commercial files rose from 2,396 in October 2023 to 2,582 in October 2024, an increase of 8%. Compared with 647 files in October 2023, there were 563 commercial chapter 11 filings in October 2024, a 13% decrease. The number of small business filings, which are classified as subchapter V elections under chapter 11, increased by 18% from 171 in October 2023 to 202 in October 2024.
“Elevated prices for goods and services, along with higher borrowing costs, compound the economic challenges faced by struggling families and businesses,” said ABI Executive Director Amy Quackenboss. “Access to bankruptcy is key to consumers and companies looking to alleviate their intensifying debt loads and have a chance for a financial fresh start.”
Compared to the 42,547 total bankruptcy files in September, the number of filings in October increased by 11%. Additionally, October’s total number of individual registrations increased by 11% over the 40,098 filings in September 2024. Compared to September’s filings, individual chapter 7s and chapter 13s grew by 14% and 7%, respectively.
The overall number of commercial files rose by 5% from 2,449 in September. Compared to the 165 filed in September 2024, the number of subchapter V elections inside chapter 11 grew by 22%.
On the other hand, the overall number of business chapter 11 filings fell by 24% from the 739 total filed in September 2024.
To read the full report, including more data, charts, and methodology, click here.
