Chapter 11 filings increase 42% YoY in April

April showers bring…bankruptcies?

The number of commercial chapter 11 bankruptcy filings this April (644) increased 42% from the 454 filed in April 2025, according to a recent release from Epiq AACER, which provides bankruptcy filing data.

Overall commercial filings climbed 21% to 3,060 this April compared with 2,520 filings in the same month last year.

Small businesses didn’t fare much better: Chapter 11 filings containing subchapter V elections, a simpler and less costly option for restructuring debts, jumped to 301 from 206 in April 2025. Legislation currently in Congress, the “Bankruptcy Threshold Adjustment Act of 2026,” would permanently increase the small business reorganization eligibility cap on debt to $7.5 million from its current $3.02 million.

“Rising inflation, higher borrowing costs, and geopolitical uncertainty are intensifying the financial strain on families and businesses,” Amy Quackenboss, executive director of the American Bankruptcy Institute, which co-released the report, said in a statement, noting that the ABI “appreciates the momentum building in Congress to permanently expand access for both distressed small businesses looking to restructure under subchapter V and for consumers looking to file for chapter 13,” a plan that lets an individual repay all or part of their debts over time.

The increase in subchapter V filings comes on the heels of a 67% YoY jump in the first quarter of 2026, to 833.

Total bankruptcy filings (businesses and individuals) climbed 14% YoY, per the April report, coming in at 56,427, the bulk of which (53,367) were individual filings.

“Individual bankruptcy filings are rising due to persistent pressures in consumer credit markets, where auto loan delinquencies remain near 15-year highs,” Michael Hunter, VP of Epiq AACER, said in the report. “These trends are further compounded by a 26% surge in foreclosure filings in Q1 2026.”