Subchapter V elections for small businesses increased 67% in the first quarter of 2026, as the 833 filings were up over the 499 registered during the first quarter of 2025, according to data provided by Epiq AACER, the leading provider of U.S. bankruptcy filing data. Total overall commercial bankruptcies increased 14% in the first quarter of 2026, as the 8,436 filings were up over the 7,375 commercial filings during the first quarter of 2025. The 2,422 total commercial chapter 11 filings increased 37% during the first quarter of 2026 from the 1,764 total commercial chapter 11s during the same period in 2025.
“The first-quarter numbers paint a clear picture: bankruptcy filings are up 14 percent overall, driven by a 67 percent jump in Subchapter V elections and solid increases in both commercial and consumer cases,” said Michael Hunter, Vice President of Epiq AACER. “This acceleration aligns with broader economic pressures, including household debt nearing $18.8 trillion and delinquency rates worsening to 4.8 percent across outstanding balances in late 2025, with notable upticks in credit card, mortgage, and student loan delinquencies amid persistent inflation and elevated interest rates.
"We are also seeing large pockets of concentrated increases within creditor portfolios, underscoring the need for proactive monitoring, which Epiq’s technology tools—including real-time portfolio monitoring for new filings, active-case alerts for key events, and comprehensive management and research platforms—track across the bankruptcy landscape."
The 150,009 total bankruptcy filings registered during the first calendar quarter of 2026 (Jan. 1 through March 31) represented a 14% increase over the 132,094 total first-quarter filings from the previous year.
“Persistent inflation, high interest rates, restricted credit, and global instability continue to compound the economic challenges of struggling families and small businesses,” said ABI Executive Director Amy Quackenboss. “ABI supports the efforts of 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.”
Legislation introduced recently by Sen. Chuck Grassley (R-Iowa) in the Senate and Rep. Ben Cline (R-Va.) in the House of Representatives would permanently increase the debt eligibility limit to $7.5 million for small businesses looking to restructure under the streamlined process of subchapter V. The legislation would also raise the debt limit for individual chapter 13 filings to $2.75 million and removes the distinction between secured and unsecured debt for that calculation.
Subchapter V elections within chapter 11 increased 48% in March 2026 to 271 from the 183 filings recorded in March 2025. Conversely, commercial chapter 11 bankruptcy filings decreased 11% in March 2026, with filings slipping to 649 from the 733 filings registered in March 2025. (Note: March 2026 saw only 166 related filings by corporate subsidiaries, compared to 307 such cases in March 2025.) Total March commercial filings increased 5% to 2,897 from the 2,767 commercial filings the previous year.
Total bankruptcy filings were 58,278 in March 2026, a 16 percent increase from the March 2025 total of 50,237. Individual bankruptcy filings increased 17% in March 2026, to 55,381, up from the March 2025 individual filing total of 47,470. There were 36,784 individual chapter 7 filings in March 2026, a 20% increase over the 30,664 filings recorded in March 2025. The 18,478 individual chapter 13 filings in March 2026 represented a 10% increase from the 16,729 individual chapter 13 filings last March.