The 2,442 subchapter V elections within chapter 11 filed during the first nine months of 2026 increased 46% from the 1,672 filings during the same period in 2025, according to data provided by Epiq AACER, the leading provider of U.S. bankruptcy filing data. 

Key bankruptcy statistics from January 1 to September 30, 2026, include:

• 469,719 total bankruptcy filings, an 11% increase from the same period in 2025 (423,168).
• 444,252 individual bankruptcy filings, a 7% increase from 2025 (399,379).
• 282,413 individual chapter 7 filings, a 13% increase from 2025 (249,130).
• 160,817 individual chapter 13 filings, an 8% increase from 2025 (149,347).

“The continued increase in bankruptcy filings reflects the strain of higher borrowing costs, rising household expenses, growing consumer delinquencies, and a softer job market,” said Michael Hunter, Vice President of Epiq AACER. “As cost pressures mount, more small businesses are turning to Subchapter V to reorganize, and we expect filing volumes to keep climbing into 2027.”

Commercial filing activity from January 1 to September 30, 2026, include:

• 25,467 overall commercial filings, a 7% increase from 2025 (23,789).
• 6560 commercial chapter 11 filings, an 11% increase from 2025 (5895).

“The increase in bankruptcy filings, especially among small businesses, highlights the challenges many debtors continue to face amid persistent inflationary pressures, elevated borrowing costs, and economic uncertainty,” said Amy Quackenboss, Executive Director at the American Bankruptcy Institute (ABI). “Congress recently passed legislation that would permanently increase the eligibility limits for both subchapter V and chapter 13, expanding access for struggling businesses and families seeking bankruptcy relief.” 

The bipartisan Bankruptcy Threshold Adjustment Act (H.R. 7730), sponsored by Rep. Ben Cline (R-Va.), passed the Senate on September 28 and would permanently restore the Subchapter V debt eligibility limit to $7.5 million, reflecting the recommendations of ABI’s Subchapter V Task Force. The legislation also would increase the chapter 13 debt limit to $2.75 million and eliminate the distinction between secured and unsecured debt for eligibility purposes, consistent with reforms proposed by ABI’s Commission on Consumer Bankruptcy. H.R. 7730 has been sent to the president for signature. The Senate previously passed companion legislation, S. 3977, sponsored by Senators Charles Grassley (R-Iowa) and Dick Durbin (D-Ill.).