The number of distressed small businesses electing to file for subchapter V of chapter 11 of the U.S. Bankruptcy Code increased 17 percent to 200 last month from the 171 registered in August 2024, according to data provided by Epiq AACER, the leading provider of U.S. bankruptcy filing data. Overall commercial bankruptcy filings decreased 3 percent in August 2025 to 2,541 from 2,603 in August 2024. Commercial chapter 11 filings in August 2025 decreased 0.5 percent to 616 from the 619 filings in August 2024.
The 47,936 total U.S. bankruptcy filings in August 2025 increased 6 percent from the August 2024 total of 45,177. Individual bankruptcy filings registered a 7 percent increase, to 45,395 in August 2025 from the August 2024 individual total of 42,574. The number of consumers filing for chapter 7 increased 10 percent to 28,053 in August 2025 from the 25,427 who filed for chapter 7 last August, while chapter 13 filings increased 1 percent to 17,232 in August 2025 from the 17,068 chapter 13 filings in August 2024.
“As anticipated, bankruptcy filing volumes continue to climb, even as GDP shows growth and unemployment remains relatively stable. Notably, we are witnessing the longest sustained increase in total open case inventory since 2008—a clear indicator of shifting financial pressures,” said Michael Hunter, vice president of Epiq AACER. “Looking ahead, we expect this upward trend to persist into 2026, as bankruptcy protection filings return to pre-pandemic levels. Key factors contributing to future uncertainty include the impact of tariffs, the resumption of student loan obligations, and interest rates.”
“While filings are still below pre-pandemic totals, financial challenges continue to accumulate for consumers and businesses amid an economic environment of elevated prices, higher borrowing costs and uncertain geopolitical activity,” said ABI Executive Director Amy Quackenboss. “Bankruptcy provides a proven process for struggling families and businesses wrestling with mounting debt to achieve a financial fresh start.”
All bankruptcy filing categories in August decreased from July. August’s total bankruptcy filings decreased 4 percent from July’s total of 49,650. Total individual filings for August dropped 3 percent from the July 2025 individual filing total of 46,663. Commercial filings registered a 17 percent decrease from the July 2025 commercial filing total of 3,017, and commercial chapter 11 filings declined 33 percent from the 913 filings in July 2025. Consumer chapter 7 filings decreased 4 percent from the 29,121 filings last month, while chapter 13 filings registered a 1 percent decline from the 17,406 chapter 13s filed in July 2025.