Chapter 11 Bankruptcies Jump 42% in April

Epiq bankruptcy data shows growing financial strain on businesses and consumers as economic pressures continue to build.

Commercial chapter 11 bankruptcy filings surged 42% in April compared to the same month last year, reflecting mounting financial pressure across both businesses and households, according to new data from Epiq AACER — the leading provider of U.S. bankruptcy filing data — and the American Bankruptcy Institute (ABI).

The 644 commercial chapter 11 filings recorded in April 2026 were up from 454 filings in April 2025, while overall commercial filings increased 21% year over year to 3,060. Small business filings climbed 46% during the same period.

Total bankruptcy filings across all categories reached 56,427 this past April, representing a 14% increase from April 2025. Individual bankruptcy filings also continued to rise, up 13% year over year. Chapter 7 filings rose 14%, while chapter 13 filings increased 11%.

“Individual bankruptcy filings are rising due to persistent pressures in consumer credit markets, where auto loan delinquencies remain near 15-year highs,” said Michael Hunter, vice president of Epiq AACER, in an ABI news release. “These trends are further compounded by a 26% surge in foreclosure filings in Q1 2026. Higher gas prices are straining consumer goods and household budgets, while continued home appreciation is pushing up property taxes and homeowners’ insurance costs. These headwinds may intensify and drive even more families toward chapter 7 and chapter 13 protection in the coming months.”

The report also showed a sharp increase in chapter 12 bankruptcies, which are designed specifically for family farms and fisheries. Chapter 12 filings jumped 130% year over year in April, reaching their highest monthly total since February 2020.

“Rising inflation, higher borrowing costs and geopolitical uncertainty are intensifying the financial strain on families and businesses,” said Amy Quackenboss, ABI executive director. “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.”

The report noted that bipartisan legislation continues to move through Congress that would raise debt eligibility thresholds for both subchapter V business restructurings and chapter 13 consumer filings.

While overall bankruptcy filings dropped slightly compared to March 2026 totals, commercial filings and subchapter V elections both increased month over month, signaling continued stress within the business sector.