Commercial bankruptcies in the United States experienced a significant increase in 2024, according to data from Epiq AACER. Chapter 11 filings jumped 20% to 7,879, while overall commercial filings rose 17% to 30,009. This surge reflects the ongoing impact of economic challenges, including persistent inflation, increasing geopolitical tensions, and shifts in post-pandemic consumer spending.

Small business Subchapter V elections within Chapter 11 also experienced a substantial increase in calendar year 2024, as the 2,381 filings represented a 32% increase from the 1,808 recorded in 2023. We note that the pace of Subchapter V and consumer Chapter 13 filing increases slowed after enhanced debt limits for both filing categories expired on June 21, 2024.

While some relief came in September when the Federal Reserve began lowering its benchmark interest rate from a 20-year high, the central bank’s monetary easing may slow in 2025.

“As anticipated, we saw a steady increase in bankruptcy filings throughout 2024 and expect that growth trend to continue throughout 2025,” Michael Hunter, vice president of Epiq AACER, said. “If the current trend continues, new bankruptcy filings will return to pre-pandemic normalized volumes over the next 24-30 months.”

Sector Breakdown

The consumer discretionary and industrials sectors witnessed the highest number of bankruptcies, followed by healthcare and consumer staples. The consumer discretionary sector, despite strong overall retail sales, has been particularly vulnerable to economic headwinds as consumer spending patterns have shifted and budgets have tightened due to inflation.

Largest Bankruptcies in 2024

Headwinds from persistent inflation, shifting consumer spending patterns following the pandemic, and ongoing geopolitical tensions are likely to continue driving companies into bankruptcy throughout 2025. We track filings in our covered universe, which can be found at https://eprofitguard.com/bankruptcy-list/.