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April 2026 Bankruptcy Filings Hold Firm After March Surge

 

U.S. bankruptcy filings totaled 56,442 in April 2026, down 1,901 filings from the prior month and up 6,716 from April 2025, a 13.5% year-over-year increase.

April is typically a softer month for filings, so some pullback was expected. What stands out is that the decline was relatively modest, leaving April at its highest level for the month since 2019 and giving Q2 a stronger start than recent quarters.

April also offers another useful measure of where the market stands. Filings were still 18.90% below the pre-Covid April average based on the 2017-2019 baseline. That means volumes have not fully returned to earlier cycle norms, but the gap continues to narrow.

 

Key Takeaways

  • Total filings: 56,442
  • Month over month: -1,901, or -3.26%
  • Year over year: +6,716, or +13.51%
  • Highest April total since: 2019
  • Q2 opening month vs. Q1 opening month: +23.14%
  • Q2 opening month vs. April 2025: +13.51%
  • Vs. pre-Covid April average (2017-2019): 18.90% below

 

Consumer Chapters Continue to Drive the Filing Base

April remained concentrated in the same two chapters that have shaped the broader filing trend in recent months.

  • Chapter 7: 37,038 filings (65.6%)
  • Chapter 13: 18,547 filings (32.9%)
  • Chapter 11: 742 filings (1.3%)
  • Subchapter V: 293 filings (0.5%)

Together, Chapter 7 and Chapter 13 accounted for 98.5% of all April filings.

Both of the large consumer chapters moved lower month over month. Chapter 7 declined by 1,518 filings, or 3.94%, and Chapter 13 declined by 445, or 2.34%. Chapter 11 was essentially flat, while Subchapter V increased modestly. That tells us the monthly change came mainly from consumer-volume adjustment rather than a broader shift across all filing types.

The filing mix also continued to shift toward Chapter 7. After starting the year at roughly a 60/38 split between Chapter 7 and Chapter 13, the mix moved to about 66/33 by March and April, showing a shift toward liquidation cases rather than repayment plans.

The year-over-year numbers remained firm. Chapter 7 was up 13.05%, Chapter 13 was up 13.02%, Chapter 11 was up 44.64%, and Subchapter V was up 42.93%. The commercial growth rates are notable, but the overall filing picture is still being shaped primarily by consumer volume.

 

Q2 Started from a Stronger Base

April is only the first month of the second quarter, so it is too early to draw conclusions about the full quarter. Even so, the opening level is worth noting.

At 56,442 filings, April came in well above January 2026’s 45,834, which means Q2 opened 23.14% higher than Q1 did. It also started 13.51% above April 2025.

That does not mean Q2 will keep rising at the same pace. It does mean the quarter began at a stronger level than both the prior quarter and the same point last year. The filing environment remains firm as the second quarter gets underway.

 

Large States Still Anchor the National Picture

The largest filing states in April were:

  • California: 5,329
  • Florida: 4,519
  • Texas: 3,609
  • Georgia: 2,850
  • Ohio: 2,674
  • Illinois: 2,588
  • Michigan: 2,248
  • New York: 2,085
  • Tennessee: 2,026
  • Alabama: 1,842

Florida remained one of the stronger large-state growth stories, with filings up 23.71% year over year. Texas stood out even more, rising 37.96%, while California grew 13.89%, Georgia 18.75%, and Ohio 13.21%. Other states posting solid gains with meaningful volume included Washington, North Carolina, Pennsylvania, and Arizona.

The broader pattern remains familiar. Filing growth is spread across multiple regions, but the South and Sun Belt continue to account for a significant share of the increase.

 

April’s Decline Was Milder Than Usual

April’s headline suggests some cooling. That is true on the surface, but the historical comparison gives the month a different shape.

From 2000 through 2025, filings declined an average of 7.68% from March to April. This year, they declined only 3.26%. So April did move lower, but it held up better than the long-run pattern would suggest.

That is what makes the month worth paying attention to. April was not another surge, but it was also not much of a release. It looked more like a market pausing at a higher level than one losing momentum.

The pre-Covid comparison helps sharpen that point. Even with April posting its strongest reading in seven years, filings were still 18.90% below the average April level from 2017 through 2019. That keeps the market in perspective. Volumes continue to rise, but they are still moving toward, not yet fully back to, more typical pre-pandemic levels.

There is progress, though. March was 24.29% below its pre-Covid monthly average. April came in 18.90% below its own. That is a 5.39-point improvement in the gap to normal.

 

Economic Indicators to Watch

The broader backdrop still points to continued consumer credit pressure, even if April did not produce another jump in filings. The Federal Reserve kept the federal funds target range at 3.5% to 3.75% in March, while CPI rose 3.3% year over year in March, up from 2.4% in February.

The latest available household debt data also shows that consumer balance sheets remain stretched. The New York Fed reported total household debt at $18.8 trillion at the end of 2025, with elevated balances across credit cards and auto loans.

Foreclosure activity is also worth watching more closely. ATTOM reported 30,334 foreclosure starts in March 2026, up 17% from February and 21% from a year earlier. On a quarterly basis, Q1 2026 foreclosure starts were up 20% year over year, pointing to continued pressure in the default pipeline even if the housing market is not under broad stress.

Taken together, those indicators help explain why filings held up better than normal in April. The pressure still looks strongest on the consumer side, which lines up with the chapter mix and with the way bankruptcy activity has been building over the past several quarters.

 

What It Means

April reinforced the broader direction of the market.

Filings remained well above last year, Q2 opened at a stronger level than both Q1 and the same quarter a year ago, and the month held up better than the usual seasonal pattern would suggest. At the same time, volumes remain below pre-Covid April norms, which is a reminder that the market is still climbing back toward earlier cycle levels rather than fully operating there already.

For leaders responsible for bankruptcy, default, and servicing operations, the takeaway is straightforward: the underlying trend still points to elevated consumer-driven volume and continued operational pressure as the year moves forward.