BANKRUPTCY INSIGHTS
Bankruptcy Filings Rose 8.80 Percent in April,
Nearly Matching the Previous Month's Five-Year Peak
Bankruptcy filings rose 8.80% year over year in April, reaching 49,625 total cases, just shy of March’s five-year high. Despite volatility in broader economic indicators, the steady rise in filings points to sustained financial pressure across households and businesses.
The increase was driven primarily by Chapter 7 liquidations, which rose 13.34%. Chapter 13 filings saw a modest increase, while Chapter 11 dipped slightly following two unusually active months. Subchapter V small business cases declined for the fifth consecutive month, extending a downward trend that began after last year’s eligibility rule changes.
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VIDEO: Recap and Analysis of April Filings Data
March’s five-year high and marking an 8.80 percent year-over-year increase.
In this month’s video, we take a closer look at the chapter-level breakdown behind the numbers. Chapter 7 liquidations drove most of the increase, while Chapter 13 filings rose slightly and Chapter 11 dipped after two unusually active months. Subchapter V cases declined again, continuing a months-long trend.
We also briefly note broader economic volatility and consider whether filings could continue rising or take an even sharper upward turn.
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