BANKRUPTCY INSIGHTS
January Bankruptcies Rise 10%, Chapter 11 Activity Continues to Outpace Historical Levels
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Total bankruptcy filings increased 9.89 percent year over year in January 2026, continuing the upward trend that developed through 2025. While overall filings remain 16.91 percent below pre-pandemic January averages, the composition of filings reflects growing financial strain.
Chapter 11 filings rose 64.33 percent year over year and stood at more than double pre-pandemic January levels. January marked the second-highest January total for Chapter 11 filings in the past 26 years, exceeded only during the period following the financial crisis. Together, these trends point to continued pressure on small and mid-market enterprises as credit conditions tighten moving into 2026.
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