Consumer Chapter 7s Increased by 22 Percent

NEW YORK/ALEXANDRIA – Nov. 5, 2024 — Total bankruptcy filings were 47,104 in October 2024, a 16 percent increase from the October 2023 total of 40,674, according to data provided by Epiq AACER, the leading provider of U.S. bankruptcy filing data. 

Individual bankruptcy filings totaled 44,522 in October 2024, also registering a 16 percent increase from the October 2023 38,278 filing total. There were 27,358 individual chapter 7 filings in October 2024, a 22 percent increase over the 22,351 filings recorded in October 2023, and there were 17,091 individual chapter 13 filings in October 2024, an 8 percent increase over the 15,874 filings in October the previous year.

“We continue to observe a rise in overall filings, with notable increases in individual filings, reflecting the financial pressures faced by households,” said Michael Hunter, vice president of Epiq AACER. “Factors such as higher consumer loan delinquency rates, increased interest rates, record-high national average mortgage payments, sharp increases in insurance premiums, and overall increased expenses are significantly impacting household budgets, driving the upward trend in bankruptcy filings.”

Overall commercial filings increased 8 percent to 2,582 in October 2024, up from the 2,396 commercial filings registered in October 2023. There were 563 commercial chapter 11 filings registered in October 2024, down 13 percent from the 647 filings registered in October 2023. Small business filings, captured as subchapter V elections within chapter 11, were 202 in October 2024, representing an increase of 18 percent from 171 in October 2023. 

“Elevated prices for goods and services, along with higher borrowing costs, compound the economic challenges faced by struggling families and businesses,” said ABI Executive Director Amy Quackenboss. “Access to bankruptcy is key to consumers and companies looking to alleviate their intensifying debt loads and have a chance for a financial fresh start.”

October’s total bankruptcy filings represented an 11 percent increase when compared to the 42,547 total filings recorded in September. Total individual filings for October also represented an 11 percent increase from the September 2024 filing total of 40,098. Individual chapter 7s increased 14 percent and chapter 13s increased 7 percent over September’s filings. Commercial filings increased 5 percent from September’s commercial filing total of 2,449. Subchapter V elections within chapter 11 increased 22 percent from the 165 filed in September 2024. Conversely, the commercial chapter 11 filing total decreased 24 percent from the September 2024 commercial chapter 11 filing total of 739. 

Epiq AACER is a division of Epiq and is the leading provider of data, technology, and services for companies operating in the business of bankruptcy. Its Bankruptcy Analytics subscription service provides on-demand access to the industry’s most dynamic bankruptcy data, updated daily. Learn more at https://bankruptcy.epiqglobal.com. 

About Epiq 
Epiq, a global technology-enabled services leader to the legal industry and corporations, takes on large-scale, increasingly complex tasks for corporate counsel, law firms, and business professionals with efficiency, clarity, and confidence. Clients rely on Epiq to streamline the administration of business operations, class action and mass tort, court reporting, eDiscovery, regulatory, compliance, restructuring, and bankruptcy matters. Epiq subject-matter experts and technologies create efficiency through expertise and deliver confidence to high-performing clients around the world. Learn more at https://www.epiqglobal.com.

About ABI 
ABI is the largest multi-disciplinary, nonpartisan organization dedicated to research and education on matters related to insolvency. ABI was founded in 1982 to provide Congress and the public with unbiased analysis of bankruptcy issues. The ABI membership includes nearly 10,000 attorneys, accountants, bankers, judges, professors, lenders, turnaround specialists and other bankruptcy professionals, providing a forum for the exchange of ideas and information. For additional information on ABI, visit www.abi.org. For additional conference information, visit http://www.abi.org/calendar-of-events.

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Press Contacts
Carrie Trent
Epiq, Director of Communications & Public Relations
Carrie.Trent@epiqglobal.com