Commercial Bankruptcies Surge 42% in April 2026, Driven by Small Business and Consumer Struggles

Event summary

  • Commercial Chapter 11 filings rose 42% YoY in April 2026, reaching 644 cases.
  • Overall commercial filings increased 21% YoY, with small business Subchapter V elections up 46%.
  • Individual bankruptcy filings grew 13% YoY, with Chapter 7 and Chapter 13 filings up 14% and 11%, respectively.
  • Chapter 12 filings for family farms and fisheries surged 130% YoY, the highest since February 2020.
  • Bipartisan legislation aims to raise Subchapter V debt limits to $7.5M and Chapter 13 limits to $2.75M.

The big picture

The surge in bankruptcies reflects broader economic pressures, including inflation, higher borrowing costs, and geopolitical uncertainty. The proposed legislative changes signal growing recognition of the need to support distressed small businesses and consumers. Epiq's data highlights the intensifying financial strain across both commercial and individual sectors, with small businesses and family farms particularly vulnerable.

What we're watching

Consumer Financial Stress
How rising auto loan delinquencies and higher living costs will impact Chapter 7 and 13 filings.
Small Business Resilience
Whether the proposed Subchapter V debt limit expansion will ease restructuring pressures.
Legislative Momentum
The pace at which Congress advances bankruptcy threshold adjustments.