US Bankruptcy Filings Increase 12.2% in Year Ending June 2026
US bankruptcy filings rose 12.2% to 310,550 cases in the year ending June 2026, per US Courts data.
Why it matters: Why it matters: Rising bankruptcy cases indicate expanding legal workloads for restructuring and insolvency teams in corporations and law firms. Understanding detailed trends helps legal professionals prepare for increased demand and complex client needs.
- Total US bankruptcy filings rose 12.2% to 310,550 cases from July 2025 to June 2026, according to U.S. Courts data.
- Business bankruptcy filings increased 13% to 17,285 cases in the first half of 2026 versus the same period in 2025.
- Subchapter V elections — a streamlined bankruptcy option for small businesses within Chapter 11 — grew 50% to 1,663 filings in the first half of 2026.
- June 2026 saw 52,303 bankruptcy filings, a 12.97% rise over June 2025, the highest June total since 2019.
Bankruptcy filings in the United States rose 12.2% to 310,550 cases in the 12 months ending June 30, 2026, compared to 276,306 in the prior year, based on official U.S. Courts data.
The increase follows a period of historically low filings in mid-2022 and aligns with broader economic challenges, including inflationary pressures and tightening credit conditions reported by financial analysts.
Business bankruptcies rose 13% in the first half of 2026 to 17,285 cases versus the same period in 2025. Notably, filings electing Subchapter V status within Chapter 11 — a provision designed to expedite bankruptcy for small businesses by simplifying procedures and reducing costs — surged 50% to 1,663 filings in that timeframe. These figures were highlighted by analysis from Bankruptcy DataMetrics, an independent legal analytics firm, further contextualizing the official numbers.
Michael Hunter, Vice President at Epiq AACER, a provider of bankruptcy and legal services, noted in an industry interview, "The substantial rise in Subchapter V elections signals increased financial distress among small businesses contending with higher borrowing costs and subdued demand." Hunter emphasized that the 12.2% overall rise in bankruptcy filings reflects widespread financial pressures impacting diverse sectors.
June 2026 recorded 52,303 bankruptcy filings, a 12.97% increase from June 2025 and the highest June total observed since 2019. Chapter 11 filings, which generally involve corporate reorganizations, grew 31% year-over-year in June, with Subchapter V filings up 25.6% in that month alone.
For legal professionals specializing in restructuring and insolvency, these trends underscore a growing need for bankruptcy-related advisory and litigation services. Law firms and corporate legal departments may face increased case volumes and more complex client situations as economic headwinds persist.
By the numbers:
- 310,550 — total US bankruptcy filings in the year ending June 2026
- 17,285 — business bankruptcy filings in first half of 2026
- 1,663 — Subchapter V bankruptcy filings in first half of 2026 (50% increase)
Yes, but: While filings increased, some experts suggest the rise partly reflects delayed cases from prior years rather than solely new economic distress, indicating possible normalization after historically low filings.
What's next: Markets and legal observers will monitor upcoming quarterly bankruptcy data for indications of whether these trends continue, particularly as economic conditions evolve through late 2026.