US Bankruptcy Filings Rose 12% in First Half of 2026
US bankruptcy filings increased 12% in the first half of 2026 versus 2025.
Why it matters: Legal and financial professionals need up-to-date bankruptcy trends to advise clients effectively and adjust case strategies amid rising financial distress.
- Total US bankruptcy filings rose 11.9% to 591,850 cases in the 12 months ending March 31, 2026.
- Business filings increased 11.4%, reaching 25,960 cases in the same period.
- In H1 2026, total filings hit 310,550, a 12% rise from H1 2025.
- Commercial Chapter 11 filings jumped 28%, while Subchapter V elections surged 50%, highlighting small business distress.
Bankruptcy filings across the United States are climbing significantly in 2026. According to US Courts data, total filings increased by 11.9% in the 12 months ending March 31, 2026, reaching 591,850 cases. Business bankruptcies rose 11.4%, with 25,960 filings, while non-business filings climbed nearly 12%, totaling 565,890 cases.
The first half of 2026 also saw heightened commercial bankruptcy activity. Epiq analysis reports total bankruptcy filings at 310,550, a 12% increase from 276,306 for the same period in 2025. Commercial bankruptcies rose 13%, with 17,285 cases. Notably, commercial Chapter 11 filings surged 28% to 4,589, reflecting growing financial challenges for larger businesses.
Small business bankruptcy filings are an area of particular concern, increasing by 35% year-over-year. Industry observers point to early impacts in sectors like construction. Subchapter V elections within Chapter 11 have risen 50% to 1,663, indicating more small businesses are pursuing streamlined bankruptcy processes.
Michael Hunter, Vice President of Epiq AACER, commented, "The 50% rise in Subchapter V elections underscores the mounting challenges facing small businesses amid higher borrowing costs and softening demand, while the 12% increase in overall filings reflects broader financial pressures nationwide."
These trends underscore the importance for legal and financial counsel to stay current on bankruptcy data. Strategies must adapt to increased filing volumes and the nuanced challenges facing both large commercial and small business debtors.
By the numbers:
- 591,850 total bankruptcy filings — 12-month period ending March 31, 2026
- 310,550 total filings — first half of 2026
- 50% increase in Subchapter V elections — first half of 2026
What's next: Watch for further quarterly bankruptcy reports to track whether these trends accelerate or stabilize later in 2026.