Bankruptcy: Small Business Subchapter V Elections Increase 46%, Total Filings Increase 11%
Bankruptcy
Small Business Subchapter V Elections Increase 46%, Total Filings Increase 11%
Interest rates continue to rise, placing a strain on borrowing costs, expenses and payment delinquencies. More businesses are turning to bankruptcy to reorganize debt and we expect the filings to continue to rise through 2027. The statistics from January through September 2026 show it.
There were 25,467 overall commercial bankruptcy filings, a 7% increase from 2025 (23,789); and an 11% increase in commercial chapter 11 filings from 2025. There were 2,442 subchapter V elections within chapter 11 filed during the first nine months of 2026, which was an increase of 46% from the 1,672 filings during the same period in 2025 (per Epiq AACER, the leading provider of U.S. bankruptcy filing data). Congress recently increased the eligibility limits for both subchapter V (to $7.5 million) and chapter 13 (to $2.75 million), expanding access for struggling businesses seeking bankruptcy relief – that legislation now rests on the president’s desk for signature.
When you get notice of a bankruptcy filing by a vendor, customer or other party upon whom you rely to keep your business going and you need to figure out what to do, our firm is here to help you plan, grow, and protect your business. Please contact Dawn at: dawn@eppscoulson.com.
EPPS & COULSON, LLP
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