Commercial Bankruptcy Filings Surge in July 2025

By: Michael L. Moskowitz, Esq.

Newly released data shows a significant rise in bankruptcy filings across the U.S., with commercial businesses seeing some of the steepest increases.

Rising Commercial Filings

In July 2025, total commercial bankruptcy filings rose 26 percent compared to July 2024. This increase was driven largely by a 78 percent jump in commercial chapter 11 filings, as more companies seek restructuring tools to address mounting financial pressures.

Small businesses were also impacted. Subchapter V elections, which provide a more streamlined chapter 11 process for small enterprises, climbed 30 percent year-over-year—highlighting the ongoing strain faced by entrepreneurs and local business owners.

Consumer Filings See Growth as Well

The overall bankruptcy filing rate—both commercial and noncommercial—rose 12 percent in July compared to the prior year. Noncommercial filings reached 46,617, an 11 percent increase from July 2024. Within this group:

• Chapter 7 consumer filings increased by 13 percent.
• Chapter 13 consumer filings grew by 7 percent.

These figures suggest rising financial stress among households, likely driven by inflation, higher interest rates, and broader economic challenges.

What This Means for Businesses and Consumers

The increases across both business and personal filings underscore the importance of understanding available financial and legal protections. For companies, chapter 11 and subchapter V may offer opportunities to restructure debt and preserve operations. For individuals and families, chapters 7 and 13 remain vital tools for regaining financial stability.

How FRB Can Help

At Falcon Rappaport & Berkman, our Creditors' Rights & Bankruptcy Practice Group attorneys advise financial institutions, businesses, entrepreneurs, and individuals when they are affected by a bankruptcy filing. Our team of experienced professionals provide the guidance needed for creditors to make informed decisions. Contact us today at (516) 599-0888 or by filling out the form below to learn more about your options and how we can help you move forward with clarity and confidence.

DISCLAIMER: This summary is not legal advice and does not create any attorney-client relationship. This summary does not provide a definitive legal opinion for any factual situation. Before the firm can provide legal advice or opinion to any person or entity, the specific facts at issue must be reviewed by the firm. Before an attorney-client relationship is formed, the firm must have a signed engagement letter with a client setting forth the Firm’s scope and terms of representation. The information contained herein is based upon the law at the time of publication.