October saw a 13% decrease in commercial Chapter 11 bankruptcy filings, according to a monthly report from Epiq AACER and ABI. There were 563 commercial chapter 11 filings registered in October 2024, down from the 647 filings registered in October 2023.

Total bankruptcy filings were 47,104 in October 2024, a 16% increase from the October 2023 total of 40,674.

Individual bankruptcy filings totaled 44,522 in October 2024, also registering a 16% increase from the October 2023 38,278 filing total. There were 27,358 individual chapter 7 filings in October 2024, a 22% increase over the 22,351 filings recorded in October 2023, and there were 17,091 individual chapter 13 filings in October 2024, an 8% increase over the 15,874 filings in October the previous year.

“We continue to observe a rise in overall filings, with notable increases in individual filings, reflecting the financial pressures faced by households,” said Michael Hunter, vice president of Epiq AACER. “Factors such as higher consumer loan delinquency rates, increased interest rates, record-high national average mortgage payments, sharp increases in insurance premiums, and overall increased expenses are significantly impacting household budgets, driving the upward trend in bankruptcy filings.”

“Elevated prices for goods and services, along with higher borrowing costs, compound the economic challenges faced by struggling families and businesses,” said ABI Executive Director Amy Quackenboss. “Access to bankruptcy is key to consumers and companies looking to alleviate their intensifying debt loads and have a chance for a financial fresh start.”