Business Bankruptcies Jump 34 Percent in First Half of 2024

The increase in commercial bankruptcy filings is expected to create an increase in individual filings, says bankruptcy data provider Epiq AACER.

A Red Lobster restaurant is seen in Schaumburg, Ill., on May 20, 2024. The Canadian Press /AP-Nam Y. Huh

Bankruptcy filings by commercial entities grew by more than a third this year as businesses struggled under an environment of high costs and interest rates, according to the American Bankruptcy Institute (ABI).

A total of 3,016 commercial Chapter 11 bankruptcies were filed in the January–June period this year, up 34 percent from last year, said a July 3 ABI press release. Small-business filings rose by 61 percent. Total bankruptcy filings rose by 15 percent, with individual filings increasing by 15 percent.