Chapter 11 Bankruptcy Filings Increase 42 Percent

While bankruptcy numbers are increasing, other economic indicators, such as employment and business sector activity, are giving mixed to positive signals.

A hiring ad is displayed at a store in Columbia, Md., on Sept. 18, 2025. Madalina Kilroy/The Epoch Times

There were 644 commercial Chapter 11 bankruptcy filings in April 2026, a 42 percent yearly increase, according to a May 6 statement from the American Bankruptcy Institute (ABI).

A Chapter 11 bankruptcy seeks to reorganize a company’s debts, with the aim of keeping the business operational and, eventually, becoming solvent. This is the most common type of bankruptcy filing made by businesses.