US Mom-and-Pop Business Bankruptcies Rise Amid ‘Ongoing Financial Stress’

Businesses and households are facing tighter credit conditions amid higher interest rates, and increasing balances.

A person arrives at the U.S. Bankruptcy Court for the Southern District of New York in New York City, on Jan. 9, 2020. Brendan McDermid/Reuters

U.S. small business bankruptcies rose in November as mom-and-pop shops faced “ongoing financial stress,” according to data from bankruptcy filing platform Epiq AACER.

Last month, small business filings under Chapter 11’s Subchapter V climbed to 223, a 23 percent increase from the 182 filings registered in November 2024.